Stuck between a rock and a hard place

[dgardn2016]

Hi,

I have been in an IVA now for a little under 2 years. The IVA has become unaffordable due to the loss of rental income. I can’t get new tenants due to repairs that need making; some are structural and could easily amount to thousands. Some of the repairs are supposed to be joint repairs, I say joint but that’s providing all parties cough up and they haven’t for a number of years despite attempts at contact they don’t want to know. The only way to force the issue is litigation through solicitors and going down having the leases enforced….Very very expensive. Also there is no freeholder to enforce the leases that way.
I have put in a final settlement offer to the IVA Company from a generous family member, the variation meeting will take place 2nd May. Hopefully it will go through as im in limbo at the minute, and haven’t slept properly for the past few weeks since the last tenants left. However I have heard that a completion certificates can take a good while to be sent out. And the restrictions not always removed.
The only options I can think of are:
A: - Sell
B:-Volenterally surrender the keys back to the mortgage company
Both options will likely throw up headaches as there is a restriction on the property; however I have a deficit of £212 per month on my outgoings. My IP’s advice was to stop the IVA payments to try and make the deficit a little easier. But I also have an empty property that im responsible for paying £127 council tax on still. So im no better off.
Ideally I could do with the restriction being removed, as with the problems with the property it won’t fetch its full market value anyway. If I borrowed money from family to try and repair so I can sell it, I would need to pay this back upon sale.
I wish I had taken bankruptcy now, and lost the property in the process. It’s an old property and soon as one thing fixed, another breaks. It’s within my interests to get rid of it, even if all I cover is the mortgage and any associated costs.
To top this off, come the end of the year I will have to find the money to pay any outstanding tax liability’s also. This was never included in the iva budgeting at the start as I hadn’t made a profit for a few years due to maintenance and repairs.
Ideally I need to ask for the land registry restriction to be removed, as it will make things easier. Has anybody had any experiences similar to mine that can advise? Any help would be appreciated, as I don’t know what to do for the best at the minute. My IVA company is Debt Free Direct.

Kind regards
Darren

[Laura.Harrop]

Hi dgardn2016

I would be happy to answer your queries if you can email your reference number or full address so that I can locate your account and any other queries you wish to discuss to customersupport@debtfreedirect.co.uk.
Please mark the subject of the email FAO Laura Harrop.

Speak soon.

Kind Regards
Laura

[Foggy]

Hi Darren. Really you need to dig in a little while longer and see what the outsome of your offer is. A completion vertificate should onlt take a couple of months and you simply need to urge your IP not to forget to remove the restriction -- keep on his back. I cannot see how removing the restriction now would make any difference. The proceeds of any sale while the IVA is active would be lost to the IVA amd a voluntary repossession could cause the IVA to fail, depending on the figures involved in any shortfall.

Do you only own the rental properties? Or do you also own the home you live in ? Failure of the IVA and / or bankruptcy could put your home at risk if owned.

[dgardn2016]

Hi Laura, I will email you when I get home, as I don't have my ref number with me - thanks

[dgardn2016]

Hi Foggy,

I just own the one property, and I rent the property which I live in. I have provided a redemption certificate for the mortgage as part of the process. But because my income and expenditure has dropped into minus figures. I wouldn't be able to mortgage to put any more into the iva anyway. I am holding in there for the moment. If my offer is accepted, and the restriction removed. Then I will need to be paying back some of the family member that have lent me money to get by. I will talk with Laura, if the restriction will definitely be removed should the offer be accepted on the 2nd. There are some outstanding PPI claims, I don't know exactly how many but they are definitely still waiting on equity in finance for some still. I think only 1 has been successful and the 2nd they didn't pay anything out and closed it down. I hear outstanding PPI claims can delay the completion certificate. I don't know if that's still the case. My friends were with debt free direct and it took 4 months after there full and final settlement offer was accepted. All outgoings are now paid on the place this month, so it makes no difference in that respect waiting to hear the outcome.

Thanks
Darren

[Foggy]

Hi Foggy,

I just own the one property, and I rent the property which I live in. I have provided a redemption certificate for the mortgage as part of the process. But because my income and expenditure has dropped into minus figures. I wouldn't be able to mortgage to put any more into the iva anyway. I am holding in there for the moment. If my offer is accepted, and the restriction removed. Then I will need to be paying back some of the family member that have lent me money to get by. I will talk with Laura, if the restriction will definitely be removed should the offer be accepted on the 2nd. There are some outstanding PPI claims, I don't know exactly how many but they are definitely still waiting on equity in finance for some still. I think only 1 has been successful and the 2nd they didn't pay anything out and closed it down. I hear outstanding PPI claims can delay the completion certificate. I don't know if that's still the case. My friends were with debt free direct and it took 4 months after there full and final settlement offer was accepted. All outgoings are now paid on the place this month, so it makes no difference in that respect waiting to hear the outcome.

Thanks
Darren

Most firms will take an assignment of PPI to allow completion to proceed without waiting the outcome of any claims. The regulatory bodies issued advice stating the PPI alone should not be a reason to delay completion. I don't know if DFD use deeds of Assignment or not, but it is worth asking when you speak to Laura.

[Laura.Harrop]

Hi dgardn2016

I've been unable to locate any email from yourself, if you still wish me to look into this further for you please send all your details to customersupport@debtfreedirect.co.uk and please ensure you mark in the subject of your email FAO Laura Harrop.

Many Thanks
Laura