I cannot afford to live in my house because of the cost of repairs.

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calli
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by calli » Mon Nov 27, 2017 11:33 pm
I am currently in an VIA and pay £170 per month. My last payment is due in March 2019. I am in a position where l can no longer live in my house. It requires so much work that l just can't afford to do so the only solution is to sell but l'm so scared I'll end up having to pay more than what l would if l just continue to pay up until March 2019. Can l sell without it costing me a fortune ? My mortgage is £65,000 and my house as is it is probably worth £90,000. Can someone help Please?
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Foggy
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by Foggy » Tue Nov 28, 2017 7:58 am
If you sell whilst in the IVA the equity (well, 85% of it) will go into the IVA for the creditors. If this covers the full original debt, plus fees and statutory interest the IVA will end, otherwise you keep paying monthly as well.

There are "workarounds" ... for instance, you could approach your creditors (via the IP) and offer to sell the house in order to make a full and final offer of £XX --- stipulate that the house will not be sold unless the offer is accepted. You would need to offer around the amount of payments remaining -- you say until March 2019 (does this include a 12 month extension in lieu of equity?).

So 15 (or 27) times £170.
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Lisa Thomas
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by Lisa Thomas » Tue Nov 28, 2017 11:52 am
I agree with Foggy - if you cannot stay there until the end of your IVA then you may need to put forward a full and final offer on the basis of the sale.

Please note you will no longer be a homeowner and will no doubt find it difficult to get back on the property ladder until your IVA has completed successfully and the 6 year anniversay has also passed.

If possible consider any other options to stay there.

Perhaps even having a payment break with your IPs permission to do some of the repairs.
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Ryan
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by Ryan » Tue Nov 28, 2017 12:04 pm
Hi Calli,

I'd echo Lisa's thoughts about doing whatever you can to avoid coming off the housing ladder.

All the best.

Regards
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