IVA - equity release not usual question
Options
Kingsh_2
Posts: 24 Forumite
Hi all, not sure if anyone can help but...
Basically, last year my Iva was due to end subject to equity release clause. Anyhow, the mortgage is joint but the ex, as per divorce 7 yrs ago, is not entitlement to the equity or any thing regarding the house upon £50 per Month for 6 yrs (at time of divorce the equity was negative and I couldn’t remortgage due to Iva BUT if I could then both parties would be liable to pay half the negative equity etc) and therefore the equity is all mine pending remortgaging at the end of Iva. I provided the house valuation and outstanding mortgage to the Iva company and I had £50k equity.
I couldn’t remortgage at the end of Iva for obvious reasons and I also enquired about the amount I would pay back IF I could remortgage as I technically have 100% equity (like explained above regarding divorce) even though the mortgage was still joint with the ex , as per divorce agreement. However, The Iva company still did their calculations based on 50% share which I didn’t really notice or pay attention to at the time and paid for further 12 months.
12 months later and after paying the further 12 months based on the equity release clause, the Iva company are tidying up loose ends before my completion and noticed this conversation I had last year with them about the divorce and having 100% share, and not 50% as originally calculated. Slightly annoyed as it’s now going to a supervisor who may address this with my creditors.
Realistically what can they do because I argued if it’s either 50% or 100% then I would still be bound to the release clause of 12 months. And I still can’t remortgage now anyhow as the Iva is not completed. I am not going in for a 9th year and will argue this point above.
Confused.
Any advice. There may be some details missing but the most of it is there.
Basically, last year my Iva was due to end subject to equity release clause. Anyhow, the mortgage is joint but the ex, as per divorce 7 yrs ago, is not entitlement to the equity or any thing regarding the house upon £50 per Month for 6 yrs (at time of divorce the equity was negative and I couldn’t remortgage due to Iva BUT if I could then both parties would be liable to pay half the negative equity etc) and therefore the equity is all mine pending remortgaging at the end of Iva. I provided the house valuation and outstanding mortgage to the Iva company and I had £50k equity.
I couldn’t remortgage at the end of Iva for obvious reasons and I also enquired about the amount I would pay back IF I could remortgage as I technically have 100% equity (like explained above regarding divorce) even though the mortgage was still joint with the ex , as per divorce agreement. However, The Iva company still did their calculations based on 50% share which I didn’t really notice or pay attention to at the time and paid for further 12 months.
12 months later and after paying the further 12 months based on the equity release clause, the Iva company are tidying up loose ends before my completion and noticed this conversation I had last year with them about the divorce and having 100% share, and not 50% as originally calculated. Slightly annoyed as it’s now going to a supervisor who may address this with my creditors.
Realistically what can they do because I argued if it’s either 50% or 100% then I would still be bound to the release clause of 12 months. And I still can’t remortgage now anyhow as the Iva is not completed. I am not going in for a 9th year and will argue this point above.
Confused.
Any advice. There may be some details missing but the most of it is there.
0
Comments
-
Anyone....?0
-
Sorry for the lack of replies, the technicalities of this may be worth posting on the Mortgages board?0
-
Hi,
I don't see what your IVA Company is trying to achieve.
An IVA is for 5 years worth of monthly payments, in addition to which one of two things happen.
You either
a) release equity from your property by the form of a re-mortgage to pay in to the IVA
or
b) Continue to pay one more years instalments in to the IVA.
The issue with a) is that these days it is very difficult to achieve, the FCA rules on lending since the financial crash are highly unlikely to bring about further lending to someone who is still formally insolvent (in an IVA).
Hence the vast majority of IVAs continue for a further year instead of a remortgage.
Considering that you CANNOT remortgage then the 1 year extra payments rule applies - so I cannot understand what on earth it matters as to whether you have 50% equity or 100% equity - as it has already been established, as usual, that you cannot release it.
Wait for their response but be ready to make a formal complaint to the IVA Company (who is your IVA Company?) with a view to taking that complaint to the Insolvency Service.
I'll find the process for that shortly.
DDDebt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***0 -
Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***0 -
Good advice, and great post from DD.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards