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    • gash
    • By gash 12th Apr 18, 4:38 PM
    • 23Posts
    • 2Thanks
    gash
    IVA and a house in Trust
    • #1
    • 12th Apr 18, 4:38 PM
    IVA and a house in Trust 12th Apr 18 at 4:38 PM
    Iíve got such a complicated issue, Iím hoping someone can help.

    I am 2 years into my IVA, and I have just been left a house in my Uncleís will in a ĎTrustí. The house is left to me and my 9 year old daughter. The ĎTrustí lasts 10 years.

    The house belonged to my uncle who was very old when he died (97). The house is in a dire state of repair. Pretty much everything would need to be done to modernise it. Bathroom and kitchen must be 30 years old. Old back boiler and radiators must be 30-40 years old at least. Needs rewired etc etc. It is a large 3 bedroom house, but in a very bad state.

    As Iím in an IVA obviously I cant borrow money to renovate it. I canít sell it because itís in a trust for 10 years. It seems I can only live in it while in my IVA, and in 4 years time once the IVA is over, attempt to get a small mortgage to cover the costs of renovation.

    Does anyone have any other ideas? Is there something Iím missing?

    Also, Iíd be interested to know how the IVA company (Stepchange) would feel about this property? Its technically not mine so I cant turn it into enough money to pay the balance of my IVA which ideally I would like to do! But I donít know how to approach telling them about the situation.

    I know itís a house Iíve been given which sounds great, but when you donít have any cash to make it habitable, and it couldnít possibly be rented out in itís current state, it is actually causing me a lot of worry.
Page 1
    • antrobus
    • By antrobus 12th Apr 18, 4:44 PM
    • 15,513 Posts
    • 22,146 Thanks
    antrobus
    • #2
    • 12th Apr 18, 4:44 PM
    • #2
    • 12th Apr 18, 4:44 PM
    I am 2 years into my IVA, and I have just been left a house in my Uncleís will in a ĎTrustí. The house is left to me and my 9 year old daughter. The ĎTrustí lasts 10 years.
    Originally posted by gash
    What are the terms of the trust?

    Did your uncle know you were in an IVA? If so, that might be why there is a trust. Was the will drafted by a solicitor; they should be able to explain.
    • gash
    • By gash 12th Apr 18, 4:56 PM
    • 23 Posts
    • 2 Thanks
    gash
    • #3
    • 12th Apr 18, 4:56 PM
    • #3
    • 12th Apr 18, 4:56 PM
    The terms as far as I know are simply that it can't be sold and the Trust lasts for 10 years. Uncle didn't know I was in an IVA. He just didn't want his house sold quickly. He had a bit of an obsession that whoever he left it to actually lived in it.


    I do plan to speak to a solicitor, but there's more money I'll have to pay for advice which I can't really afford.
    Last edited by gash; 12-04-2018 at 4:58 PM. Reason: additional info
    • DorisTrousers
    • By DorisTrousers 13th Apr 18, 11:07 AM
    • 499 Posts
    • 288 Thanks
    DorisTrousers
    • #4
    • 13th Apr 18, 11:07 AM
    • #4
    • 13th Apr 18, 11:07 AM
    My advice would be to speak to the Supervisor to discuss the options regarding the property and to speak to the solicitor who drafted the will/trust to obtain further details.

    The supervisor has discretion to allow a debtor to borrow in excess of £500 so that could be an option to make the property habitable, if it is in the interests of the IVA.

    Once a small number of renovations have been carried out, you could live in it. If you live in rented accommodation you would reduce your expenditure which can be paid towards paying off the new debt and paying more into the IVA. Alternatively, you could rent the property out and receive the rental income to pay into the IVA, less any tax liabilities.

    Either way, it definitely has to be declared.
    • gash
    • By gash 13th Apr 18, 11:29 AM
    • 23 Posts
    • 2 Thanks
    gash
    • #5
    • 13th Apr 18, 11:29 AM
    • #5
    • 13th Apr 18, 11:29 AM
    I have taken some advice this morning from the solicitor who prepared the Will, and there's a possibility the 'Trust' is mine to 'break'. So if that's the case I could sell the house, pay off my IVA in full, and buy a smaller house of my own with what's left. Here's hoping!!!!!


    So, regards paying my IVA in full. I have heard horror stories that if you are able to pay the IVA off Stepchange will add several thousand pounds to the balance in fees. Can anyone give me a ball park figure (just approx.), how much I might pay back in total. Bearing in mind I initially owed around £23,000 and have paid back in monthly payments approx £4000 up to now. I have 47 payments left to make.


    I'd just like to be armed with some info before I'm in a position to ask for the settlement figure from SC.
    Last edited by gash; 13-04-2018 at 11:31 AM. Reason: spelling
    • DorisTrousers
    • By DorisTrousers 13th Apr 18, 3:06 PM
    • 499 Posts
    • 288 Thanks
    DorisTrousers
    • #6
    • 13th Apr 18, 3:06 PM
    • #6
    • 13th Apr 18, 3:06 PM
    Hi,

    You will pay back the full capital, plus fees accrued to that point. Read your Chairmans report to check how much the nominees fee is. This is likely to be a minimum of £1,000 but may be higher. You also need to check how much the supervisors fee is, usually a % of the payment made.

    Creditors could, potentially, apply statutory interest but they usually agree to waive that. It isn't really a case of Stepchange adding fees, more that the fee payer switches from creditors, who forego returns to pay the cost of the IVA, to the debtor.
    • gash
    • By gash 13th Apr 18, 3:15 PM
    • 23 Posts
    • 2 Thanks
    gash
    • #7
    • 13th Apr 18, 3:15 PM
    • #7
    • 13th Apr 18, 3:15 PM
    Hi,

    You will pay back the full capital, plus fees accrued to that point. Read your Chairmans report to check how much the nominees fee is. This is likely to be a minimum of £1,000 but may be higher. You also need to check how much the supervisors fee is, usually a % of the payment made.

    Creditors could, potentially, apply statutory interest but they usually agree to waive that. It isn't really a case of Stepchange adding fees, more that the fee payer switches from creditors, who forego returns to pay the cost of the IVA, to the debtor.
    Originally posted by DorisTrousers

    Great, I understand most of that. Just one last question. Will the £4000 I've already paid be deducted in any way from final figure? Thanks again for your help.
    • PrettyKittyKat
    • By PrettyKittyKat 13th Apr 18, 8:10 PM
    • 337 Posts
    • 383 Thanks
    PrettyKittyKat
    • #8
    • 13th Apr 18, 8:10 PM
    • #8
    • 13th Apr 18, 8:10 PM
    Great, I understand most of that. Just one last question. Will the £4000 I've already paid be deducted in any way from final figure? Thanks again for your help.
    Originally posted by gash
    yes what you have paid is taken into account.

    You need to ask for a 100p in the £ figure. They may not be able to give you this straight away, they may need to go away and get an IP to work it out/check it. This figure is the total debt owed + nominee fee + supervisors fee (typically 15% of any payments made) - payments made to date. Any payments you make after this figure given will be taken off the figure (but clarify this when you are told it). You should also ask whether all claims have been received from the creditors, which is when they confirm the debt owed, as the figure could change if a creditors claim comes in higher or lower than you declared when starting the IVA (this is usual and not a concern unless it is significantly different).
    • gash
    • By gash 13th Apr 18, 8:40 PM
    • 23 Posts
    • 2 Thanks
    gash
    • #9
    • 13th Apr 18, 8:40 PM
    • #9
    • 13th Apr 18, 8:40 PM
    Thanks so much x
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