UK Owners - Anyone defaulted on mortgage?

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UK Owners - Anyone defaulted on mortgage?

Good afternoon all,

 

I wondered if anyone in the UK had defaulted on a French mortgage? If so could you let me know what has happened so far.

 

I have a mortgage with SocGen and like many people find myself with a property in enourmous negative equity. I am currently considering defaulting on the mortgage so that the property is repossed. I am sure the bank would chase for repayment but it is not 100% clear if they would be successful.

 

Kind regards, Neil.

Not yet but I can't afford to keep up with paying due to the government now thinking I should pay 57% tax on my income..

 

To be honest £26K down and 13 years of paying a mortgage but I'm willing to walk away with nothing... I can't see the value ever returning to anywhere near what I paid for it so its time to walk away I think... also I am fully expecting the current management company to go under anyways..

 

The silver lining is that unless your in a good finacial position then if you currently own a UK house with a mortgage on it its likely to devalue 30-40% anyways maybe putting folks in negative equaity so there is no value for them there...

 

Let us know how it goes Neil

cheers

Tom 

If you have a leaseback and your property is repossessed, be aware theat you could be liable for paying the remaining amount of VAT on the purchase price.

The VAT know no borders.

 

Hi Fat_Tom,

Are you based in the UK or France? I think my property is about 100k in negative equity if i sold now. Also more than happy to walk away with nothing and agree, I doubt the value will return high enough to make it worth while. The rental income covered less than a 1/3 of my mortgage.

Do you mean UK houses dropping in value by 30-40%?

 

Hi Geoff, I assume if the property is repossed then it just exchanges hands at market value and therefore no VAT would become due as it would still be managed under a leaseback scheme?

 

Kind regards, Neil.

 

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