MelanieGiles wrote:
An equity release provision for a shared ownership property should never have been included or accepted, as no mortgage lender will entertain a re-mortgage unless you borrow sufficient to buy out the co-owner's share.
Given the age of your IVA, I doubt that you have the provision to pay out the equity over a further year without a specific resolution from your creditors. Best to check this out with your IP directly just to be sure.
Hi, Melanie i'm sorry but i don't quite understand what you mean . This is the e-mail i received from my IP.
Further to the equity release pledged into the arrangements, I can confirm that the requirements were as follows:
In the fourth year of the Arrangement the property at *****, ******* shall be professionally valued and fifty percent of my equitable interest shall be realised and paid to my Supervisor for the benefit of creditors before the end of the term of the Voluntary Arrangement. Alternatively, at my option, the Arrangement can be extended to allow an equivalent sum to be paid by way of ongoing contributions during a period of up to twelve months. My Supervisor shall register a restriction at HM Land Registry to protect creditors’ interests.
I would be very grateful if you could send us a copy of the valuation obtained and a recent mortgage redemption statement confirming the numbers you have detailed.
I further note the comments of the Housing Association which prevent you from releasing any equity.
I have discussed the situation with Mark, and would like to highlight the further option of extending the IVAs for a year to allow for the equivalent sum to be paid in.
The numbers you have provided suggest that the equivalent sum would be approximately £8,000 over a period of 12 months.
If this is not an option, I would be very grateful if you could complete the attached monthly income and expenditure sheet, reflecting your circumstances, and we can ask creditors to vary the above terms and propose an extension of 12 months at a more affordable contribution.
Kind regards