I live in a ex-council flat and the council is going to demolish our property in 2 years time for regeneration plan . They offer us (leaseholders) on a buy back scheme. They are offering to buy my flat on the current market property value. I'm 40th month now on my IVA, my IP is going to review my IVA on my mortgage this month. If I a go ahead with the council offer, how much I need to pay or can I make a F/F payment whatever the remaining months on my iVA which is 20 months left. How can I sell my property if I have RX1 on my flat. I will earn 50% on my property value so I think I have money to pay them in case, but I also need to share the half of the equity to my wife because she pays some money on the mortgage even though she's not on it. Hope some can help me.
You could offer to make a full and final and in that case the restriction would be lifted.
Hopefully one of the other experts will be along with further advice.
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
This is tricky as you will struggle to get a new mortgage even with a sizeable deposit so you may need to rent until your credit file clears up. If you are making an offer from the sale proceeds you would need to be offering pretty close to what creditors would get for the remainder of the IVA plus an extension for equity. If you can manage to source this money from family and close early it may be a better idea as you can then deal with council having had the restriction removed and the IVA completed.
On the rehousing front I would have a chat with the council and see if they would be willing to re-house you ( even if only on a short term tenancy ) -- after all -- they are making you homeless !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hello everyone ! thank you for all your advice about this matter.
Just want to update you about my meeting with the council today. I need to sell my property back to the council under the buy back scheme. It will all depends on the current market value . I will earn equity on my property. The problem is I need to move to another property and buy another one. If the value of my property for example is 300k and my remaining mortgage is 100k. Can I buy another property worth 300k or less and ask my current lender if they will allow me to port my mortgage to a new one. As per the council they will shoulder all legal expenses, stamp duty as part of the compensation. I'm on my 4th yr now on IVA, I told the council about this because of the RX1 to my property. They are really helpful and giving me support about this. They also mention that they will if they can pay my remaining debt on IVA so my credit file can start to build up for me to purchase a new property. Do you think they will allow me to port my mortgage? Thank you in advance and hoping everyone can give me advice.
Unfortunately your credit rating will be shot for 6 years from the start ofyour iva irrelevant if iva debt paid off.
You may benefit from talking to Ryan or Shaun the mortgage experts on the forum who may know of lenders who could help in this situation.
There contact details can be found here http://www.iva.co.uk/forum/forum_experts.asp
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Hi,
They will not port your mortgage as they no longer lend money.
I still think i can get you a mortgage though if you have a 25% deposit.
Please get in contract direct at the website below if you would like to discuss this in more details
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
His email details will be under his profile on the 'ask experts a question' link on the left hand side of the page.
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
by the way, I was looking on my paperworks and do some calculations about my debts. I have 33k debts for 60 months payments. I already paid around 24k in 40 months , I have increased my payments in the last couple of years. to £100 extra a month. by the time I reach the 60 months I already paid in total of 37K which is more than my creditors voted and accepted. I phoned my IP and they said I only have 10K remaining. If I'm going to make a F&F offer will 8K is reasonable enough and won't be rejected. As I mentioned before my property is going to be demolished by council and they will pay me according to the market value, they also offered if they can pay the remaining debts so it can remove the restriction to the property. In this case do I need to write my IP about the council plan in case I they will finally offered the money for F&F . Is this included in the windfall and will I be subject to property value by the IP. I am really stressing out at the moment also because my wife lost her job, and this house moving need to happen soon.
