Questions about selling a property after completing my IVA early.

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by Sarah-Lou » Fri Apr 21, 2017 11:55 pm

I am coming up to being half way through my IVA, and my partner has offered to pay the remaining 8k approx. We have recently had a baby, and my partner is looking to buy a larger property in his name only. My property is in my name with my dad as guarantor. It's 100% mortgage which I paid £167.500 for and is probably worth around £195-200k now. Will part of my equity be taken? And how soon could I sell following completion?
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by luluj » Sat Apr 22, 2017 5:43 am
Was your iva based on releasing equity at the end of your 5 years ? If so this would need to be addressed in the full and final offer.

Once your iva is completed and certificate issued any restriction placed on the property will be lifted and you would be free to sell.
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by Foggy » Sat Apr 22, 2017 7:35 am
A full and final offer amount is based upon the number of payments remaining multiplied by the current monthly amount. If there is equity to be addressed ( which, looking at those figures, is likely) then you need to add on a further 12 payments to account for the extension that would be applied in lieu of equity if unable to remortgage.

You can sell as soon as you get your completion certificate, which should be a couple of months coming, but make sure the IP lifts any restriction he has placed on the property, to avoid embarrassment during the conveyancing process.
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Lisa Thomas
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by Lisa Thomas » Mon Apr 24, 2017 8:27 am
The offer you made should have allowed for the equity in your property. As Foggy says if/when the offer is accepted and you get your CC you will be free to do what you like with your property.

Bear in mind however if accepted some IP firms take up to 6 months to issue a CC...
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