IVA & Property Portfolio

dannyboyracer

Hi all,

Many of you have probably read my previous thread on BR and having a property portfolio, although im very appreciative of the advice many people have different views on how things works and as with all my discussions with financial firms to date im still getting conflicting information on this site.

Please therefore only post on this thread if you...

a) are currently in an IVA
b) have investment property this does not include your sole residence.

If the above applies I would like to pick your brains of your experience in the build up to the IVA along with the ins and outs of things to present day in time.

skintandscared_2

You need to speak to an IVA practitioner. I expect that your situation will be fairly unique. One thing to bear in mind is that although people say IVAs are for people who want to "protect property" (from bankruptcy), it is very likely that if your creditors accept you for an IVA it will be on the basis that you will refinance one or more of your properties in year 4 of the IVA, to completely repay what you owe. From what I've read on here, I'm not convinced that many IVA practitioners make that clear to people considering them, so please bear it in mind... It is possible that the IVA practitioner will agree a sum with the creditors - of, say, 50% of what you owe, then in year 4 they will demand that you refinance to raise the other 50%. AND you will have paid that practitioner £7k-ish for the privilege, PLUS have a hefty remortgage! Just things to think about before you speak to one of the experts. Good luck.

dannyboyracer

Cheers for the message skintandscared, I realise that in year 4 i will be made to refinance but as ive got 11 properties it may only mean I refinance one or two to repay what is owed. I am still and always have been intending to repay everything in full, if i have to refinance then so be it.

CCCS_Matthew

Hi dannyboyracer,

Something that's worth noting is that if your combined equity in all of your property exceeds your unsecured debt liabilities then an IVA would not be an option on the basis that you would not be classed as insolvent.

I've not read your other thread, so I don't know whether you've outlined this point already but I thought I would just mention this.

Matthew.

dannyboyracer

Hi CCCS_Matthew, my debts outweigh the properties value in todays market, 12 months ago it was a very different picture.

CCCS_Matthew

Are there any specific questions you wanted to ask about IVA's, or were you just trying to get a general consensus of people's experiences on IVA's?

Matthew

dannyboyracer

im trying to get real life stories of people who have done an IVA and have a property portfolio, are they allowed to keep the assets i.e. houses and on what terms etc.

wherestheend

Hi dannyboyracer

I have been reading your thread as I am looking for similar information, like yourself I had a successful business upto a year ago but like many it went leaving us (me and the wife) with a lot of debt from loans we had got to expand our business and personal guarantees we had given the bank. We have 3 properties our main home, a rental in the uk and a property in Spain.

We have been trying to get an IVA through for 9 months using the equity in our main home and money from friends. I have found my bank the HSBC to be a major problem as they keep changing the goal posts and are requesting the dividend to be a min 40%, we have got a creditors meeting on 08/01/09 but I am sure it is now going to fail as our home is now not worth enough to get to the 40% the HSBC require. We had to withdraw our IVA in September as we could not get an answer from the HSBC (majority creditor) and resubmit, i was told by my IP to go bankrupt and put an offer in to buy the BI in our property in Spain very quick as this is where we want to move, we also want to try and keep our rental property but from what I have read I am not sure it is possible eventhough at the moment it is in neg equity.

I am just about to start my own thread to see if anyone else has the same problem and I will let you know

insider66

Just a quickie - HSBC have in the last few days, changed their acceptance criteria to 20p/£ - hope this helps

wherestheend

Thanks for that I will speak to my IVA company on Monday, they have been the worst and rejected my first prop for 32% in September