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I have an IVA in place and i own a property, i need to release £5000 after 5 years. I am currently in the proocss of buying another house with my boyfriend. It will be a joint mortgage. Is my new house safe from the IVA? I do not want to put my boyfriend in a position where we loose all out equity in 5 years because of the IVA?

Hi lic and welcome to the forum

What are you going to do with the first property?

I have to releadee 5k from my first property in 5 years. I have just found out that NR have put a charging order against my property when they should not have therefore the lawyers at my involvency firm are dealing with this problem. Is it true that if i get a new mortgage they will after 5years, want me to release my share of the eqity if there is any? Help. Feel trapped

Hi
If you are selling one property and buying another the equity interest will transfer to your new property,but will only affect your share of the equity.
You must not cash in anyof your equity from your current property unless you have your IPs permission

Regards

I cannot sell my first property without my IP knowing. In my IVA agreement i have to release £5000 after my 5 years at my existing property. If i sell my first house and get a joint mortgage with my partner will the release of the £5000 stay the same? Will it work just the same as with my first house that i have sold? What information will my IP need at the end of each year to check my income and expenditure? Do they do a credit search?

Hi
You must inform your IP of your intention to sell and move.You will need their permission to take out a new mortgage with your partner.
As i said if you sell and move the equity will transfer with you as will the clause to remortgage
Your IP will need wage slips,p60 and possibly bank statements at your annual review,and no they do not normally conduct a credit check
Regards

Regards

I have been faced with similar situations many times, and generally it is better to pay over the money when the sale is acheived rather than invest in another property and then face the final year release which will undoubtedly affect your partner. In order to achieve creditor agreement, a variation meeting will probably need to be held.

My problem is i have only been in my iva for 3 months. Myself and my partner have a decision in principle at a relatively good mortgage rate. My partner cannot buy on his salary alone. I have been informed today by my ip that nr have placed an unfair charging order against my property (of which i need to release 5000 from in the 4th year)!! Typical, nothing ever runs smoothly!

I cannot sell my property therefore we would be taking out a new deal and renting out my existing property. Can the IP and creditors stop me from moving and getting a mortgage with my partner? Even though the mortgage is in joint names if i pay significantly less than my partner will my ip and creditors accept this? Feeling trapped and only in month 3. [:(]

Don't worry about the charging order - it will eventually be removed. It is a shame that this decision was not made before you entered into the IVA, rather than three months after you accepted the equity release clause. Could you and your partner not live in your property instead?

it really is not really in a desirable area and we would like to try for a family in the next couple of years, hence we wanted to get a nicer house in a nicer area. Feel like i am being punished for wanting a better life and facing my debt problems. Affordability is not a major factor and i can keep the same monthly payments if i move but i am worried they are going to turn around and say no i have to stay living in an undesirabke area.

Those are really good reasons and I would certainly support your decision if I were your IP. Why not have a chat with your own, and determine whether they would be prepared to accept that the equity release provision transfers to your new property. Your partner would have to understand that during the final year of your IVA there will be a need to raise equity, but that this will only affect your share and not his.

You are not being punished, but creditors do expect you to pay back what you borrow to the best of your ability. I do find it strange to understand why this was not considered before you entered into your IVA - as that is so recent.

my boyfriend is in the army and has been posted in Germany, it is only recently that he has come home and we have decided this as he is putting his termination inthe army. He still has one more tour to go on therefore time is precious and we really want to have our own place to start our lives. I am concered because the rent that i can ask for from my house (400PCM)will not cover the increased payments to my mortage (540)will this effect things. I have worked out i can still afford all my IVa commitments.

Ash - the uncertain life of members of the Armed Forces (I'm ex Army myself!) - I can understand why you are making some snap decisions. You will need to discuss with your own IP though, so I would book a call tomorrow.

Melanie if my boyfriend and I were to purchase a new proprty can my boyfriend protect all the equity at the end of the 5 years by buying out my share? As i will still have the first property and hopefully there will be enough equity in that to pay off any monies on top of the 33p in the £ i have agreed to pay over the term of the IVA.

Absolutely - and that is a very sensible solution to this issue, but how are you going to cover off the shortfall in your rental income to mortgage payments?