IVA Equity Release and Getting Divorced so not in Property

eittolder

Hello all

I'm currently in the last year of IVA and have received notification to get relevant things in order to assess options for equity release.

The house I own with my soon to be Ex Wife, she lives in the mortgaged property with our children. I have been moved out 4 years and I am currently still paying the mortgage.

What are the options? Obviously to satisfy the request for IVA the house should be valued, and identify if any equity and then I apply for a mortgage to release equity. I don't however wish to apply for another joint mortgage or a single one on the property as I don't live there. I also suspect my ex would be completely unwilling to apply for a joint mortgage anyway. Should i just contact IVA company, or proceed apply for Single Mortgage which will get declined and go from there.

National_Debtline

Hi Eittolder and welcome to MSE,


Unfortunately, it won't make any difference that you no longer live in the property and you will have to ensure that you satisfy the terms of the IVA with regard to the equity release.


You will be expected to apply for a secured loan or a re-mortgage to satisfy this clause of the IVA and whilst it is very difficult for most people to do either in this situation, you will need to make sure you have done all you need to. If you cannot find a suitable loan/ mortgage the IVA will simply be extended (as it is for most people). But the IVA provider must be happy that you have fulfilled this clause appropriate, otherwise they could deem the IVA to fail and that puts you at risk of bankruptcy (and the property at risk of being sold if there is equity).


The re-mortgage would only be against your share of the equity if it is an IVA in your sole name. Good luck,


Laura
@natdebtline