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we have a shared ownership home(50% us and 50% government agency) the terms of the agreement forbids us from remortgaging. would this stop us from taking out an IVA?

Hi ian.r and welcome to the forum

No - but make sure that your IP is aware that the property is shared ownership, and that you can only borrow more money against your share of the property.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

This will not preclude you from proposing a succesful IVA but you need to ensure that your IP is aware of this from the start.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

Hi Ian,

Having a shared ownership property does not exclude you from going into an IVA. However you would have to let your I.P know that you are unable to re-mortgage which means your IVA would be based on monthly contributions only rather than monthly contribution plus an equity release like other individuals.

Best Regards. IVA Experts

this sounds strange..i live in shared ownership - but who i place my mortgage with for my half of the property is totally up to me. as long as you pay rent on the other half of the property then the shared ownership housing agency surely cant tell you who to remortgage with..its your personal financial decision. I may be wrong here but i think who ever owns the other half of the property may be misleading you - i can remortgage at any time..the only time i need to consult them with respect to the financial value of the property is if i choose to sell. If i want to sell my half i have to consult them - they arrange a valuation and i arrange a valuation and a selling fee is decided betwen the two parties...you own that half its up to you who you place your mortgage with - recheck your terms and conditions..if you remortgage to raise extra cash some shared ownership associations ask for a percentage of the increased value (ie if you have 25% equity then they will ask for a percentage of that) or they may increase the rent on the other share of the property but they shouldnt be able to stop you from remortgaging. just bear in mind that if you do remortgage - when you come to sell you have to give a percentage of that to the shared ownership agency (ie: if you half is valued at 50k and your mortgage is 30k - you currently have 20k equity. if you remortgage to 40k when you come to sell you will only have 10k soare - you will have to give approx 5k to housing agency) you may run the risk of coming away from the property with nothing or litle investment - especially if house prices drop - you may run into negative equity - so be careful if you are going to remortgage - go for the absolute minimum needed..hope i aint confused you too much...good luck...

Dear all,

What is shared ownership?

How does it work?

Thanks.
hara.

Most shared ownership schemes have different rules and regulations. Some allow a re-mortgage on the part that is owned by you whilst others don't.

Hara put simply a percentage of the equity is owned by someone else - with rent being paid to that owner. On sale that owner also benefits from the upside (or downside).

I would check all the paperwork you have to see what it says. Also not all mortgage companies offer shared equity mortgages.