I have a complex equity problem. My IVA started in June 2012. I seperated from my wife the year before and left the home we own together. It was included into the arrangement that once my ex was in a position to pay equity which was estimated at £10, 000 I would need to pay into the IVA. It also stated it was anticipated I would pay monthly as this was how I expected to receive payments.
I will cut a long story short. She really struggled to get a remortgage offer but eventually did for the mortgage amount. The equity has been worked out at £10, 800 but I will only receive £100 per month.
A RX1 restriction is placed on the property by payplan who will not remove it until this is agreed. I keep doing everything I am asked and then they want more. Now they want to receive all the money at once which is impossible. I cannot raise this by any means. I have offered to pay all payments I receive. Is this reasonable or can they insist I pay it all now?
Now the mortgage company have run out of patience and the offer has expired. To be fair they made it 2 months ago. I warned payplan about this but have refused to remove the restriction which means nothing can move forward. All the while the language they used insist the situation needs resolved urgently. I would really appreciate views and comments as I have become so despondent. Please help! Many thanks in advance.
I have never been I this position so please forgive my ignorance but if ex remortgages for £10k for your equity surely you get that when the mortgage goes through? How is it she has a remortgage and is making payments? Again, apologies if it's a daft question. I must be missing something.
Last edited by relieved33 on Fri Oct 10, 2014 11:58 pm, edited 1 time in total.
I am confused on a number of counts. Firstly we wold normally exclude a property in a separation/divorce and let a judge make a determination as to the equitable split. Secondly if there is a remortgage in place why would you only be paid £100 per month for your interest and not the full amount?
Thank you for your replies and apologies for the delay. The situation is she is only getting a remortgage for the actual mortgage amount and not with the equity as well as this was not possible. As the money cannot be raised any other way I had to accept the monthly payment in principle as the only option as I don't want to force a sale. After weeks of going back and forth with payplan they are now going to have a creditors meeting to extend the term as I will only receive approx a third of the equity during the remaining term of the iva. I may be able to get a loan from family to end it early which I am feeling may be a good route... is it worth asking for full and final settlement amount do you think?
I am sure that creditors would be sympathetic to a settlement at this time. However creditors may look for the full amount of the equity which is technically owed to you by your ex wife so this may need reflected in the size of the offer. If you can reach agreement with your ex about the equity it would certainly help you and I applaud the fact that you are trying to protect the home for her.
The remortgage to take your name off the IVA is tricky as you should really sign a certificate of solvency when disposing of an asset at less than true value. This would be possible if you have a full and final settlement accepted so hopefully your ex wife's solicitor and your IP can resolve this and you all can move on.
