www.iva.co.uk

Tricky one now.

My own property which is still in Scotland and I have been renting it out for the past five years.

I stay in London at the moment and my accomodation is covered by my work.

As part of the IVA I obviously have to try for equity release/remortgage after 4 years.

There may be a chance of having equity on the house, but my personal earnings are lower now than when I got the mortgage and although my mortgage (for any larger amount) would be covered by the rent which comes in from the lease of my property, I am not sure if this would be taken into consideration by a lender.

Does anyone have any similar stories to share or some advice which I may find useful or am I likely to be in a no equity to give situation?

Thanks.

Hi I'm sorry I don't have any advice on this but we'll keep it bumped up for a professional opinion.

You may be able to use a specialist lender if the property is a buy to let but the IVA would more than likely cause this avenue to be closed. A sixth year extension may be the best way forward but creditors could look for a sale since it is not your principle residence.

Bear in mind any equity would have to take into account capital gains tax which would be due on the sale so creditors may take the extension if they equity is not huge.