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Under the 4 year rule a remortgage is required to release surplus funds into the IVA, can this be enforced if the property has not yielded sufficient funds that were predicted at the outset of the IVA. Are you able to reject the 4 year ruling although incorporated into the contract.

Hi. You will not be able to reject the clause entirely, but some IP's have requested a variation to bring oldr IVA's into line with modern ones in that, if there is no equity to be addressed the IVA concludes at the end of the original term. If there is equity ( which cannot be released in today's market) then a 12 month extenssion in lieu is called for.

Many older proposals practically guaranteed the equity or a minimum dividend, which is enforceable, being what was agreed by all parties at the time. At the time this set figure was actually intended to protect the debtor, as the property market was rising rapidly and IP's sought to limit the amounts payable to the creditors. Hindsight is a wonderful thing!

Manmountain,these days its common for a remortgage to be impossible. Check what your paperwork says regarding what happens if no equity is released or equity falls short of that expected.

Paul

Hi,

I think you have to have the clause these days - who knows what will happen during the five years?