I hope you can answer my query. I bought a property a few years back, and now it is worth much less than what I owe on the remaining mortgage balance. I don’t know why it has lost value, but a similar flat in the block sold for £20,000 less than mine, and all I keep hearing is property values are going up due to the pandemic. I am thinking of just walking away from the flat, giving the keys back to the mortgage company and moving on.
Any advice is helpful.
I understand your concerns and worries, however, the first question to ask is, were you planning on moving and selling your flat in the first place?
Are you are in arrears with your mortgage?
If you answer no to those two questions, why are you considering walking away from your home?
If the property values have dropped, and you owe more on the balance of the mortgage than the value of the flat, that loss is not realised until you try to sell the flat. So as long as you live there and pay your mortgage, no loss is there.
You are going to have to pay rent to live somewhere, stay in your own home. I would venture unless something drastic occurs, the property values will go back up.
If you want we can look closer at your situation, but from what you have stated, walking away may not be the best option.