We are currently in a situation with the Halifax BS. I have a flat that has negative equity. Our house is in my husbands name only. We were selling the flat under the POWER OF SALE SCHEME and we understood that I would have a repossession registered against me although voluntarily. Now the buyer has pulled out due to the length time in processing the sale and vandalism to the property. After visiting the area ourselves and talking to Neighbours in the vicinity we have since learned that the council are planning to pull down all the flats in the area, although not in the near future. We would like to know the pros & cons of (a) letting the Halifax reppossess as normal (court papers have already been drawn up, althought the date has passed due to selling the property, or (b)handing back the keys voluntarily. The oustanding mortgage is in the region of £27000 flats are selling at around £9000 but falling in value rather quickly due to the news and the state of the area, as council not managing the upkeep of the area (that we as leaseholders pay for) All advice gratfully recieved!!

-- Deb Derham (ddebmaryk@aol.com), June 08, 2001

Answers

Purely from my own experience, I would NOT hand the keys in, as your legal position when you do appears to be far more precarious with regard to pursuit and recovery. I am not familiar with the selling scheme you mention, but surely you have a case against the Council in the circumstances you detail?

-- Too scared to say (iwasduped@yahoo.com), June 08, 2001.

As the council are pulling down all the flats in the area, are they pulling down yours as well in the future? If so, then you would be entitled to receive a sum of money from the council, although I don't know how much or how compulsory purchase works.

The aftermath of handing back the keys voluntarily and having a repossession forced upon you is the same.

I would suggest that you do see a solicitor for advice, if not for the repossession/surrender, but where you stand with the council and their demolition plans.

If the council are not planning to demolish your block, you may be entitled to some sort of compensation for having the flat devalued because of their actions. Only a solicitor can advise you on this.

-- pendle (pendle@amun-ra.demon.co.uk), June 12, 2001.