Sorry I meant to say when I said the property would be worth £500,000 I meant at year 5 - as we are renovating it so the value will go up much more when it's completed.
I've just been to the shop and on one of the front pages of newspapers it reads 'House prices to soar by 20% over next 4 years according to financial experts'. If this is correct then the 12 month clause/equity issue is going to be even more pivotal for people thinking about entering into an IVA. Hopefully you can get this sorted Tobymoz!
Renovating my property is what got me into the debt I'm in also (well that and a cowboy builder)! Quite ironic if I do end up losing the house in the end!!!
I read the same headline today Nicola, and it really concerned me too! Just wondering what the phrase "protocal compliant" means? As you say, most people enter an iva as they don't want to lose thier home, so is it guaranteed that if you can't release the equity in year 5, that you are allowed to have the 12 month extension? I mean if there is equity there, and you can't actually get the remortgage.
Tobymoz, I really feel for you too, and I hope you get it sorted. Sorry that I can't advise you any futher, but I'm quite new to all this! Got my fingers crossed for you though.
Not much point in entering the IVA if you could possibly be forced to sell your home in year 4 or 5 to release equity because no mortgage lenders will offer mortgage!!
Tobymoz - maybe I am missing something, but how are you managing to renovate your property to such a large extent whilst you are subject to an IVA?
And to Nicola - protocol compliant IVAs, which a lot of insolvency practitioners use these days, mean that your house will not be sold in order to raise equity at the end of the IVA.
Ah, that is really good news then Melanie. Highlights the importance once again of selecting an IP who knows their stuff!! Sorry for going on a rant about this, I just couldn't understand the whole equity thing. Thankyou for clearing this up Melanie. Tobymoz, I really hope you get this sorted out with your IP!
Last edited by Nicola.sa on Mon Aug 02, 2010 10:40 pm, edited 1 time in total.
We are renovating it ourselves - luckily this is the third house we have done up over our 32 year marriage so we are quite good at living in a mess and doing it ourselves - with the help of our two sons who are both in the building industry and help us out when they can!
Payplan have confirmed that my IVA is protocol compliant so am I correct then that they can't force me to sell my home but they can still fail it as I can't remortgage and then request that I be made bankrupt?
Sorry Melanie for all the questions - is it too late to change to you? Tobymoz
Yes, thankyou Melanie, that puts my mind at ease. I was begining to worry myself about how much equity there could be in my house in 5 years time, and then not being able to release it! Just never heard of protocol compliant ivas before.
Tobymoz, surely it wouldn't be in the creditors interest to just fail your iva after all that time? I don't know the answer, but i'm sure one of the experts will be able to answer you soon.
If the IVA is protocol compliant, then there will be no failing of the IVA or eventual sale if a remortgage cannot be effected.
Alas Tobymos, as much as I would love to act for you, it would not be cost effective for you to go to the trouble of having your present Supervisor removed, and I doubt you would have grounds in any case. Work with the firm you are with, and I am sure all will be well at the end of the day.
are these type of ivas new then.we ahd nothing like it.There was a meeting called after a lower house valuation and then we were given a extra year so 12 payments to go
Thank you so much Melanie for all your help - I wish I had come onto the site prior to arranging my IVA as without a doubt I would have asked for you to take it on! Regards Tobymoz
