My ex-husband entered into an IVA in November 2019. As we both own the house, I was asked to sign an RX1 form otherwise he would have to declare himself bankrupt. My husband moved out of the property when we split 2 years ago.
All I was told was that if I wanted to sell the property we needed to let the Supervisor know.
The property is a shared ownership property. I have sold it and my solicitor has informed the Supervisor. The share price that is selling for is £51,300. The equity left in the property will be around £12,000 (before legal fees have been deducted).
The Supervisor has written to my solicitor who has advised that in order to lift the restriction from the RX1 form, I need to pay £45,000!! This is more than my mortgage.
In the original agreement it says the net value of the property is £10,000. It talks about 85% if it is more or less than £5,000.
Is this right? Can they ask for £45,000?
Any advice would be greatly received. Understandably a property sale / move is stressful enough but with the added IVA from my ex-husband which I have no real awareness of is causing a lot of sleepless nights.
They can only ask for your husband's share of the actual equity, assuming the property was sold at market value (no undervalue transactions). If his share turns out to be less than £5k the equity release clause would not be triggered in any event --- but that is an arguement for your ex to have with the IP.
I would suggest that you write direct to the IP, rather than case support. If this brings no results escalate a complaint to their regulatory body.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk