really want just to sell the house and rent

[hazel.s]

i already have an iva but am really struggling with mortgate payments and increased charges by iva i really want just to sell the house which has very little equity in it at the moment and i have seen a rental property i can afford can i just call the iva company and tell them that i am selling the house but i do know i have a 4 year clause tied to the iva

[pbeck]

I am sure that you will be allowed to sell the property, even if you get virtually nothing back for it.

The 4-5th year equity release clause only covers thoses cases where the debtor keeps their property through the IVA and there is enough equity to release, typically you would have to remortgage up to 85% loan to value e.g. if your house was worth £100,000 you would have to remortgage up to £85,000, if the existing mortgage was £75,000, then that would mean after the existing mortgage is redeemed £10,000 equity would be released into the IVA. As you say though that your home has very little equity at present and with falling house prices it is probably unlikely that you would be caught by the equity release clause even if you were to hang on to it.

[MelanieGiles]

Hi Hazel

You really need to discuss this with your IP to see if they believe this is sensible for you. If you make a saving on rental compared to what you are currently paying on your mortgage, then your IVA payments will increase accordingly, but this would help to counter the loss of opportunity for your creditors if they are required to waive the fourth year equity release.

I fear that there will be an awful lot of people in this situation over the next few months, and there is no point in putting yourself under undue pressure unecessarily.

[plasticdaft]

I am sure if its a choice of iva failing or creditors agreeing to not getting equity in 4th year they will settle to keep IVA running just with maybe a little bit extra on top,payments wise.