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IVAs and Shared Ownership
GardenGirl
Posts: 2 Newbie
Is there anyone out there who can advise me please? I'm about to make the last installment of a 5 year IVA, but I still don't know what will happen about the equity I have in a shared ownership property.
During the 4th year I had to get the property re-valued, and there was around 40k equity. This would have covered the whole remaining debt so I had wanted to end the IVA early at that stage by remortgaging, or getting a secured loan, but have found that people doing shared-ownership are not considered to be homeowners by banks and building societys and so they will not consider them for equity release. My own building society explained that they will only consider remortgages for shared owners who were planning to increase their share of the property.
Using brokers I was able to find only one (expensive) company that would consider offering me a remortgage, but they pulled out of the market whilst my remortgage was going thorough.
My housing association will not consider buying back any of my shares in the property.
Would I be right in assuming that my only option will be to lose my home after all, as it seems that the only way I can keep to the agreement is to sell up?
When I queried this clause in the agreement initially the supervisor assured me that remortgaging would not be a problem. I could not get a straight answer out of them last year about what to expect this year.
I wish I had heard of this site 6 years ago!
During the 4th year I had to get the property re-valued, and there was around 40k equity. This would have covered the whole remaining debt so I had wanted to end the IVA early at that stage by remortgaging, or getting a secured loan, but have found that people doing shared-ownership are not considered to be homeowners by banks and building societys and so they will not consider them for equity release. My own building society explained that they will only consider remortgages for shared owners who were planning to increase their share of the property.
Using brokers I was able to find only one (expensive) company that would consider offering me a remortgage, but they pulled out of the market whilst my remortgage was going thorough.
My housing association will not consider buying back any of my shares in the property.
Would I be right in assuming that my only option will be to lose my home after all, as it seems that the only way I can keep to the agreement is to sell up?
When I queried this clause in the agreement initially the supervisor assured me that remortgaging would not be a problem. I could not get a straight answer out of them last year about what to expect this year.
I wish I had heard of this site 6 years ago!
0
Comments
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Hi
We recently purchased a SO. Unfortunately I can't give you any advise because I know very little about IVA but coupled with SO I appreciate that it will not be plain sailing. I also imagine that you are not talking about an insignificant final payment either.
Hope someone with more knowledge comes along soon.
Best of luck.0 -
Tell your IVA people that you can't find a way to release the equity. Either they will know that this can happen and suggest someway it can be done or they may accept a requirement that you repay the equity release when the property is sold.
Seems unfair that this is thrown at you in year 5. Where is the benefit in having kept to the plan for 4 years?I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I agree with silvercar - your IVA 'practitioners have received a sizeable fee from your IVA payments. Why have they kept this 'bombshell' till now. It seems that you will be no better off than if you had opted for bankruptcy.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0
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