Surrender or Repossession

C

cmb

Registered User
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3
I have an interest only loan of €240k for what was a buy to let property but is now my only property. The property was let but is now vacant and on the market for sale. I have informed the bank that I will pay whatever I can whenever I can. There is thirteen years left on this mortgage at which time I will be 65. I am working part time in a temporary capacity so cannot sustain the mortgage.
If I cannot sell - what is my best option- to surrender or wait until the property is repossessed? What are the implications going forward?

Many thanks
cmb
 
You really need to engage with the lender on this issue rather than just unilaterally presenting them with a fait accompli. Fair enough if you cannot pay but you need to be a bit more constructive and pragmatic than outlined above. I'm not sure that "surrender" is an option in this jurisdiction (even for a rental/non owner occupier property) but you'd need to discuss that with the lender.
 
As this is the only property you own in the state you have the same rights as if it was your PPR and MARP and all that apply.
 
Another option as it is an investment property is to ask your lender to appoint a Fixed Charge receiver. They will manage the property on behalf of the lender and offset income against the loan. Its probably better for you and the lender than selling in the current market.
 

Thanks for reply. Could you tell me any more about this option- I have never heard of it. Bank of Scotland is the lender
 
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