UK Mortgage Default

iveski

Can anyone one offer assistance :

Some years ago I purchased an investment property in London with a business associated, the loan was with a UK bank and we did not secure it against our Irish houses and no other personal guarantees were given, we both have now lost our jobs and my business partner has indicated he is taking up a post in Asia, I wish him well and will miss his humour in these tough times, having spent most of my life working abroad I would be joining him were it not for my young family, he has indicated he will not be returning and will not be able to continue with the payments of the London property. I myself cannot afford to pay the full amount and might have to 'hand back the keys' what are the consequences of this to me in Ireland. Can the UK bank 'come after me' for settlement ?

seamus

iveski wrote: »

Can the UK bank 'come after me' for settlement ?

Yes.

I don't know what the process is in the UK for handing back the keys - I don't know if you can do it.

The UK property market isn't nearly as badly affected as the Irish one. Why don't you put it on the market? Indicate to your business partner that you're going to sell the property and ask him to continue paying his share of the loan until the property is gone, then you split any proceeds of the sale.

Seems like the obvious solution surely?

iveski

Thanks Seamus for your input,
but at this stage I would like to know the hard facts as to what would happen, legally etc. before I make a decision.

I do understand I have options, and will weigh these up when I have all info to hand.

For the moment I just need help on my initial question ie. the consequences of defaulting.

iveski

can anyone help out with clarification ?