Equity Release

[allan.f]

I have a condition to release equity in the 4th year.
How does this work,will I have to remortgage?I am a co-owner and the other person is not tied into my IVA so I assume there will only be half of the equity available.Will they want all my available equity or will they settle for a lower sum?I am concerned that in the 4th year I will be too stretched to increase my outgoings to service extra borrowing.I don't want to consider a sale as an option.
Allan

[MelanieGiles]

Allan - I've answered this on another post for you!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[allan.f]

Hi Melanie,
The co-owner does know about the equity release that's no problem.Do I understand correctly that that equity release would be raised to coincide with the final paymment into the IVA
Allan

[MelanieGiles]

Hi Allan

It is generally raised during the final year, and these days the creditors allow you to reduce your payments during that period to account for the extra borrowings. To be sure check your proposal document and chairman's report for the actual wording of this requirement.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk