IVA and mortgage issues. Advice.

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moh794
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by moh794 » Sun May 07, 2017 4:02 am
Hi my iva ends in dec17 i was for 6 years, there is property which is mortgage on my name but its my brothers i mentioned when iva was arranged 2012 in the iva agreement its mentioned as brothers aquity but i think they have put on restriction now my brother wants to sale is it going to cause any problem. Advice.
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kallis3
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by kallis3 » Sun May 07, 2017 8:02 am
Hi,

You will find a restriction on it lodged at Land Registry. Speak to your IP and explain your circumstances again and I am sure they will be able to help.
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Foggy
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by Foggy » Sun May 07, 2017 9:05 am
Hi. Why was the IVA for 6 years ? Was this to account for the property ?
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moh794
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by moh794 » Sun May 07, 2017 4:16 pm
HI, yes the property is brothers but mortgaged on my name iva was for 5yrs then they add 1 more year in the agreement its says assets excluded my brothers aquitable interest in the property currently £££££, then why they add into restriction order i did't understand that,
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kallis3
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by kallis3 » Sun May 07, 2017 4:24 pm
Even though it is in your brothers name, you are paying the mortgage and if it is sold you stand to benefit from the sale so I believe that is why they have done it. I do stand to be corrected though.
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Foggy
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by Foggy » Sun May 07, 2017 4:30 pm
moh794 wrote:
HI, yes the property is brothers but mortgaged on my name iva was for 5yrs then they add 1 more year in the agreement its says assets excluded my brothers aquitable interest in the property currently £££££, then why they add into restriction order i did't understand that,



It appears they have excluded your brother's equitable interest, but not yours. If you are also on the title deeds, as I presume you are, you have an equitable interest too, unless you can prove otherwise. A verbal agreement between you and your brother will not suffice. Without sight of your paperwork it is difficult to see what they have actually done here, but you need to discuss this with your provider. Who are you with ?

Your brother selling could be a problem unless you sort this with the IP -- as whatever they deem your share (in the absence of proof to the contrary) will be payable into your IVA.
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moh794
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by moh794 » Sun May 07, 2017 4:39 pm
I have no assets, and why they added 1 year extra is it because at the end of term I won't be able to remortgage.
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kallis3
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by kallis3 » Sun May 07, 2017 4:46 pm
I believe it is because the mortgage is in your name.
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Foggy
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by Foggy » Sun May 07, 2017 5:27 pm
You might feel you have no assets, but if the mortgage is in your name, so are the title deeds to the property (or, at least, they should be). So, on paper you are a home owner.

The 6 years from the start MIGHT have been to exclude the property (in which case there would have been no restriction) or, it might have been simply because the creditors wanted 6 years --- this should have been explained at the time --- and will need to be clarified now --- only your IP will know, unless ( as it should have been) it is in your paperwork and chairman's report.
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moh794
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by moh794 » Sun May 07, 2017 7:11 pm
Yes you are right the creditors wanted 6yrs
So it that means at the end there is no remortgage hassle ?
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kallis3
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by kallis3 » Sun May 07, 2017 7:18 pm
I think it will be sorted - the restriction will be lifted once your IVA is finished and you have your completion letter.
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moh794
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by moh794 » Sun May 07, 2017 7:28 pm
Thanks for advise, is it possible that I have 8 months remaining the amount is 3400 if I offer them lump sum of 1800 will they accept ? shall I talk to my ip, I am getting as a gift from families.
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moh794
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by moh794 » Sun May 07, 2017 7:34 pm
Sorry it's 2400 balance remaining.
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Foggy
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by Foggy » Sun May 07, 2017 7:47 pm
They might accept 1800 -- but you would have to get a wriggle on because it takes a few months to organise and you will run out of time.

There will be no remortgage hassle -- IF we are correct in the assumption that the extra year was in lieu of equity (real or imagined). Again, your IP will confirm the position.

Best of luck with the offer.
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kallis3
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by kallis3 » Sun May 07, 2017 8:31 pm
Agree with Foggy - you might find time runs out before you have an offer accepted. Make sure your IP knows your gift is only available for a full and final offer.
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