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Posted: Mon Jan 14, 2008 10:43 am
by w_n
I am entered into an IVA with a company called debt matters. Part of the agreement stated in the IVA is that after 4 years i must re-mortgage my property and any equity gets paid into the IVA.
I am now almost one year into my IVA and i am selling my property. I understand that any equity on this property has to be paid into the IVA, but because my property is a shared ownership property i can charge the prospective buyer a premium to purchase it. This premium is not part of the equity of the property therefore do i have the right to keep this money? Thanks
Posted: Mon Jan 14, 2008 10:43 am
by pbeck
This would probably count as a "windfall" which all IVAs now oblige you to pay in.
Philip Beck -
www.freeivaadvice.co.uk
Licensed Insolvency Practitioner and IVA specialist
Posted: Mon Jan 14, 2008 11:46 am
by MelanieGiles
What do you mean by charging a premium to the purcaser in order to sell your property? How does this work in practice?
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp
Posted: Mon Jan 14, 2008 4:38 pm
by w_n
The 'Premium' is an amount of money the owner of the property can charge to prospective buyers because of the high demand in shared ownership properties.
The landlord of the property has 1 month approx to sell my share but if they fail to nominate a buyer in this time i can put my property on the open market via an estate agent and consequently because of the high demand of these properties i can demand a premium amount of money for the opportunity to buy one of these properties. This is normal practice in Milton Keynes.
Posted: Mon Jan 14, 2008 4:41 pm
by w_n
Thank you for the reply pbeck. I wouldn't describe this as a 'windfall' its money i am entitled to for making a smart move in the property market. How can i get around this?
Posted: Mon Jan 14, 2008 5:18 pm
by zoe
The whole idea of an IVA is to pay back as much as you can!! Not to "get around it" if you have this money you have to pay it over to your iva!
Z
Zoe
x
Keep your chin up - everything happens for a reason!
View my blog
http://zoes.blogs.iva.co.uk/
Posted: Mon Jan 14, 2008 5:43 pm
by pbeck
It's either a windfall or part of the sale price of the property, however you look at it, I think it's something that should be paid into the IVA.
Philip Beck -
www.freeivaadvice.co.uk
Licensed Insolvency Practitioner and IVA specialist
Posted: Mon Jan 14, 2008 8:26 pm
by MelanieGiles
I feel that it is a windfall, as the "asset" can only be quantified as and when the property has been sold. To be honest I have never come across this before - so you learn something every day on this forum!
I agree with Philip - that creditors should get the benefit of this money.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp