Hello all, I need some urgent advice. Essentially I am going to have a severe problem that I need advice on. I have 2 Buy to let properties in Scotland that I have had 10 years with 2 great long term tenants in them.
However, the mortgage rate has gone up to 5% so the monthly cost of both is over £3000 pm and I get €1500 in rent for both so massive monthly shortfall I cannot afford. Moreover both properties together are worth £320,000 , and the mortgages are £625,000 so I can’t sell or re mortgage due to this huge negative equity so I am trapped. As of today I have not missed a payment but will be next month.
I have spoken to CCCS and Business debt line and I need some specialist advice as the properties are in Scotland and I live in England. I have exhausted all the advice lines recommended by money advice Scotland.
I want to know:
1. Should I try to sell them myself ( will cost me £2000 up front with the new compulsory Scottish Home Report and marketing fees )
2. Allow lender to repossess?
3. Should I hand back the keys?
4. I am not sure if implications of these are different
Any of these will still however leave a £300,000 ish shortfall. Can the lender then pursue me in England? Can they make me bankrupt?
I really need some advice but do not know where to go. It is complicated bu the fact I live in England and the properties are in Scotland.
Please can you keep this info confidential , apart from your experts.