my house is fully paid in 3 months time.so will have equity of 120,000. what are the chances of me having to remortgage at end of term. i have been told by ip they will want a remortgage of 20,000. however house is jointly owned but i am seperated from partner she still lives there with child. would i b able to pay extra year instead,dont want to cause her any more pain. she would not agree to remortgage and because house is jointly owned wouldnt it require both of us to do it.
What normally happens is that you are expected to release 85% LTV on your share but the chances are that you wouldn't get one anyway. It would not have to a joint one anyway.
thanks for the reply Niobe. no my ex is not in an iva. sorry didnt understand did u mean that she wont have to be involved in applying for remortgage in final year.
What do the terms of your own IVA say about equity release legs? And did your ex-partner agree to the equity release provisions at the time you entered into your IVA? Did she sign the RX1 form which would have been lodged at H M Land Registry?
Your IP should have made sure that she fully undertood the implications of what she was signing at the time. This may well be academic as it may be very difficult for you to get a mortgage whilst you are in an IVA. What provisions are there within your IVA in the event that this cannot be affected - it is usual to extend the term by no more than one further year.
Thanks for your reply mel. I was already seperated from wife before i took out iva. They have said that if i couldnt remortgage i would then carry on paying in to iva for another year. ex did get advice and was told that the RX1 form she signed was only to inform land registery if house was put up for sale.
when remortgage time comes up mel. would i apply on my own or would she have to be involved in it? In the event that i couldnt remortgage would i still be able to pay for extra year even though their would be large equity in house or would i have to sell
If your proposal states that if you can't remortgage [very unlikely] then your IVA will extend for 12 months then this is what will happen.
I wonder if your IP will request that you try and obtain a secured loan rather than a remortgage ?
Whether you were separated or not at the time you entered into the IVA, the position of the co-owner of your property should have been carefully considered. The filing of an RX1 is not just a procedure for notifying H M Land Registry of an IVA, but deemed to be an acceptance by the co-owner of the need for further financing against the property and an indication of their willingness to this.
IPs must always be sure to ensure that non-insolvent co-owners are given full details of the IVA, and the opportunity to seek independent legal advice with regard to the implications upon them in this regard.
It may be academic due to the lack of funding around in the mortgage marketplace right now, but things could change on that front over the next five years. You would have to get your partner's agreement to a remortgage - the mortgage company will not provide lending to you on a sole basis.
