Can I borrow against a property I've inherited

[Laura-lee]

Hi, I am in the middle of getting my name placed on the land registry as owner of a property and small amount of land that I have inherited through next of kin. I am unable to sell the property as my grandparents live there. My question is could a borrow against it whilst in my IVA? Ideally I would like to borrow enough to pay off our IVA (we owe 4k over next two years) and enough to go to Australia for a year... As said before we have two years left in our IVA...

[Shining]

Hi, does your IP know of your inheritance? If not they will need to know as it could be this is classed as a windfall within your IVA. Worth talking to them in the first instance.

[Laura-lee]

Hi, no I haven't I formed them yet. I plan to once the property is in my name and I have tw land registry form to prove it.. What do you think they'll expect me to do?

[Shining]

Hi again I don't know I'm not an expert, but will keep this bumped up and hopefully someone in the know will be able to respond to your post.

[Laura-lee]

I've googled it a bit and it seems they will see it as a windfall and expect me to pay all of what we originally owed back...Don't see how I'd be able to do this though as myself and my half brother can't sell the house as our grandparents live there. As it's not actually in my name yet I'm not too worried but it should be in myself and my half brothers name once the probate has all been sorted.

[ClareSilver]

It's unlikely that you will be able to obtain a mortgage whilst you're in an IVA anyway. You do need to speak to your IP to see what he/she thinks.

You may be faced with an extra year of contributions in lieu of the property but that will have to be decided by your creditors by way of a variation meeting.

[MelanieGiles]

Your inheritance is a windfall, and will likely need to be fully disclosed and accounted for to your IVA Supervisor - but do check the terms of your IVA proposal to be sure.

Your IP will need to see a valuation of your share of the property, and then may need to revert to creditors to seek directions. It is possible that creditors may allow charges to be registered against your share of the property, to sit until it is eventually sold - but you are best getting advice from the horse's mouth, and I would have that chat sooner rather than later.

[Shining]

I hope that the experts reply has helped and that once you inform your IP things can be clarified. x

[Laura-lee]

The property can't be sold until my grandparents pass away, which is unlikely to be soon, unlikely to be in the next 10 years even! I've read somewhere that even when we've paid the ova off the creditors may still expect some of the money back once I finally sell it, even if it's years after??