First post, so hello all!
I am self-employed (37), small business employing my wife and I, combined income of 65K, with two kids under 5.
On our family home, we owe 350K, is currently worth 300K. Our mortgage is 1400 pm month which we are paying.
On property investments, which was to be a pension fund, we owe 1.1 million, currently worth 600K, one property worth up to 200 is overseas and the deeds are with solicitor in Spain. Income is 2K per month, interest only is 4K per month.
Therefore we are capitalising 2K per month on a depreciating asset with major expense and headache with tenants, maintenance ect.
Our family home is with a different bank than our investment properties and is not listed secuity on the investmetn properties. We can manage the 1400 per month, buth that is about it.
As the economy picks up, we could likely afford another 500 PM to pay debts. It is unlikely that we will ever be able to pay back full debt so are we better to declare bankrupt.
Our preference would be to sell all properties for what the market will pay, commit to paying an amount to the bank for a number of years and eventaully get on with our lives.
At one stage, I employed over 70 people (services industry, not construction, before you ask). I need to deal with this issue one way or another to start again. (My new business will never scale to this size due to health and other reasons). At best 50K each per year
I am wondering what would the likely response of the bank be to the 500 PM?
How safe is my family home if I can't do a deal with the bank?
Like many people in my position, I need to resolve this in some shape or form as I think about it 24/7.
Thanks in advance for any comments.
I am self-employed (37), small business employing my wife and I, combined income of 65K, with two kids under 5.
On our family home, we owe 350K, is currently worth 300K. Our mortgage is 1400 pm month which we are paying.
On property investments, which was to be a pension fund, we owe 1.1 million, currently worth 600K, one property worth up to 200 is overseas and the deeds are with solicitor in Spain. Income is 2K per month, interest only is 4K per month.
Therefore we are capitalising 2K per month on a depreciating asset with major expense and headache with tenants, maintenance ect.
Our family home is with a different bank than our investment properties and is not listed secuity on the investmetn properties. We can manage the 1400 per month, buth that is about it.
As the economy picks up, we could likely afford another 500 PM to pay debts. It is unlikely that we will ever be able to pay back full debt so are we better to declare bankrupt.
Our preference would be to sell all properties for what the market will pay, commit to paying an amount to the bank for a number of years and eventaully get on with our lives.
At one stage, I employed over 70 people (services industry, not construction, before you ask). I need to deal with this issue one way or another to start again. (My new business will never scale to this size due to health and other reasons). At best 50K each per year
I am wondering what would the likely response of the bank be to the 500 PM?
How safe is my family home if I can't do a deal with the bank?
Like many people in my position, I need to resolve this in some shape or form as I think about it 24/7.
Thanks in advance for any comments.