Property

FavDaughter1

Hi, we are waiting to see a money advisor at the CAB re BR/IVA,we hope we can take the IVA rather than BR. i've been reading on the board and found sometimes a IVA seems to enforce selling your home &handing over equity at some point. is this always the case? is it possible to protect against that happening? if so how? because we have a secured loan there is very little equity in the house,other houses like ours in this road are not selling. my husband did get a quote/price from a company who'd buy our home from us quickly but it was at a silly price,over £30,000 less than other houses like ours are up for sale at,we'd be lucky to clear everything let alone relocating costs!

i'm very worried about loosing the house(we're up to date with the mortgage-just),i'm disabled so BR or forced selling of our home would mean it would be impossible for me alone or with my husband to get back into buying a home,we'd never afford it.

also is a IVA always re assessed throughout the 5-6yr time scale they seem to last?
thankyou

FavDaughter1

just found another thread re having to sell home to give up part of the equity. i don't think with our present mortgage and already having a large secured loan that we'd manage a bigger mortgage/loan on present income.

we may have no choice but to sell up.

kns_2

You do not have to sell your house in an IVA that's the idea of having an IVA instead of going Bankrupt,otherwise we would all go Bankrupt,

At the end of year 5 if you have no equity it will end, if you do have equity and cannot get a remortgage then they will extend it for a further year then it will end.

adfax

Hi

As the previous poster has already said, you won't have to sell you house.

Part way through the final year of your IVA you will have to get a valuation of the property. Whether you have to release the equity will depend on a number of factors, and even then, it will depend on your abilty to remortgage. But whatever happens your house is safe!

You will only be expected to remortgage up to 85% LTV. If your house is worth say £100,000 and your mortgage is £85,000 or more then you will be expected to release the equity, and your IVA will end as planned.

If your mortgage is less than 85% LTV then your IP will look at the equity up to 85% LTV.

If your share of the equity is less than £5000 then they again will not bother. So assuming a joint mortgage and a property worth £100K, your mortgage would have to be less than £75K for your share of the equity (up to 85% LTV) to be more than £5K.

It is only at this point that you will be expected to release your share of the equity through a remortgage. Considering you would have been in an IVA for 4 1/2 years this is likely to be impossible, but you have to show you have tried.

If, as is likely, you cannot remortgage, your IVA will simply be extended by 12 months and that will then be it.

If you do find that you can remortgage, there are all sorts of conditions - it cannot increase your mortage payments by more than a certain amount or extend the mortgage beyond its original length (or something like that).

An awful lot of ifs ... but the important things is that the house is safe so don't worry and don't do anything rash like sell it for £30K below its value!

Good luck

FavDaughter1

thankyou both for your helpful replies. i think part of my anxiety is not knowing. hopefully we'll get the 1st appointment with a money adviser at the CAB this week,then we'll know more. once again,thankyou.