Cannot Pay Commercial Property Mortgage

We have 280,000 due on a commercial warehouse property mortgage. Have been using savings and extra work to meet the monthly payments for 8 years. 12 years left on mortgage. Mortgage costs 2300 per month and rates/insurance/repairs cost a further 1600 per month. Property brings in 1000 per month. When we started the loan was 350,000 and we put up 250,000. That was in 2006.

I am currently two years into a three year fixed interest rate of 3.94%

Property is in good shape but worthless. Its replacement cost would be about 2,500,000. It is an a very remote area with a very weak local economy. It will never ever get a buyer.

I do not have any more savings to give and my wife and I have maxed our earning capacity and cost reduction. We could possibly give 500 per month. We have never missed a due payment in our lives. We are 52. Property will not yield more than 1000 per month.

1. When I start missing payments in a couple of months time, what are the bank going to do ?
2. I have a personal pension with 500,000 in it but I think the bank do not know about it. I can get 25% of it straight away. But I do not want to put pension into a worthless property.
3. Can I expect the bank to leave 280000 in the same property, when I wont put in any more that 500 per month and refuse to put in the pension ?
4. I would love an interest only period of 3 or 4 years. Things might be a bit better in five years time. Is that achieveable when I have been repaying all along.
5. I think the bank should realise that I am their best chance of getting anything back on this mortgage. A bank appointed receiver wouldn't even find this place let alone sell it.

Hello,

Why not arrange a meeting and go and speak with your Bank (face to face) ?

Be honest, entirely open and try to be prepared to answer questions and support your claims with documentation (i.e. payslips, evidence of rent and related expenditure etc).

Ask the Bank what assistance they can offer you.

Leaving the matter until arrears start to mount up is not a good idea imho.

In reality, anything is possible ....