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Posted: Tue Jan 15, 2013 1:17 pm
by Maddie
My brother and myself will one day be left my parents house,my brother will be living in it and he is unemployed due to ill health.
If i was in an iva what happens if i am left half this property as it will not be sold neither will my brother be eilagable for a mortgage?
Posted: Tue Jan 15, 2013 2:22 pm
by Shining
http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=49969
The above is your other post we'll try and link them together to save confusion.
I'm not sure about what would happen with your share of the house, but I'm sure you IP will be able to give case specific advice.
Posted: Tue Jan 15, 2013 2:27 pm
by lem
All I would say is don't count your chickens, much can happen in the future, my parents house was to be sold and split between me and my brother following their death, a few years ago my mum died, my dad moved in with his neighbour and has since sold the house and is using the proceeds to fund a very extravagant lifestyle with his new partner!
If I were you, I would not worry about things that may or may not happen in the future and concentrate on dealing the debts and associated assets you have now.
Posted: Tue Jan 15, 2013 2:40 pm
by Foggy
If you get left a share of the house there is every chance that this will be regarded as a windfall and your share will have to be paid into your IVA, even if this means forcing a sale.
Posted: Tue Jan 15, 2013 4:16 pm
by orange
why would his brother not be allowed to live in house ? and why would they force a sale hasnt the brother got any rights ?
Posted: Tue Jan 15, 2013 4:26 pm
by UpToMyNeckInIt
I thought of that as well Foggy, but I agree with the point orange made - this house is jointly owned by the OP + their Brother.
As stated by the OP, a mortgage of any sort is unlikely.
Could the IVA company force some sort of equity release via secured loan though? (I don't know if this could be forced upon someone - particularly where their IVA is unlikely to contain any reference to equity release).
Posted: Tue Jan 15, 2013 4:29 pm
by orange
who would pay the loan ?
poster said brother wouldnt get a loan ?
Posted: Tue Jan 15, 2013 4:59 pm
by Foggy
I am in the same position, and when I posed this question a while ago I was advised by an insolvency expert that a sale can be forced, if the other party was unable to buy me out.
Posted: Tue Jan 15, 2013 8:14 pm
by MelanieGiles
I hope I was not that expert Foggy!
In reality a Supervisor of an IVA has no power to force the sale of a property - however if the provisions of the windfall clauses are not met by the debtor then this would give grounds for the IVA to be failed - effecively leaving you back to square one. A subsequent Trustee in bankruptcy does have the power of sale - providing their possession proceedings are accepted by a Court - leaving the only alternative perhaps a never ending DMP, if you could get creditors to accept that option over bankruptcy.
Posted: Tue Jan 15, 2013 8:36 pm
by Foggy
No, Mel, t'was not thee.
But, the overall effect of the process you describe is much the same in all probability. "A sale can be forced", not by the IP -- but by other devices.
Just thinking around this one: We'll use my case, which is similar to that of the OP -- I will use made up figures for ease:
Original Loan £50k, rough total, including fees would be around £59k.
Three years into IVA, paid to date £30k. So to settle in full £29k needs to be paid.
Inherit half share in a house worth, say £180k (ignoring, for this exercise, legal fees etc of the estate). So due to inherit £90k.
Would it be acceptable to raise a loan on the house to buy other beneficiary out and pay off IVA. So borrowing £119k (also ignoring the practicalities of raising a mortgage -- which I know would be "problematic") and creditors leave house alone --- after all they have full repayment and IP has fees covered.
Posted: Tue Jan 15, 2013 9:07 pm
by Gettingthere
Is there a mortgage on the property Maddie or is your home paid for?
Posted: Tue Jan 15, 2013 9:36 pm
by Maddie
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Gettingthere
Is there a mortgage on the property Maddie or is your home paid for?
No there is no outstanding mortgage
Posted: Tue Jan 15, 2013 9:44 pm
by Maddie
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
I hope I was not that expert Foggy!
In reality a Supervisor of an IVA has no power to force the sale of a property - however if the provisions of the windfall clauses are not met by the debtor then this would give grounds for the IVA to be failed - effecively leaving you back to square one. A subsequent Trustee in bankruptcy does have the power of sale - providing their possession proceedings are accepted by a Court - leaving the only alternative perhaps a never ending DMP, if you could get creditors to accept that option over bankruptcy.
Posted: Tue Jan 15, 2013 9:48 pm
by Gettingthere
Do your parents have a legal will to state how their assets would be distributed should the worst happen Maddie?, I would have thought that as your brother lives with them due to ill health they would want him to be protected in regards to having a stable home environment. All ifs and buts and hopefully your IVA, should you enter into one, will be over and done will long before then
Posted: Tue Jan 15, 2013 9:56 pm
by Maddie
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Gettingthere
Do your parents have a legal will to state how their assets would be distributed should the worst happen Maddie?, I would have thought that as your brother lives with them due to ill health they would want him to be protected in regards to having a stable home environment. All ifs and buts and hopefully your IVA, should you enter into one, will be over and done will long before then
My mother has passed away leaving my ill father and brother in the house,my father is now wanting to make a will hense my question?