Can I hand back a UK property in negative equity?

[lopin]

All,

looking for a bit of advice. Due to high % rates I can't afford to continue to pay mortgage on UK investment property. What would happen if I handed back to banks and walk away, can UK bank chase me in Ireland for shortfall

Thanks in advance

 

[ClubMan]

What do you mean by "underwater"?
Negative equity?
Or you just can't afford the latest repayments?
But you could afford them up to some other level?
What's the yield?
Some figures would be useful.

 

[lopin]

Negative equity
Cant afford payments
yield 6.5%

 

[Gordon Gekko]

Negative equity
Cant afford payments
yield 6.5%

You need to provide much more detail than that.

How much are the repayments, what’s it worth, what to you owe, what’s the term, what’s the rate?

 

[Brendan Burgess]

You should do a full Money Makeover and provide all the information necessary.

But UK mortgages are full recourse.

In other words, handing back the property does not cancel your obligations to the lender. If they sell the property for less than the mortgage, you owe the balance.

They are entitled to come after you in the Irish or UK courts for the balance. Whether they will or not is a different matter.

You should talk to your lender. They might agree to a voluntary sale and to write off the shortfall. They will get a lot less if you hand it back and they sell it.

Brendan