Me and my partner are in a joint IVA OF £650 per month and have got 15 months left. We have decided to migrate for family reasons. We live in a flat where the lease is only 49 yrs old. We have asked 3 estate agent to value and as lease is below 50 yrs only cash buyers and maximum value will be £125k. We have joint mortgage of £105k left. in our iva it says there was joint equity of £10k to be released in last year. when we migrate we ill not be able to pay the iva and the mortgage.
best advice appreciated.
Are you considering putting the flat on the market ? You should speak with your IP and discuss the option of using any funds from the sale plus payments made to date to conclude your IVA. You have come a long way with your IP and you really want it to conclude rather than fail
The question I have is there is a restriction to sell as i remember we fill in a form that the IP sent us. so how can we sell or will the IP release the restriction?
As long as you are working with your IP on the sale he will lift the restriction. That is only there so that he is made aware of any move to sell without his knowledge or agreement.
Speak to your IP and work out the best way forward.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
There should be no reason why the property cannot be sold, but you will need your IPs permission for this - and do let them know abut our emigration plans. Remember it is your duty to keep your IP informed about all changes in circumstances.
Thanks for all the replies. If i were to rent out the flat is that an option. I will be sending the iva payment from overseas and the mortgage for the flat will be paid by the rental income. The only reason i want to rent it out is because we are migrating and never knows if we do not adapt.
The flat due to short lease is worth $125k max and our mortgage is £105k. The flat can only be sold to cash buyers only due its short leasehold. How do they normally work out the equity to be released as it says we will need to do a remortgage in the last year.
Many thanks in anticipation for the replies
I am trying to work out a settlement figure. I have 14 months left on my iva of £650. For a settlement is it 14 x £650 and share of equity in the flat. Is that the correct way to calculate
You will not be able to re-mortgage the flat, I doubt, given the short term left on the lease. Have you ever tried to acquire the freehold, as this would enhance the possibilities tremendously - and it will get more expensive as the leasehold period reduces.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
You will not be able to re-mortgage the flat, I doubt, given the short term left on the lease. Have you ever tried to acquire the freehold, as this would enhance the possibilities tremendously - and it will get more expensive as the leasehold period reduces.
Thanks for the reply. We have tried in the past to extend the lease and/or buy the freehold but it was too expensive or we did not get majority owners to agree to buy the freehold. I got valuations from estate agents where I live and they do have cash buyers for the property and they are offering in the region of £125k. My mortage oustanding is £105k. I got 15 months of £650 outstanding on the iva. How can i work out a settlement. In my proposal it says in the last year of the iva I need to release the share of equity which was £5606. Will selling the flat be enough to make a final settlement?
Probably best to discuss this with your own IP, as it will be dependent upon the level of disposable income you have remaining once the flat has sold and you have moved on.
