Selling/Renting my property with IVA - Advice please!

texas01

I have had an IVA running for just over three years with no problems. However my personal circumstances have changed and I may need to relocate. My IVA was in the region of £40K. I have a mortgage on the property I live in which at the time of taking out the IVA was worth approximately twice the amount of the mortgage. Obviously this has reduced somewhat over the last 18 months but if I were to sell it I should be able to pay off my £59k mortgage and £10k secured loan with some left over.
My problem is that I am relocating to be with my partner and do not know if I can sell the property and offer the IVA company a full and final settlement from the proceds of the sale. If I am unable to do this would I be able to rent the property out? I'm really not sure as I believe some kind of charge is put on the property preventing me from selling and keeping the proceeds of sale.
Can anyone enlighten me on this please? Either way I would not have any personal income until I can get a job where I am moving to. My partner knows about the IVA but I dont feel I can ask him to pay it for me as it is for debts that my ex-husband left me with when we seperated almost 15years ago. Unfortunately I acted a guarantor on some loans for him and he has gone to ground leaving me with the fallout.
Any advice would be gratefully received.

Derek,_Licensed_IP

There are a number of questions here so I'm going to break my response into a number of sections.
Firstly, most IVA's are based upon a contribution from income. If the income source is interrupted, then so is the ability to keep to the payment plan. And that would put the IVA in jeopardy. So the first piece of advice is to minimise the period that you are between jobs. Ideally, sort your new employment in the new location so that it dovetails with your existing job and relocation. If there is likely to be a period during which you cannot maintain the payments to your IVA, then speak to your IVA provider. They should be able to help you provided the period is short.

Moving onto your home, I'm going to have to make some assumptions. I suspect that your IVA will include an obligation to try to make any equity available upon conclusion by way of remortgage. That's pretty standard. There is unlikely to be a requirement that you sell the property. I'm also going to assume that, given that you already have a mortgage and a secured loan, and that the value of the property will have reduced, then your ability to get further borrowing on the property is pretty well zero.

Your IP and you creditors will know that too. So, if you do sell it, you are doing something you are not required to. That means that you will release value that your creditors would not get any other way. In other words, it ought to be attractive.

Just how attractive will depend upon a number of factors. But the judgement that your IP and creditors have to make is "Do I take the certain sum offered now or do I accept payments from income for the next 2 years instead?" Contact your IVA provider for advice. If the judgement is to make the full and final offer, then your IP will have to call a "Variation meeting" to get your creditors to agree. That's pretty routine but you should be aware that it may take 4-6 weeks to obtain. If that doesn't work then you can consider the rental option. Good luck

texas01

Derek, many thanks for your reply. Very helpful.
If I were to sell the house and offer a lump sum it would be because of possible unemployment. Unfortunately I'm finding it difficult to arrange employment over 200 miles away so it something that may have to wait until I get there. This would be a last resort.
You are correct in your assumptions over the release of any equity at the end of the IVA period. At the moment my mortgage borrowing is in excess of three times my salary and I think this is the reason that I will have trouble in releasing equity. As we know banks (I work for one!) are now very unlikely to lend more than this these days.
In an ideal word I would have a job to go to straight away and would be able to rent my property out to cover the mortgage as I'm not sure I want to sell it at the moment. Would this be allowed under the conditions of the IVA? I'm thinking particularly about the release of equity at the end of it.
Many thanks again for the information.

thecableguy12

please note that a ristriction would have been placed on the property via land reg, only person that can remove this is ya ip, you must contact the prior to putting house on the market, alll this information is in your modifications you signed for:j