English
FrançaisGood afternoon all,
I wondered if anyone in the UK had defaulted on a French mortgage? If so could you let me know what has happened so far.
I have a mortgage with SocGen and like many people find myself with a property in enourmous negative equity. I am currently considering defaulting on the mortgage so that the property is repossed. I am sure the bank would chase for repayment but it is not 100% clear if they would be successful.
Kind regards, Neil.
Not yet but I can't afford to keep up with paying due to the government now thinking I should pay 57% tax on my income..
To be honest £26K down and 13 years of paying a mortgage but I'm willing to walk away with nothing... I can't see the value ever returning to anywhere near what I paid for it so its time to walk away I think... also I am fully expecting the current management company to go under anyways..
The silver lining is that unless your in a good finacial position then if you currently own a UK house with a mortgage on it its likely to devalue 30-40% anyways maybe putting folks in negative equaity so there is no value for them there...
Let us know how it goes Neil
cheers
Tom
If you have a leaseback and your property is repossessed, be aware theat you could be liable for paying the remaining amount of VAT on the purchase price.
The VAT know no borders.
Hi Fat_Tom,
Are you based in the UK or France? I think my property is about 100k in negative equity if i sold now. Also more than happy to walk away with nothing and agree, I doubt the value will return high enough to make it worth while. The rental income covered less than a 1/3 of my mortgage.
Do you mean UK houses dropping in value by 30-40%?
Hi Geoff, I assume if the property is repossed then it just exchanges hands at market value and therefore no VAT would become due as it would still be managed under a leaseback scheme?
Kind regards, Neil.
Neil,
Yes I'm UK based.
The 30-40% value reduction I was referring to was a UK property - I find it very hard to believe with the massive unemployment etc coming after the furlough payments are stopped its hard to see how there can't be a UK house price crash - this will put millions in the UK into negative equity I suspect with the silver lining being there is no money in a UK property for a french bank to pursue.. - might be wrong of course...
with regards to paying back the TVA/VAT I can't see that happening because a) I don't have any money and b) its not my house? the french back will be selling it as its theirs and none of my business? - that is after all what default is about is it not? - of course the bank will roll all this up and more made up charges when they send you a demand for payment which is what we are talking about - who knows time will tell
Anyway thats the first payment failed to come out this month so we shall see what happens next
cheers
If bank sell apartment when lease still in place then since 2012 there is no TVA clawback for owner with lease as new owner who buys at bank aution takes over lease and pays TVA on any rents receoved on lease.
However problem seem to be that bank put huge inflated charges on property linked to survey and other costs and sales price at those court-bank-auction are low. Bank may try to chase outstanding debt but not sure if there has ever been much success in chasing non-French owners.