need to sell my flat and move to a new town

[ctr]

I am currently in an IVA of about 5 months now, and have a mortgage. I have recently gained a new job, which will mean a pay rise and the need to sell my flat and move to a new town. I wish to increase my mortgage with Northern Rock to buy a property in my new place of work. Will I be able to do this, or should I stick to my mortgage amount that I currently have and tranfer it to a new property? I will be moving from London to the Midlands so am expecting to make a profit on the sale. What should I do next?

[MelanieGiles]

Hi ctr

What provisions were there for the treatment of your property within the IVA. If you have the normal requirement to have it revalued in the final year and raise equity, then this provision can be transferred to your new property, so long as all of the profit from your sale is invested in the newer property.

You really need to check the terms of your IVA and discuss this further with your own Supervisor. There are also other implications of your move - in terms of the increased salary, which will be taken into account at your annual review.

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

[ctr]

Thanks for your reply, I've been in contact with my IVA supervisor who states that it's really up to the creditors whether they decided to use any profit made from the sale. However the most likely outcome is that they will take the money. This leaves me in a difficult situation as although I have a mortgage that can be transported to another property, I still have to provide a 5% deposit. I'm waiting to speak to one of the managers of my IVA company to see whether the creditors will allow some of the sale profit to be used for the new property, but if this is not the case I will have to some how obtain this deposit money or otherwise go back to renting. My concern with going back to renting is that I have a secured loan with my property, so I really don't know what will happen to that once I go off the property ladder (It was decided in my IVA that the secured loan would not be included).
I really thought I was doing the right thing by accepting this new job, as I thought I would be better off as I get paid a grand more than I'm on now, and would also be living in the Midlands, as opposed to London. However at the moment I feel I've made a complete mess of things!

[MelanieGiles]

Hi ctr

I am still unsure as to how the property was treated within the IVA - did you have a 4th year revaluation provision, were you raising anything from the equity and offering it to creditors. Can you clarigy this point please, as my advice will be tailored to match your exact circumstances.

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

[neverending]

Hi
Quote"My concern with going back to renting is that I have a secured loan with my property, so I really don't know what will happen to that once I go off the property ladder "
Your secured loan will have to be redeemed when you sell your property. Also if you sell and buy at the same time your secured loan will have to be redeemed but you can simply take out a fresh mortgage to cover your existing mortgage ,secured loan and moving fees.
I would have thought that if you can keep your mortgage payments the same then your IP and creditors would be happy for you to move house,so long as you are paying them the agreed monthly amount and are not cashing in too much of the equity[other than moving costs].It would be sensible to buy a similar priced property to the one you are selling unless you want to release some equity to your creditors and pay more monthly due to the lower mortgage payments and higher disposible income.

[ctr]

Thankyou both for your replies. My situation is made a bit more complex as my property has a second charge on it, as it's part of the Keyworker living scheme to allow teachers, police officers etc. to get onto the property ladder in London. I've checked with my IVA supervisor and have come to the conclusion that for the time being I need to stay put, pay into my IVA a bit more before I make the move, as at the present time I would actually end up owing money if I sold now.
I would not have enough money to clear the secured loan, pay a lump sum into the IVA, as well as give the government back their financial share as I would no longer be entitled to the Keyworker Equity Loan as I would no longer be living in London with the new job.
I have now declined my new job offer and am remaining in my current employment. For the time being, while i'm in my IVA, i'm tied to my property and also to my job. This new job would have allowed me to get a slight pay rise and be closer to my family in the midlands, but it's just not meant to be. At the moment I do feel very down about the situation,and although am grateful that the IVA is a way to become debt free, I still feel trapped by my current circumstanceas and disappointed that I cannot take up this new career opportunity.