Iva help!

LouisaGrace1983

Hello! Really hoping someone can help. Me and my husband are looking to buy his parents house from them in the next 6 months. They split up around 2 years ago so only his dad currently lives at the property and his mum is renting a property. They had their house valued a few weeks ago and one company told them to sell it for 185-195k and another valued it at 220k. We are not going through an estate agent but this was just to get a approx value of the property. They still owe 151k on their mortgage!! The problem is that they are in a IVA together but have not declared they are now living apart and as far as I know they are currently having a payment break. Our mortgage broker has advised that we will not need a deposit because they could ultimately gift us this if they are looking to sell for less than the property is valued. We were thinking of taking out 170k mortgage and give them 8k out of this each to repay them for giving us the poetry at a lower value and then they would have 151k also to pay of the mortgage off they owe.

With regards to the IVA is this something that they could do and sell the house for less than its value. They just don't seem to want to phone the IVA company to check and keep telling us the house is nothing to do with it and they can do this. I'm slightly dubious and worry this could jepodise us getting the house.

So what I want to know is:
1) can we take out a higher mortgage to pay out for works to the house and to give his parents some money (so the IVA do not take this off them)?

2) are they even aloud to sell the property in a IVA and for the amount they want to do?

Really hoping someone can give me some advice as I don't want to waste my time going through solicitors etc and paying fees and then being told they are not able to sell the house!! Thanks in advance!

foxy-stoat

I would make the purchase after their IVA has completed, as this will go bad at some point before you complete.


If you have the £16,000 in cash you could see if that is enough to offer a full and final settlement to end the IVA early.

DorisTrousers

Unless the house was specifically excluded at the outset of the IVA, which is highly unlikely, then then it cannot be circumvented in this way.

There will be a restriction at the Land Registry re any sale, so the I.P. will be informed, even if it is not by the owners currently. They really do also need to declare their circumstances, IVA's are based upon affordability and if that has changed then they are not doing themselves any favours by not declaring it.

sourcrates

In year 5 they will be expected to re-mortgage for the benefit of there creditors, if that's not possible, usually an extra year is added to the arrangement.

I would strongly advise you both to read the IVA paperwork as failure to follow proper protocol could be very damaging indeed.