My iva commenced in September 2011 with RSM Tenon and was then passed to Grant Thornton. I have two properties both with restrictions on title deeds in Favour of RSM Tenon. Property one is under offer to sell at £525000 with a mortgage of £338000. Property two is on the market for £390000 with a mortgage of £212000 but is in a bad state of repair due to rogue tenants! (Court battles for two years, absolute nightmare, another story!)
My sole income is the rental income from the 2nd property and my wife worked. We are due to have a second baby so my wife will not be returning to work. There is also massive tension and talk of a split because of my IVA. They were my debts before we were married and she has contributed massively over the last 5 years regarding the IVA payments. I being unaware of the restriction have put house one on the market and have received an offer of £525000 which I accepted. It was at this point the conveyancer picked up the restriction on the title deed. Both properties also have a charge on them for £110000.
From what I have read on various forums so far, Do Not Do anything until negotiating with your IP. We are in a chain and do not want to delay the sale as if we don't sell, we will be in danger of loosing both properties!!
There will be no chance of getting a remortgage with my credit rating and my wife leaving work. So without doing anything my IVA would run for another 12 months.
In selling house one and paying off the mortgage, estate agent fees, sollicitor fees and the charge would leave me with circa £65000. Not enough to buy another house, so maybe try to pay this towards the mortgage on property two. Therefore reducing it by the above amount. I simply don't know what to do as if we just carry on we won't be able to maintain our payments to Grant Thornton of £300 pcm.
I presume the restriction on the title deed originally with RSM Tenon will have passed to GT.
I have read cases that maybe making an offer of £3600 which would equate to the additional 12 months payments as Full and Final settlement might get them to lift the restriction. Even if this does work we will be living in a house that is in a state of disrepair and would still struggle to make ends meet.
I have also read that GT are an absolute nightmare to deal with therefore any advice or plan of action will be greatly appreciated. My Sollicitor regarding the sale is awaiting my response!
Many thanks for your reply Lisa. Unfortunately it seems I have been given rather bad advice from my FA.
If I were to pay the 33k from the sale of the first property into the IVA I would not be able to bring my mortgage payments down on my second property which we would be moving into, this would leave us in an unmanageable financial situation where we would default on the mortgage and loose both properties in the long run.
Maybe the best cause of action would be for either myself or my FA to contact my IP and explain that imy wife will be giving up work in July which would leave me with a small income from the rented second property and therefore not in a position to continue to pay my IVA payments for the final year of my IVA.
Your thoughts on this would be greatly appreciated.
You only option would seem to put a variation offer to your creditors now.
If I assume the only payments left would have been the year extension then that is the basis you should put your offer forward on.
i.e. we will raise funds by selling property and pay the IVA £X (12 months worth of contributions), keep the balance and enabling the IVA to be closed early.
This will take 5 - 6 weeks before you get your answer depending on how proactive you and the IP are.
If creditors approve it then you are free to continue with a sale of the property.
Hi Yes if you resigned yourself to halting the sale of the property completely another option could be for you could ask creditors to vary the IVA on the basis of accepting payments to date in F&F settlement waiving the extra years contributions on the basis you cannot afford them.
Many thanks for your advice Lisa. In speaking with my Father in law he has agreed to gift the IVA with the sum of £3600 which equates to the normal monthly contributions @ £300 for the 12 month extended period. Obviously I will delay the sale of the property whilst my offer is considered but would look to reinstate the sale if the offer is excepted. As without my wife's salary regardless of the IVA payments I can simply not afford to stay in my resedential property. Please do let me know if this is plausible as for me it's a short term solution to a long term bigger problem!
That sounds like an attractive offer and would like to think creditors would look favourably on it. It may take time for your IP to deal with, and close afterwards, so please be aware that any current interested parties may well walk away in the meantime BUT once everything is done and dusted you will get to keep your £33k of equity in exchange for £c3k so definitely worth the wait!
Many thanks once again Lisa for your response. I have contacted Aperture who took over from GT in regards to a potential full and final settlement. I am actually in a 72 month agreement with the last 6 month remortgage to release equity clause. I explained that due to an imminent variation on income that my IVA would potentially fail. The response I received was the generic we can't guarantee settlement unless you offer 100% of what you owe but implied with supporting figures that the minimum offer that would be considered equates to 72 monthly payments @ £300 pcm as per agreement. I see this as possible good news as these figures match my offer. I guess the question I have would be why would they not except this offer? And is there any chance they may ask me to extend for another 12 months, making the IVA run a total of 84 months!! Any advice or reassurance would be appreciated as this is unfortunately the tip of the iceberg for me.
If your iva has always been due to run for 6 years and the equity release to be calculated at month 66 of 72, then yes, you can have a 12 month extension making it 84 months in total.
Many thanks for your reply. Unfortunately I will not be able to continue with my regular payments for the last 12 months let alone another 24!! To prevent failure I am hoping they except my proposed offer of full payment for 72 months in an early settlement via a gift from a family member.
Fingers crossed that they will accept this as a full and final.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
My proposal has been sent off and I got a reply form my IP saying that the creditors have 28 days to accept or not.
What happens if some don't vote as this happened on my initial application for an IVA and also does everyone have to agree or is there a 75% required acceptance
If some don't vote they are still bound if the variation is accepted. You need a 75% by debt value "yes" vote. As for those who don't vote, the "no's" are also bound.
Last edited by Foggy on Mon Jun 13, 2016 8:20 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
