Home Moving and Improvements

[ollyrharness]

Hello

If during an IVA you have to move, does all the equity released from the sale have to be used as a deposit for the new one. If any improvements need to be made, for example a new kitchen, central heating or bathroom, where would the money come from?

[MelanieGiles]

You would need to check this out with your own IP as it would depend upon the terms and conditions of your IVA, and whether your request was reasonable. Moving house during an IVA is rarely a good idea, given that it is bound to disturb the arrangement in some way, especially if you have a fourth or final year equity release provision.

[abc]

Speak to your IP, but you are likely to be able to move if all your equity is rolled over to your new property. But how will you fund the costs of moving? If you have a valid reason for moving then any use of the equity will need a variation meeting and the approval of your creditors. Also, if you are obtaining a larger mortgage you will need your Supervisor's premision and also how will this impact on your monthly voluntary contributions?

I have assumed that your property is subject to the IVA meaning that you have to release the equity at some point? If you have offered creditors say six additional months in lieu of equity then you may be free to use the equity. speak to your IP and if in doubt take legal advice.