hello again. Got another question: When I started my IVA last year there was very little equity in the house. I had it valued last week and it seems to have gone up: enought to pay off all my debts. I would like to end the IVA early if possible. But who would I go to to get eqiuty release? Most places dont touch you if youre in an IVA.
You would need to try and remortgage to release the equity. Unfortunately I don't think you will be able to whilst in the IVA. You could try your mortgage provider or a whole of market broker but I wouldn't bank on it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Cathy. From no equity to enough to pay your debts off within a year seems like an unlikely rise in a still slightly falling market. Might I ask who did both the valuations.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You would need to try and remortgage to release the equity. Unfortunately I don't think you will be able to whilst in the IVA. You could try your mortgage provider or a whole of market broker but I wouldn't bank on it.
Hi Kallis, thank you for that. In that case though, how will I be expected to release equity towards the end of my IVA term then?
The chances are that you won't and will be expected to pay an extra 12 months in lieu of that equity.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Foggy wrote:
Hi Cathy. From no equity to enough to pay your debts off within a year seems like an unlikely rise in a still slightly falling market. Might I ask who did both the valuations.
Hi Foggy, Thanks for reply. It was just 2 local estate agents. They didnt know why I wanted the valuation. I did think it was a bit ambitious though, since a very similar property down our street went for £170 in October 2010. I was considering the merits of bankruptcy recently since I lost my job in September and am trying to pay my IVA on £67 a week. The IVA company gave me a payment break of 3 months but I am now expected to resume payment by the end of april or the iVA will fail. Terrified!!! Struggling to get a job where my experience lies: financial services, and theres not much else about.
Hi Cathycat - I am with foggy on this the valuations dont seem right - Was this priced for a "quick sale" ? You need to speak to your IP about not being able to get a job - then look at your options? I dont know enough about property in bankruptcy but rather than leave it you need to "Look at all your options"
Often estate agents will overvalue a property in the hopes that the seller will sign up with them, then advise the seller to accept more realistic offers once they have you under contract.
Currently in the SW asking prices are around 10% higher than actual sales value realised.
However, at this stage, it's probably a moot point as, as Jan says, you are unlikely to be able to release the equity in any event.
If you follow the BR route the property will be valued by the OR in just over 2 years time and the question of equity will be addressed then. Best, as Ginger says, to have a full and frank chat with your IP.
Best of luck, let us know how things go.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi
Would you consider selling your property and using the funds as a full and final settlement ? You would be allowed to retain enough funds to secure rented accommodation
Regards
