Ivà and mortgage

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Karen.59
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by Karen.59 » Tue Jan 30, 2018 12:14 pm
Hello I have an iva still need to pay another three years.
My husband has had inheritance from his late mother. The inheritance is just between him and three sister of his.
Can he pay the mortgage off with this money or will it effect my personalive
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Lisa Thomas
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by Lisa Thomas » Tue Jan 30, 2018 12:42 pm
I'd be interested to see what the other experts think but my thinking is as follows:

He can use the money to do what he likes but this will dramatically increase your share of equity in the property - depending on your terms this might cause you an issue at a later date - you will need to check the wording of your T&Cs regarding the equity point as creditors may want an amount equivalent to your share of equity.

Also, if the property is then mortgage free you may be able to 'remortgage' at the relevant time, if this is also one of your terms. i.e at month 54 your share of equity will now be substantial so creditors might not accept a simple '12 month extension' equal to your monthly contributions. However they may not have a choice depending on how your t&cs are worded - again you may be forced to remortgage, which despite the normal credit rating issues might actually be possible if the property is then unencumbered and you are seeking a secured loan.

Perhaps your husband could use some of the money to help you with a full and final offer instead?

If accepted your IVA should be closed earlier and you are free to do what you like with the property...?

Video here on F&Fs:

https://youtu.be/h4dozq9aGak
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Karen.59
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by Karen.59 » Tue Jan 30, 2018 12:51 pm
Hello thanks for your reply. I should have also said I'm 58 years old and am disabled. So I won't be able to get a mortgage with not working. Had serious accident at work so won't ever be able to work now.my husband is 62 years and does not earn enough to be able to get a mortgage. It has been an interest only mortgage for many years. And does have to be paid off by next year in full
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Foggy
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by Foggy » Tue Jan 30, 2018 12:53 pm
I completely agree with Lisa's thoughts. Is the home and current mortgage in joint names, or just your husband's ? Is the property listed in your IVA proposal, along with the need to release equity at some point ?
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Foggy
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by Foggy » Tue Jan 30, 2018 12:54 pm
Also -- what is your IVA payment each month ?
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Karen.59
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by Karen.59 » Tue Jan 30, 2018 1:03 pm
It is in both our names and is not listed in proposal
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Lisa Thomas
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by Lisa Thomas » Tue Jan 30, 2018 1:20 pm
How is the property not mentioned in the proposal?

Do you mean it was mentioned but was excluded as an asset?
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Karen.59
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by Karen.59 » Tue Jan 30, 2018 1:22 pm
Excluded
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Lisa Thomas
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by Lisa Thomas » Tue Jan 30, 2018 1:30 pm
If definitely excluded then you can ignore most of my comments.

I would still suggest considering a F&F with the some of the money.
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Karen.59
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by Karen.59 » Tue Jan 30, 2018 1:47 pm
The mortgage to pay off is 54000 and have just that amount plus 2000 left to pay his credit card off in total. So he won't be able to pay any of mine. But house will be safe
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Foggy
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by Foggy » Tue Jan 30, 2018 1:50 pm
Check your proposal AND chairman's report carefully. Is the property definitely excluded ( there should also be a reason -- what was it) ? Is there any mention of equity release ?
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Karen.59
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by Karen.59 » Tue Jan 30, 2018 1:57 pm
I'm going to read it again now then come back for your help if that's ok
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Karen.59
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by Karen.59 » Tue Jan 30, 2018 3:25 pm
Hello
I've just finished reading the home equity bit of the proposal and it says
I would be unable to remortgage for the purposes of releasing equity and propose that my interest in the house shall be excluded
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Karen.59
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by Karen.59 » Tue Jan 30, 2018 3:31 pm
There's no mention any where in the report about equity release
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kallis3
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by kallis3 » Tue Jan 30, 2018 4:00 pm
Do you have any equity?
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