Property, how can I be rid of it?

[Velvetee]

I purchased a new build property 4 years ago in Leicester and since I've had it, it's been a millstone around my neck.

Not only do I make a loss with the rental income, but the property is in negative equity.

I don't want it anymore, how do I get rid of it and where do I stand with the lender? If I hand back the keys, I will still owe them money, the outstanding mortgage is �149K, but I think it's only worth around �120K.

What options do I have?

Thanks

[sqad617]

No...well not too badly. In the Private Sector most of my life, but did indeed work in the Public Sector.I banged in as much as I could into Private Pension Plans for my retirement, but as soon as Labour got in in 1997, Gordon Brown "creamed" off the top 7% of my pot ( presumably to give to the Public Sector workers to maintain THEIR pensions) . Not entirely due to Gordon Brown, my last Pension Plan Pot was worth �100,000 last year and it is now worth �45,000.
Velv....I have NEVER made a good financial deal in my life and i have ALWAYS lived beyond my means......I am still her.

Stick with it Velvetee.

[emperorrosko]

Velvetee, hang on to the property, look to rent the place even just to make up some of the rent, take a lower rent than what people are charginging, and speak to you lender, am sure they will prefer for you to keep the property and paid what you can than reposses the property. maybe in future you will make up for the short fall. I done the same and my lender was very understanding at the present crises. good luck

[dot.hawkes]

oh and after 6 months the council will want council tax at 50% on an empty property, and so you really need to get someone in there

[brenda]

docspock---

What does being somewhat socialist actually mean?

Either you are or you are not---simple isn't it?

And I know this is not an answer to the original worrying question.

[Velvetee]

Yes Dot, another problem the council tax. I think the agen't I use are doing a promotion, where first month rent is half price, but still no takers. Hopefully rental market there, picks up in the New Year.

My private pensions are worth nothing too Squad, waste of time they were, which is why I hoped property would be the answer, but that doesn't look too good at the moment either.

[sqad617]

I know it has nothing to do with the question.....and for that I apologise.......Public Sector Pensions are basically guaranteed by the Government, but not so Private Pensions.

But remember Velv. all premiums for private pensions could be set against tax......and at the highest leve.

[kira000]

Not ideal, but have you contacted the university in leicester and offered it as student accom- or just advertised there?

From what i have een and heard, most university towns seem to be suffering from a lack of student accomodation due to the ever increasing numbers of students going to uni.The student accommodation people might be worth a call, and if you are lucky, you often find that students "pass on" the properties to the new batch when they leave.

Yes, you may find they dont all take as good care of the place, but if you get a good deposit (month and a half, to cover for the not pay the last months brigade), it should qt least pay the rent and you can always redecorate after if needs be.