Selling House less than a year in

[dinosaur17]

Hi not sure if this is in the right place so feel free to move

I am looking for some advice. My partner and I have both have IVA's. We both live in a property covered by a mortgage in my partners name. We are considering re-locating because of work issues for my partner and I am going back to university this year. We are looking to re-locate and potentially release the equity in the property to pay a final settlement to the IVA company. Im not yet sure if there is any equity in the property so if someone could let me know the right track i'd be most grateful.

Has anyone done this successfully or is it a bit of a lost cause?

Regards.

[ginger3232]

Dinosaur - welcome to the forum

First thing is get a few valuations done - so you have an idea of how much equity you have - deduct all your selling/legal/advance rent/moving cost etc etc - the end figue will be what you have to offer the IVA pot. A restriction will be on your property so you wont be able to sell without your IP persmission.
once to have you valuations done - discuss with your IVA company

[dinosaur17]

Thanks for your advice. Is it likely they will let us sell seeing as we are only a few months in to the agreement? I suppose it may be in creditors best interest to get their money back sooner rather than later would it not?
Also our IP mentioned about our credit rating returning to "normal" after the end of the IVA, the reason I ask is because I am considering remortgaging if the whole process goes to plan.

Many thanks

[Michael Peoples]

Your credit rating will return after 6 years not when the IVA is over. A remortgage is almost impossible so perhaps think about renting out the property and maintaining the IVA payments if there is not enough to release for full and final settlement.

[dinosaur17]

So 6 years regardless of whether they accept your settlement?

[ginger3232]

Yes dinosaur - unfortunately !! 6 years minimal from the start of your IVA

[Foggy]

Hi. The 6 years for "clearing up" your rating ia dated from the acceptance of the IVA, regardless of when settled.

[dinosaur17]

Ok thanks. We have an interest only mortgage, so im not too sure what happens with this if we were to sell up. If it were transferable to a new property, I may not have to worry about remortgaging or getting a second mortgage (if that is even a thing )

[ginger3232]

Porting (transfer) only allows the intrest rate and conditions to transfer - as it would be secured on a the new property - you would still be subject to all the credit checks/fees/legal procedures etc