Equity release etc

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Woody60
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by Woody60 » Sun Jul 02, 2017 12:09 pm
I'm in the fourth year of my IVA. I understand that at month 54 I have to release equity or remortgage? It's unlikely I'll be able to remortgage in an Iva so would need the extension. However, my ex husbands name is on the mortgage though not on the title deeds. I've tried several times to get them to remove his name but they won't because of the Iva. To be honest I don't know whether it's best to sell before then and pay off the Iva....or....or! He has no financial input to the house at and hadn't had for 6 years.....any ideas?
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kallis3
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by kallis3 » Sun Jul 02, 2017 12:33 pm
Hi,

Firstly, do you have any equity? Secondly, you won't be able to remortgage so it may be as well to continue on for the extra year.

You will have a restriction your house lodged at Land Registry. You may find you are worse off if you try and sell, and, unless you are thinking of renting, a mortgage won't be available until your credit rating is sorted.

Your husbands rating will be also compromised because of your joint financial record even though he doesn't contribute.
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Foggy
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by Foggy » Sun Jul 02, 2017 12:40 pm
A lot will depend upon what you actually want to happen regarding the house and mortgage -- if you wish to stay there it might be better to ride out the extension, then sort out house and mortgage once the IVA has been dealt with. Of course, as Kallis mentions, you need to ascertain whether the equity clause will even be triggered first.
Woody60
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by Woody60 » Sun Jul 02, 2017 1:19 pm
I'm sure there will be some equity as I've only got 9 yrs left on the mortgage and house prices have risen. I don't want to stay here - was hoping to sell, pay off remaining mortgage and buy a small place in South Wales. He's not my husband - he's my ex. We divorced six years ago before the Iva. I've never defaulted on a mortgage payment in six years. I hope his credit rating won't be affected though because he will not be happy.
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Foggy
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by Foggy » Sun Jul 02, 2017 1:31 pm
Have a word with Shaun Vickery from here. He is a broker who has access to products which will allow you to raise a F&F offer (as a secured loan) to "buy out" the remaining IVA term and extension. He might even be able to advise further on the whole mortgage situation. His details can be found under the "Quick Links" tab ( top left) and then under "The Team" on the drop down, where we also have Ryan, another whole of market broker.
Woody60
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by Woody60 » Sun Jul 02, 2017 4:30 pm
Thank you so much for your replies. I'll certainly contact Shaun.
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Michael Peoples
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by Michael Peoples » Mon Jul 03, 2017 8:14 am
It sounds a good idea to have a word with Shaun. If you can get a secured loan and clear the IVA then any equity left would be yours. Your credit file will remain damaged for up to six years from the start of the IVA but some firms will lend to those in or just out of IVAs.
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