Can you sell and buy a new house in an iva?

[unicornsarereal]

Hi Can you sell and buy a new house whilst paying off an IVA? during the 5 year period, if so is there any penalties such as giving up your equity.thanks

[rich25]

normally a rx1 restriction is placed on the property for example if your house equity is included in the iva to prevent you selling.

[Storm]

A potential problem will be the typical terms of a subprime mortage lender is a maximum advance of 85% -90% so you will need a minimum of 10% - 15% deposit plus legal and application fees.

[neverending]

Hi
You can normally purchase a property during an IVA but you will have to get your IPs permision and the deposit will have to be a gift from a relative or friend as any assets that you have yourself will have to go towards your IVA.Also the monthly payment amount of your new mortgagew will have to be no more than your current rental payments.
If you are already a home owner then your IP will probably put a restriction on your property via the land registry making it impossible for you to sell without their knowledge and permision.
A reason that you could sell your house and purchase another is if your job entails a rellocation,again your IP would have to give permision but would look at it favourably.
PS "unicornsarereal"are you a bladerunner fan ??

[MelanieGiles]

If you are selling and purchasing, the deposit monies will presumably be sourced from the sale proceeds of your existing property. Neverending is correct that this must be done with your IP's knowledge and permission.

If you have a 4th year equity release, this will transfer across to the new property, and all of the equity in the old property must be reinvested in the new one.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk