Selling my home.

dazzadub

I'll try keep it short.

Me and ex brought house and we split up. She moved out with her new fella. She racked up debt and ended up in an IVA.

We are at point we need to sell the house as we are just renting it out and need to cut ties.

My ex is telling me her IVA payment will be taken before I get any money.
The IVA is in her name and has nothing to do with me 

Equity is 55k approx

Her IVA is 23k  she is wanting the iva to be taken first and rest split 50/50 which of course I don't agree with.

Whats right here ? 

Surely my half of the equity is paid to me before her iva is taken.


Advice please.

teachfast

I'd say it depends if her debt is secured on the house or not, but others may know better than me. 

AdrianC

She's a cheeky one, trying to get you to cover £11,500 of her debt!

The one time it could be an issue is if the IVA is more than her half of the equity - her creditors would be losing all security, with debts outstanding. But that's not an issue here - her £27,500 equity should cover her £23,000 IVA quite happily.

The house is currently let? Are there tenants in there now? Is she receiving her half of the profits of your shared business...?

dazzadub

Her equity is around 27k and her iva is 23k. 

The debt isnt secured against the hoise, I have checked this and there is nothing on the house at all. It is personal loans, credit cards and hire purchase is what her IVA is for. 


The house is let to my friend and I only charge him rent to cover the mortgage and insurance and I make no profit  she doesn't get anything from the rental. 

Slithery

dazzadub said:

The house is let to my friend and I only charge him rent to cover the mortgage and insurance and I make no profit  she doesn't get anything from the rental. 

Irrelevant to the question in hand but you do realise that you stilll need to declare the income to HMRC and pay tax on it?

dazzadub

Slithery said:

dazzadub said:

The house is let to my friend and I only charge him rent to cover the mortgage and insurance and I make no profit  she doesn't get anything from the rental. 

Irrelevant to the question in hand but you do realise that you stilll need to declare the income to HMRC and pay tax on it?

Yep fully aware and this is done. And has nothing to do with what's being asked

AdrianC

dazzadub said:

Her equity is around 27k and her iva is 23k. 

The debt isnt secured against the hoise, I have checked this and there is nothing on the house at all. It is personal loans, credit cards and hire purchase is what her IVA is for. 

Then there's your answer. The conveyancing solicitor should disburse the equity 50/50 before her IVA gets paid by her from her half.

The house is let to my friend and I only charge him rent to cover the mortgage and insurance and I make no profit  she doesn't get anything from the rental. 

So will you be selling with sitting tenant? You do know she's just as much your mate's landlord as you are, right?

dazzadub

Fully aware. But she left that to me to organise and manage. The tenant will be leaving  on completion as per the terms 

swingaloo2

dazzadub said:

Fully aware. But she left that to me to organise and manage. The tenant will be leaving  on completion as per the terms 

The tenant needs to leave before completion. No one is going to complete on a property that is not vacant.

rik111

Slithery said:

dazzadub said:

The house is let to my friend and I only charge him rent to cover the mortgage and insurance and I make no profit  she doesn't get anything from the rental. 

Irrelevant to the question in hand but you do realise that you stilll need to declare the income to HMRC and pay tax on it?

Theres always one......

AnotherJoe

swingaloo2 said:

dazzadub said:

Fully aware. But she left that to me to organise and manage. The tenant will be leaving  on completion as per the terms 

The tenant needs to leave before completion. No one is going to complete on a property that is not vacant.

Pretty much everyone completes on a property that becomes vacant AT completion, not before it.

Of course most sensible buyers would want / insist on vacancy before exchange if there's a tenant, but its not necessary unless the lender (if there is one) makes that a condition.