Equity release

[dude]

I am new here so please excuse me if this question has been asked before.

I am 2.5 years into a 5 year IVA and we are just about to complete on our first house ( thanks to a council incentive scheme that paid the deposit ) i have spoken to my IP and she said that although there was no equity release written in when i first started the IVA ( as i did not own my own house ) she would have to let the creditors know and it would have to be written in.

Is this what normally happens only i do not want to get a mortgage now and then have to remortgage before the fixed rate period ( 2 years ) has expired.

Any advice would be gratefully received[?][?]

[MelanieGiles]

Hi dude and welcome to the forum

I do not agree with your IP's comments, and do not believe that an equity release is relevant to you as you did not own a property at the time you entered into the arrangement. She ought to advise your creditors that you have bought your property, but this does not make them entitled to claim any of the equity - which in any case will be subject to clawback for the first three years.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[dude]

Thank you for your reply so quickly.

Sorry if i sound silly but i need to get this straight before i speak to her.

Basically she can tell the creditors that i am buying a property but then do i tell her that i do not want the equity release or do i tell her that it is not appropriate as i did not own my house at the begining.

I do not want to risk the IVA as i only have until Dec 2009 to pay so i have come so far.

What if she mentions that she is including the equity release can i refuse this.

[Adam Davies]

Hi
I can,t see how this is relevent to your creditors as it was not included in your original IVA.The only way that they can include it is as a post aquired asset but as Melanie states you will be subject to a clawback.
Challenge your IP on this,are you sure that you actually spoke to your IP or was it one of her staff ?
Did your IP give permission for your mortgage and if so did they raise the subject of equity release at the time ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp