21 Jan 2013 6:13 PM:

Calling UK nationals who may be in a similar situation...

I lived in Spain from 2001-2005. During that time I bought a property which is now worth far less than what I paid for it.

At the moment the property is rented but the rental income doesn't cover my mortgage repayments leaving me with a monthly contribution of £200.

Since returning to the UK I purchased a property in London which is currently also rented out becuase I am unemployed and can't cover the mortgage. 

What I would like to do is offer the Spanish property to my Spanish lender as payment in kind to cancel the debt but given I have negative equity I'm not sure whether I would be liable for the balance of debt.

Also I understand that there are stringent criteria to qualify for the scheme so not sure whether I (as a foreign non-resident whose primary residence is in the UK) qualify or where I can find out if I qualify

Lastly, I would also ike to find out whether my Spanish lender can force the sale of my property in the UK to make up the shortfall.

Any information with regards to this would be much appreciated.

Many thanks!

ML

 

This message was last edited by mlomeli on 21/01/2013.
Thread: "Payment in kind" - legal rights and obligations

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