www.iva.co.uk

Hi

I have been in IVA 2 years just completed 2nd yearly review. Its very tight but my own stupid fault for getting into this mess in the first place so have to do the best I can... will never get in to debt again I know that for sure. I have a 4 year equity clause on my house (shared ownership - so there probably wont be a lot of equity anyway) but my current job is taking me to manchester more and more but because the job is very stable i do not want to give it up (especially with the lack of jobs at present) so i am possibly reconsidering relocating to live there (would prob have to rent though or stay with friends because i know it will be difficult to get a new mortage)

I have 2 questions: 1) Is relocating allowed when in IVA? and 2) What happens with the 4 year equity clause. My IVA provider registered a RX1 with land registery - not sure what this means - and my IVA states there caqn be no variations within first 24 months but I am now at 24 months. Would I be able to sell my house and pay off the equity early and therefore end my IVA? I don't know the best thing to do here but commuting for another 2 years seems really tough.
Any advise gratefully received
Thanks

Hey jc1180, You will need your IPs permission but it sounds like a good idea to move nearer the job that you obviously want to keep. I don't blame you. I'm not sure about the RX1 so please wait for one of the technical experts to help you with that. Good luck and I hope it works out for you. X

Relocating is definately allowed, and the requirement to raise equity in the final year is then transferred to the new property. The RX1 is merely a restriction against your property which also restricts you from selling without the Supervisor becoming aware of this - so this would also need to be transferred. So long as you were buying and selling within the same price range, I cannot see that there would be a problem - but do discuss this with your own IP to see what views they have.

thanks for that but what if i decide to rent and not buy when i relocate. The property appears to be more expensive to buy than when i first got on the ladder - my mortgage os only 36k for 50% share and rent part is £200 - i doubt if i would buy as cheap - so renting might be the best option. What would happen to the equity clause then??

kind regards

Then you would need to get your Supervisor to put a variation forward for you on the basis that you put in the equity available at an early stage - after alowing for relocation costs. This would deal with the equity release clause, but you would need to make sure that you were leaving yourself with enough room in your budget to cover your current IVA payments, or else reduced payments would have to be negotiated.

fantastic - thanks so much for your help - i can speak to my provider now at least knowing that there is an option
thank you