Shared Owenership?

[adam090376]

Dear All
I wonder if you can help.
How does being in an IVA affect shared ownership schemes? Would I be refused as I am in an IVA? At the moment I am renting from a private landlord.
Would it be better to complete the IVA and then look into this?
Would I have to release equity after year 4/5 if I entered into this before the end of the IVA?
Sorry for so many questions but I dont want to rent for the rest of my life as we are paying the landlord quite a lot of money every month that could be going towards our own home. Any help would be great.
Thanks
Adam

[tiredandy]

Not sure about the shared ownership part, getting the mortgage half of it will be dificult, as I assume you have no deposit being in an IVA, taking out more loans is probably forbidden, and any lenders will charge mega interest rates.

I am trying to finalise my IVA and was in shared ownership before it started.

Andy

[Oliver]

Talk to your IP about this. I believe that as long as this wouldn't effect your ability to pay your creditors the agreed monthly amount then I don't think they would have a problem with this. The shared ownership company would have to agree also.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[iva_squirrel]

Hi adam_c

You should talk to your IP about this situation. I think you wont have any problems with it as long as you don't fail your payments to your creditors.
And yes, some equity may have to be released towards the IVA.

Regards,
Michelle P.

[iva experts]

Hi Adam,

In my experience I have seen quite a few cases where client's are apart of the Shared Ownership Scheme, so its definitley something worth discussing with your I.P.


Best Regards. IVA Experts

[MelanieGiles]

Do you need a deposit with a shared ownership option? I thought not? As other posters have said, providing your combined mortgage and rent do not equate to more than you are currently paying to rent, then this could be a sensible option to consider. You would not be required to raise any equity at the end of the IVA.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[adam090376]

Hi All
Thank you for your comments and advice on the above subject. I cant see a scheme like this effecting my payments or being more than my current rent, But I will have a discussion with my IP about this and then look into what shared ownership schemes there are around my area. It could take a while before anything comes up but I guess its best to be prepared should something happen. There seemed to contrasting views on the equity release but thanks for answering my questions.
Regards
Adam

[Oliver]

In responce to Mel's question you may need to put down a deposit for a shared ownership scheme with some lenders (right to buys generally don't require a deposit). If this is the case this will have to be funded by a friend or family.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Adam Davies]

Hi
You will not have to release equity at the end as it is not written into your current IVA agreement.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp