as well as owning my own home (mortgaed and no equity) i have an investment property which again has little or no equity but earns me a small income. if i entered into an IVA would i be foreced to sell the investment property - not a good option as it will cost money to sell, incure penalty fees to settle the mortgage and possible require cash from myself to settle the mortgae if there is negative equity (not possible as i dont have the cash). Do i actually need to metnion this investment when discussing an IVA as it has little or no equity?
Welcome - you will need to declare the additional property from the outset, however if the rental on this property covers any mortgage left on it or outgoings it is unlikely that you will be forced to sell it. However you may have to release equity from both properties in year 4 of your IVA for it to complete by end of year 5.
My advice would be to speak with several IP's for professional advice.
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Lulu is correct. The property must be taken account of in the IVA, and any surplus money - subject to you paying over any tax due to HMRC must be included as your income.
You will also need to consider what you would do if you lost your tenant, as creditors would not agree to supplement property investment losses, at which time you may have to consider handing the property back to the lender if there is little or no equity available for creditors.
