IVA with a Shared Ownership Mortgage

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Lucyj1983

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Post by Lucyj1983 » Wed Feb 12, 2020 8:07 pm
Hi,
I’m new here, how have I not come across this forum before?!
My estimated IVA end date is July 2021.
I have a mortgage for 40% of a shared ownership property.
Does anyone know how the remortgage / equity works with shared ownership?
I understand the process if we had the mortgage for the whole property but don’t understand what would happen re shared ownership.
Thanks in advance :wink:

Foggy

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Post by Foggy » Wed Feb 12, 2020 8:30 pm
If you own 40% of the property you will own 40% of the equity and the calculations will be done on that portion, or your share of that portion, only.
It is sometimes the case with shared ownership that you are not allowed, by the housing association, to remortgage or raise secured lending, in which case the 12 month extension is applied, assuming the equity release clauses are triggered by there being more than £5,000 equity in your share.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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luluj

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Post by luluj » Thu Feb 13, 2020 5:45 am
I would suggest a read of your deeds and agreement re further secure lending. As foggy says in some instances further secure lending is prohibited and therefore an extension needs to be agreed. I would be looking at this now and getting IP to agree re extension so you know where you stand.
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