My ex-wife is trying to buy out my share of the house. The equity would be more than enough to complete my IVA with 100p in the £ plus all fees.
So, she had had the mortgage agreed.
But in the paperwork for me to sign is a declaration of solvency. Obviously, I can't sign that. This is what the bank have said this morning:
"The solicitors highlight a real risk to our security in the first five years and given the fact that the outgoing party has specifically been advised that they should not sign the declaration of solvency this gives me reason to believe that the issue highlighted by the solicitors could come to pass."
This is my IVA, entered 3 years after my ex and I separated.
Can anyone think of a single reason why she would have a mortgage turned down because *I'm* in an IVA? Surely, there is more risk with me being on the mortgage than if she buys me out and owns the house entirely?
"The only way I could see around this were if the transaction were taking place subject to a court order as part of the divorce, this way we would be satisfied that it could not be argued that the outgoing party did not receive ‘true value’ for it as it would already have been ordered by the court"
She's offered me an amount that is less than I *might* be entitled to based on what she can get on her mortgage. Could they be saying that, as someone who is not solvent, I might come back in a year or 2 because my creditors have a claim on some of the missing equity?
Currently the only claim on the property is the restriction placed by the IP. In most cases like this the conveyancing solicitor accepts a professional undertaking from the IP that, on the transfer of £xx to the IP from the sale / refinancing proceeds, the restriction will be removed, leaving no stain from the IVA on the title. There is no risk to their security as you are removed from ownership and the new mortgage is nothing to do with you, nor you are anything to do with it.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Cheers foggy. There is no restriction as far as I know. My ex refused to sign the RX1 (or whatever it is) and it was never chased up even.
So, my IVA has about 15k left. That's the figure that they gave me to clear it completely.
The offer I've received from the ex is £75k based on what she can afford to raise. BUT, if I was to get 50%, I might be entitled to £100k if the house sold for the top valuation. The building society/solicitor don't know these details but they will be aware that I'm accepting less than I might be entitled to. I'm guess that that's where the risk is. Let's say I was entitled to 100k and my debt was 100k. By only accepting 75k then I'm 25k short. I default and my creditors are 25k down because I've accepted a figure that's lower than I'm entitled to. Could they then go after my ex for that?
Anyway, I've just been through the docs and I think the deal *is* part of the court order. Just checking that with the solicitor.
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
Unless I am misreading something the new lender will be concerned about the fact that the property is being transferred 'undervalue' and therefore potentially open to attack in the future. Should that occur and prove successful it would clearly have a detrimental affect on their security. Get your Wife to have a word with her solicitor and see if it's possible / whether the lender would accept insurance against this event.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
Thank you for the replies. I've been through the divorce documents and the transaction is taking place as part of a court order which also states that I'm giving up any rights to the house, etc. I have confirmed this with my solicitor. Barclays have said that this satisfies their needs so we should be good to go. The consent order was submitted to the court on the 24th March but apparently they have massive backlogs to it hasn't been rubber stamped yet. We're just hoping that Barclays are happy to proceed based on the fact that the court order contains what they need rather than them insisting on waiting until the court have done their bit and finalised it.
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
