Hello - I'll try and keep this as succinct as possible, which isn't very succinct having read it back.
I have a BTL mortgage on a property in which I used to live.
The mortgage originally was a repayment mortgage.
Due to work relocation I moved out and changed to a BTL mortgage in 2014.
became a classic 'reluctant landlord'.
The property was let to tenants 2014-early 2017.
I decided to sell the property earlier this year via estate agents.
There were two offers on the property,
over a period of around six months,
each about 3 months apart,
both of which were accepted.
Unfortunately both potential buyers pulled out.
Had the second sale completed it would have left a shortfall,
but not an unmanageable amount.
Apparently both pulled out as potential lenders wouldn't provide a mortgage on the property.
effectively the property appears to be un-mortageable.
I don't know exactly why, but I'm guessing it must be some sort of structural issue, subsidence, etc.
The final resort, before 'voluntary repossession', is selling at auction.
I have set a reserve price which will leave a more significant shortfall,
one which I can't meet,
nevertheless at a price which may sell.
potentially mitigating any shortfall,
where the maximum in the event of not selling,
is obviously the full outstanding mortgage amount.
However, in order to allow any sale to go through,
my solicitor has advised I obtain consent from the lender,
which effectively is the lenders agreement to discharge the mortgage on the property in the event it sells at least the reserve price,
just to allow respective solicitors to complete a sale.
For the purpose of this auction sale exercise,
I'm not requesting immediate discharge of any shortfall.
In the absence of any consent,
the solicitor has advised me not to sell at auction.
The lender has verbally refused to agree to this.
in my view this forces me into a 'voluntary repossession' situation.
Effectively I am trying to demonstrate I have done all I can to try and sell the property.
by effectively placing me into a 'voluntary reposession' situation,
I guess the lender will have to attempt to sell at auction anyway at some stage.
Anyone else ever been in similar situation or have any advice?