I am trying to help my daughter and son-in-law. They are currently living in a 1 bedroom flat with an 18 month old daughter. Due to health reasons they desperately need a bigger property.
Unfortunately my son-in-law bought flat in 2007 before their marriage for £81,000 on a 100% interest only mortgage. The plan was to sell and buy bigger place on repayment mortgage once my daughter finished her nursing training. Unfortunately due to health issues my daughter couldnt complete her training.
The flat is now only worth around £57,000 so have a shortfall of £24,000. They are unable to overpay mortgage or save sufficient to clear negative equity. They have considered renting a larger property and letting their flat but could not achieve enough rent to cover mortgage payments( bad area ). Their only option seems to be repossesion but seems drastic.
Any advice would be welcome. Situation seems hopeless and both daughter and son-in-law are suffering from depression due to the stress.
Unfortunately my son-in-law bought flat in 2007 before their marriage for £81,000 on a 100% interest only mortgage. The plan was to sell and buy bigger place on repayment mortgage once my daughter finished her nursing training. Unfortunately due to health issues my daughter couldnt complete her training.
The flat is now only worth around £57,000 so have a shortfall of £24,000. They are unable to overpay mortgage or save sufficient to clear negative equity. They have considered renting a larger property and letting their flat but could not achieve enough rent to cover mortgage payments( bad area ). Their only option seems to be repossesion but seems drastic.
Any advice would be welcome. Situation seems hopeless and both daughter and son-in-law are suffering from depression due to the stress.
