Restriction against Land

Captain_wangle

Hi, I am looking for some clarification please...?
My Ex-Wife applied for an IVA late last year. We have a joint mortgage that I’m paying, although we agreed to sell this year.
I have a letter asking me to consent or object to a restriction against the land. I am wondering if this will stop us selling or make it harder to sell the house?
My understanding is that it flags you that this property has money owing to a third party (I.e. her creditors) and this would come out of her share of equity of the house

foxy-stoat

I doubt it will make it any harder to sell the property. Problems will occur when the IP wants more than 50% of the equity once sold. As you and your ex are jointly and severally liable for the 100% of the mortgage debt and 100% of the equity.

How was it bought, joint tenants or tenants in common with equal or unequal shares?

It would be wise to speak with your solicitor before you list it for sale, so you know if all of the property equity is at risk or just your half. You say ex wife, have you finalised the divorce settlement?

PrettyKittyKat

Why are you selling later in the year?

It will not make it harder to sell. The solicitors will simply need to get the IP to sign a form to remove the restriction as part of the sale process. I recall doing this for several clients. Just make sure your solicitors are on the ball and sort this out and don't leave it until last minute!

The important thing is obviously to ensure the IP is aware of the intentions to sell, where the sale process is up to, the expected equity and confirm what % is being paid into the IVA. The solicitors will then likely pay this directly to the IP. Usually it is a 50/50 split of equity and your wifes proposal should confirm the % declared by her when she set up her IVA.