I have an IVA with Harrington Brooks. I am in the process of selling my property.

[mompreneur]

I have an IVA with Harrington Brooks. I am in the process of selling my property. My current outstanding debt is approx. £30k, and I have been told that with the equity in my property I would be expected to settle the debt in full (100 pence in the pound plus statutory interest plus fees).
My solicitor has been advised that in order to have the charge/restriction removed for me to sell the property she has to provide an undertaking to say that 85% of the net sale proceeds will be paid to Harrington Brooks. So here are my questions:
1. In this instance the net sale proceeds exceed the amount of the original debt owed, so I’m not clear on this, does this mean my solicitor needs to ‘promise’ 85% of 88k (which are the net sale proceeds) when the original debt is around £30k?
2. With an outstanding debt of approx. £30k, how much do you think I might be paying in total with the original debt plus statutory interest plus fees?
3. I had foolishly put in an offer on a house for £70k thinking I could make up any shortfall by taking out a personal loan but from all indications, by the time Harrington Brooks take all the interest and fees I will be left with a much smaller amount than I initially hoped. Are there any other option to finance the balance of my home purchase, so for example (optimistically), if by the time Harrington Brooks and the creditor take what is owed to them and I am left with £50k, could I borrow £20k (personal loan/mortgage etc)? Or are there any options available to me?

[Foggy]

Your solicitor is to hand over 85% of the net sale proceeds -- this will be applied to the IVA estate to cover the full original debt, plus fees (roughly 15% plus £2k and disbursements, say around £500 ), and statutory interest which is 8% per annum on the reducing balance (roughly just use 8% p.a).Less what you have already paid in.

You should get any surplus back. In your position I would ask that a statement owing to the intended completion date be provided and that this is the amount to be handed over.

Realistically, you will not get a loan or mortgage of any sort or amount until the IVA is cleared from your credit files ( 6 years from the start date of the IVA).

[mompreneur]

Thanks very much for your reply. I am one year into the IVA, so does this mean the statutory interest of 8% which will be charged will be for one year only, or the 5 year duration of the IVA? Will the supervisors and nominee fees be for one year or 5 years?
Also, you state "In your position I would ask that a statement owing to the intended completion date be provided and that this is the amount to be handed over." Do you mean that I need to ask Harrison Brooks for a statement when they intend to complete this? I'm not quite clear. I really appreciate your help. Thanks for your patience...

[lifenoteasy]

Also, you state "In your position I would ask that a statement owing to the intended completion date be provided and that this is the amount to be handed over." - See more at: http://www.iva.co.uk/forum/topic.asp?wh ... 055#587829

I think Foggy meant what would be owed based on the sale date of the property depending on how long it takes to sell.

[Foggy]

Exactly Lifenoteasy ( I am not too eloquent at times, these days).

Nominees fees are fixed and payable in full -- this is for the work done up to the creditors meeting and should be detailed in your Chairman's Report. The ongoing, Supervisor's, fees will also be detailed and are usually a percentage of monies paid in these days, so time is irrelevant. The Statutory interest, in this case, will be for the duration of the IVA from start to sale date, assuming monies are transferred on that date.

[mompreneur]

Thanks very much Foggy and Lifenoteasy, I have a much better understanding of it now.