Remortgage help

[victor355]

Hi,I entered into an IVA with the Mrs after falling into Insolvency.
We were advised to wrongly with the idea to sell the property in the first year instead of the final year of the IVA.
We tried to remortgage which is impossible.

[Foggy]

If you have Protocol compliant IVA you need not investigate equity release until month 54.

[victor355]

Sorry Foggy,what’s Protocol complain Iva please

[Foggy]

Many IVAs have pre-agreed standardised conditions, and it should say on the front if they comply to Protocol or, maybe, R3, conditions.

[victor355]

Thanks,I will go through and check

[victor355]

Hi,Foggy,yes it’s an R3,so does that allow me same room to keep the property till the final year. Thanks

[Foggy]

You deal with equity in the final year in an R3 IVA.

[victor355]

Ok,so I can refer to the Supervisor about this (R3 IVA)when they request for sale in the first year although we signed the documents.
Can one appeal in a situation like this.
Thanks.

[Foggy]

They should not be requesting a sale at all, only release of equity and in the final year not year one. A sale in year one could be required in bankruptcy, but not in an IVA.

[victor355]

Hi,Foggy,
I they insist on on sale because I should have raised the issue before signing,can I appeal. Thanks

[Foggy]

You can only make a formal complaint to your IP, which you can escalate to their regulatory body via the government gateway here: https://www.gov.uk/government/publicati ... actitioner

However, if you signed to agree to the sale you are bound by it.

[victor355]

That’s problem but from your experience,can it done ie from 1st to the final year regarding the release of the equity.
Although I signed can ask a solicitor to look into it.

[kallis3]

Firstly, try the complaint to your IP to start with. A solicitor is going to cost you and you won't be able to afford it.

[Foggy]

It is possible to ask your IP to ask creditors if they would agree to moving equity release to the final year --- but I do not understand why this was in your agreement in the first place -- it is not a standard R3 condition, so, I am guessing, creditors asked for the modification and you agreed to it.

There is something more happening here that we do not know about, so cannot really comment ... but I have never heard of equity release being moved from year 5 to year 1, or for the selling of the property to be demanded. One of the main points of an IVA, for those who own a house, is that the house does not need to be sold. This is why many homeowners chose an IVA rather than going bankrupt voluntarily.

[victor355]

Thanks,I will raise that with the IP and will let you know the outcome .