Hello in our IVA arrangement under section 4. Particalars of proposal. It says 'it is anticipated we will be unable to realise any equity from the property during the course of the arrangement. The property has therefore been excluded from the individual voluntary arrangement. We have six months of our iva left, should we not be expecting to 're mortgage our property?
You need to check the Chairman's report to make sure a creditor did not modify the proposal at the time. You would have had to have agreed to this but even so check the report.
Thank you all for replying to my question. We have found out today that this was modified in the chairman report. I've today contacted our mortgage company and it looks like the equity in our flat is going to be just over £5000 about £5650. If this is the case will be be asked to 're mortgage and do the iva take the full £5650 or just what is over £5000 as I don't really understand that being under £5000 equity you don't need to 're mortgage but above you do and need to give it all to the iva. Any advice welcome. Thanks Andrew
The chances are you will not be able to re-mortgage and so will, in all probability, have to extend by 12 months instead.
Basically, below £5k it isn't worth the costs and hassle, over that amount it is worth a tug.
Being that close I would find out exactly how your IP is calculating equity as it might well fall below £5k after costs have been taken out --- or the valuation might come in under £5k over the mortgage redemption figure.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Our flat is shard ownership so not sure how the valuation will be done on it. If we were to sell it goes back to the housing association at the price we paid for our share so none profit. Flats in our area are up for sale for around £240,000 we own 30% of our flat. £61,500 was our mortgages and yesterday our Leander said the outstanding balance was £46,658 plus any feed for closing the mortgage which they could not give at the time. We are not in a fixed rate at the moment so not sure what charges there will be added.
I’ve been work it out as £61,500 – 85% = £52,275 then £52,275 - £46658 = £5617 as the equity.
Will they look at this and see if we was able to get a re mortgage the new fee will take us below the £5,000 equity and not ask us to go ahead with the re mortgage?
Also does anyone know any mortgage companies that will give out a mortgage to people with an IVA as I’ve done an internet search and can’t really see anything out there at the moment!
I would definitely get the property properly valued by an estate agent, ideally on a forced sale basis, as 30% of £240,000 gives your share a value of £72,000 which definitely puts you into the bracket of extending the IVA, as you will not be able to remortgage a shared ownership property.
