Real Estate / Foreign investor, properties in Poland, walk away from mortgages? [209]

My friend has a property "investment" apartment, currently the apartment is valued at £120k (uk sterling) and the mortgage is £200k. It has been aboat 4 years since he paid a depost and fitted the apartment at a cost of about £25-50k (dont know the exact figures).

The rent income from the apartment (after the letting agency fee 25% and service charge 20%) is not covering the mortgage payment and is topped up by around £200 monthly.

What would be the best thing to do? Many have advised not to default and I agree it is not a good solution. I hear there are investors that step in and pay the mortgage in return for a share (or all) of the property.

The property is in a very good area and is always rented out.

Real Estate / Foreign investor, properties in Poland, walk away from mortgages? [209]


Probably greed? I do not know what he was thinking at the time. You are correct in saying that he currently is in a financial mess.

Real Estate / Foreign investor, properties in Poland, walk away from mortgages? [209]


Nadzski was my nick name when I played football as a child. Im no Nazi. Why would you say that based on anything I've said? Many people have made these investments in property, not just in Poland. Those are the facts, ive made nothing up.


Those are the facts, beleive it or not. £50k for a deposit AND fiting of apartment. My friend showed me the monthly rental income and 45% was taken by the management company and service charge. I dont think that is unusual if you go though a management company.

Thanks warszawski, finding a private tenant would be a good option to save the 25% of the rent income making it more feasable to carry on with the payments.

I was hoping there would be investors that help pay the monthly mortgage in return for a share of the property?

Real Estate / Foreign investor, properties in Poland, walk away from mortgages? [209]

Thanks, then that is something my friend can definatly look into to help his situation.

My personal view, there is no blame or moral issue. The investor took a chance, the banks took a chance. Sometimes investors win, the banks always win. Additiionally if you look at the investments that went into countries in this way it helped the economy, the employmet in building and construction, payed alot of workers wages, electrictions, architects, labourers etc. Without investment a country struggles.

Even my friend could end up being on the winning side after 15 years , who knows.

Real Estate / Foreign investor, properties in Poland, walk away from mortgages? [209]

If a mortgage holder (UK based) on a Polish property defaults on repayments and the property is reposed by the Polish bank can bailiffs call on his UK property?

Do the Polish bank need to go through the UK courts to obtain instruct bailiffs to enforce repayment in the UK property of the defaulter? or will Polish court be sufficient for bailiffs to act in the UK?

Real Estate / Foreign investor, properties in Poland, walk away from mortgages? [209]


Thanks. Yes we will approach bank, but they have already capped the mortgage by about 30%, do you think they would offer more reduction per month? Also I am interested in any investors, I saw on some threads investors will help with the payments in return for a share of the property? Anyone have experience of this?