I've been in an IVA for 18 months at the moment which is going very well. I am currently renting a flat with my partner and she is keen to purchase a property. Her dad is willing to give her the deposit needed and the house would be put in her name only for obvious reasons. We are not financially linked at all with any joint accounts so her credit record is very good. I am just wondering if my IP would question the move as technically my partner would become my landlord essentially.
Any help would be great I know some might suggest the dad helping me pay off the IVA but I got myself in this mess and I am quite keen to get myself out of it.
I think you will be ok and you would become a lodger and pay rent. You would have to tell your IP and possibly do a new I&E.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
On paper there should be no issue. However, there are several potential stumbling blocks: Equity --- as an adult occupying the property in the name of a partner, it could be argued ( and often is in matrimonial matters) that you will acquire an interest in the property, and, therefore, a share of the equity. Linked to that, some lenders will not lend in one name of a couple occupying the property together,although some will do so if you execute a deed declaring that you will not acquire any interest in the property --- this would have to be sorted out between the lenders solicitors and your partner's conveyancer. And, finally, you will have to sort out how you and your IP are going to deal with 'rent', as this position could be complicated: If you pay 'rent', your partner might need permission from the lender to rent out part of the property.If you are contributing to the mortgage repayment, then it strengthens the possibility of you acquiring an interest (which your creditors will want to share).
It is a subject on which you really need to seek professional advice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I thought it would be good to follow up on this post. My wife has recently completed on a house and there has been no real issues along the way. I had to sign a form to say I have no legal rights to the house if she fails to keep up with payments etc.
In regards to my IVA, we just did a whole new budget of my contribution to household bills and there has been no issues regarding that. Thank you both for the responses to my original question.
It has been a great relief to me as I thought my debt was going to harm my partner's house dream forever.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I know some might suggest the dad helping me pay off the IVA but I got myself in this mess and I am quite keen to get myself out of it.
