Sums just dont add up

[Giveitblackmore 1]

We have had a reposession order suspended on our flat that we rent out for four months now while sale of the property goes through - we have had to extend the lease in order to sell the property...landlords gave us estimate and on that basis we agreed price with buyer...we have just found out that the actual amount they want is far higher and this puts us into negative equity alongside all the other expenses of the sale...

 

We may have no option but to allow the property to be repossessed if thats the case what are the repercussions financially? Is our obligation to mortgage company satisifed on that basis?

 

Thanks very much

 

GIB

[chiefengineer 267]

The lender will chase you for any shortfall between the sale price/sale cots and the mortgage,

[brokebutnotbeatn 392]

your mortgage lender would have to give you permission to sell if you are in a negative equity situation. Talk to them. It might be better for them to allow this rather than repossess.

[Giveitblackmore 1]

Thanks very much for this....I have a couple more questions that my ex-partner who I co-own the property with needs answering...

 

she's driving me nuts....I can't remember ever being this stressed!!!

 

Would neg equity include the price of an extension of lease on top of the sale price? Obviously you would think 'no' but maybe it is a consideration as no mortgage lender would take it on without the lease extension.

 

How does a repossession affect lending and our credit rating in the future?

 

Would any other possessions etc be taken in lieu of money owed either now or in the future when the debt is up for recovery?

 

 

Thanks so much

 

GIB

[brokebutnotbeatn 392]

Hi, I think you know the answer. If they allow the sales to progress they may want a repayment plan for the shortfall. They have 12 years to come after you for this. I would say the lease extension would be reflected in the price you get and not something you spend money on first. in the current climate a repossession would significantly affect you. No possessions won't wash unless the bailiffs are sent in to execute a court order you failed to defend. I think you should have a discussion with your mortgage company and see what the options are.