Shared ownership

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tophee23
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by tophee23 » Wed Oct 17, 2018 1:13 am
I have an IVA which is on it’s 57th month. My partner and I are 50 percent owners and other 50 belongs to the housing organization. If for some miracle that I can get a remortgage to release equity, will the IP take all of the equity and leave nothing to my partner? I am with Debt free direct which is Aperture now. The property is worth around 300k and we have 75000 left on mortgage. So if you take our half, it would be 150k and 85% of that would be 127,500. I originally owed 43,000 and been paying 836 a month

127,500- 75,000 = 52500. Are my calculations correct? But half of this equity is owned by my partner. Is that technically correct?
If I can’t have a remortgage, and extend for a year, basing on the figures , will I have to pay more for the next 12 months? Confused.
tophee23
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by tophee23 » Wed Oct 17, 2018 5:59 am
I am on month 57 of my IVA with debt free direct which is taken over by Aperture. I have a joint mortgage with my partner for 50% of a property , other 50% is owned by A2Dominion. Technically I only own 25 %. The whole property is probably worth 300 k . Our joint mortgage left is 74,000 . How much equity is there if I only own 25 percent?
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Foggy
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by Foggy » Wed Oct 17, 2018 6:48 am
About £45k -- enough to trigger teh release clause. However, it is possible that A2Dominion will have a condition to their ownership that you are not allowed to remortgage so the 12 month extension would have to be applied.
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Foggy
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by Foggy » Wed Oct 17, 2018 6:52 am
Topics merged as essentially the same question.
tophee23
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by tophee23 » Wed Oct 17, 2018 8:08 am
Foggy wrote:
Topics merged as essentially the same question.

Thanks for the response. I just checked and it seems I am allowed . In remortgaging, will she be forced to join me for the remortgage? The rough equity of 45 k, is her share taken away from the figure? A2 dominion charges £126.00 for them to give you permission for remortgaging.

There is also a stipulation that a lump sum from a third party maybe considered. In my case, they referred my case to Select Partnership. I’ve read in one post that this woman was “approved” 8k but payable in 10 years with the end result of her paying 20k . If I was offered the same thing, do I have a choice to refuse it eventhough it is amenable to the IP?
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kallis3
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by kallis3 » Wed Oct 17, 2018 8:29 am
Don't forget your partners credit record will be impaired because of your joint financial dealings.

Does your paperwork say anything about having to take out a secured loan.
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Foggy
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by Foggy » Wed Oct 17, 2018 9:25 am
You do not have to take out the secured loan, but they often work out better in the long run than a remortgage at high rates. Don't forget with a remortgage, you are not just remortgaing for £45k --- you are remortgaging the whole of yours and her equity, so the whole new mortgage on the property will be at a higher rate of interest.

Yes, your partner will also have to join in the remortgage as you would be effectively repaying the whole lot to your current lender and re-borrowing the whole lot plus the extra Aperture want from the new.

The rough equity figure I quoted is your share.
tophee23
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by tophee23 » Wed Oct 17, 2018 11:09 pm
kallis3 wrote:
Don't forget your partners credit record will be impaired because of your joint financial dealings.

Does your paperwork say anything about having to take out a secured loan.

Thabks for the reply. As far as I know there is nothing about secured loans. However, if I Am unable to secure a remortgage, my supervisor jas the discretion to accept one of the following proposals/

A third party sum equivalent to 85% of my interest in the property

Up to 12 months ( with the aggregate sum being paid to the supervisor being limited to 85% percent of the property.
tophee23
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by tophee23 » Wed Oct 17, 2018 11:13 pm
Foggy wrote:
You do not have to take out the secured loan, but they often work out better in the long run than a remortgage at high rates. Don't forget with a remortgage, you are not just remortgaing for £45k --- you are remortgaging the whole of yours and her equity, so the whole new mortgage on the property will be at a higher rate of interest.

Yes, your partner will also have to join in the remortgage as you would be effectively repaying the whole lot to your current lender and re-borrowing the whole lot plus the extra Aperture want from the new.

The rough equity figure I quoted is your share.

Thanks for the reply.

What if my partner is not in agreement for a remortgage? I am the only one with the IVA. Does she have the right to refuse?

Granted that I will extend for another 12 months, that 45 k figure, is that going to be divided over 12 months, 85 percent of it?
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Foggy
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by Foggy » Thu Oct 18, 2018 6:42 am
tophee23 wrote:
Foggy wrote:
You do not have to take out the secured loan, but they often work out better in the long run than a remortgage at high rates. Don't forget with a remortgage, you are not just remortgaing for £45k --- you are remortgaging the whole of yours and her equity, so the whole new mortgage on the property will be at a higher rate of interest.

Yes, your partner will also have to join in the remortgage as you would be effectively repaying the whole lot to your current lender and re-borrowing the whole lot plus the extra Aperture want from the new.

The rough equity figure I quoted is your share.

Thanks for the reply.

What if my partner is not in agreement for a remortgage? I am the only one with the IVA. Does she have the right to refuse?

Granted that I will extend for another 12 months, that 45 k figure, is that going to be divided over 12 months, 85 percent of it?



If a remortgage is available your partner will be required to co-operate, if not the IVA could be failed. However, remortgages are still a rare thing to be able to get these days. In the event of a 12 month extension it will be 12 payments at your current rate of payments.
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Lisa Thomas
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by Lisa Thomas » Thu Oct 18, 2018 9:46 am
You will be unlikely to remortgage with the IVA in place so the most likely scenario (if you don't go down the other route of 3rd party lump sum or secured loan) is a 12 months extension of your IVA.
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kallis3
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by kallis3 » Thu Oct 18, 2018 9:51 am
Personally I would want an extension.
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Lisa Thomas
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by Lisa Thomas » Thu Oct 18, 2018 12:06 pm
Not if it doesn't apply because the equity is too low...?
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Lisa Thomas
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by Lisa Thomas » Thu Oct 18, 2018 12:07 pm
Sorry Kallis I'm mixing up the posts on here I thought you were responding to one where the extension may not kick in!
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kallis3
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by kallis3 » Thu Oct 18, 2018 12:42 pm
No worries!! :)
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