Second house default of mortgage

[RDB]

Hi' any advice would be welcomed.

Firstly, these houses are in Scotland.

I have a house (that I don't live in) and because of the dilapated state of the neighbouring house I can't sell it.
I've pursued every avenue through the local council to "encourage " the neighbour to repair the house but to no avail. The council are not interested. (South Lanarkshire)

My issue;
1. I have a mortgage on that property.
2. I live in an other house that I own outright.

Questions;
1. If I decide to stop paying the mortgage payments on the mortgaged property, can the mortgage lender only take that property or can they claim on my owned outright house?
2. 'cause I'm an old guy, will my daughter be liable for the house I can't sell?

Thank
Ralph

[Law Student 1]

Celestine
Hi,

If the money from the sale of the first property is not enough to cover your debt this is called a shortfall. Your lender will bill you for the shortfall of your mortgage and if you are able to pay this off without selling your second property then your second property would not be under risk. You could agree a payment plan with your creditor, this would be advisable since if you don't pay off the shortfall it could go to court and develop into a CCJ or worse which does put your second property at risk.

In the UK if you inherit a property with a mortgage you become liable for those mortgage payments, so your daughter would have to pay the rest of the house off if she inherits it and if you are not able to pay the mortgage off.

Hope this helps.