www.iva.co.uk

Hi All,

I was wondering whether any of you out there have any advice or have been in a similar situation.

I am about to apply for an single IVA, however my partner has concerns surrounding the House Equity issue.

Basically, when we purchased our home 5 years ago, she put in £45,000.00 deposit, which we both agreed is her money should we ever decide to separate etc. The rest of the equity (If any) would be split 50-50.

Because of the equity release during an IVA, both of us are concerned that the creditors could potentially take 50% of the equity which includes the £45k that my partner put down as deposit.

Has anybody been in a similar situation? Are there any ways around this?

We only verbally agreed betweeb ourselves that the £45k would remain her money, we never thought to seek legal advice as to whether a letter should be drawnup by a solicitor.

As such, I am unable to proceed with my IVA application until we can resolve this.

Kind Regards

Diesel wrote:

Hi All,

I was wondering whether any of you out there have any advice or have been in a similar situation.

I am about to apply for an single IVA, however my partner has concerns surrounding the House Equity issue.

Basically, when we purchased our home 5 years ago, she put in £45,000.00 deposit, which we both agreed is her money should we ever decide to separate etc. The rest of the equity (If any) would be split 50-50.

Because of the equity release during an IVA, both of us are concerned that the creditors could potentially take 50% of the equity which includes the £45k that my partner put down as deposit.

Has anybody been in a similar situation? Are there any ways around this?

We only verbally agreed betweeb ourselves that the £45k would remain her money, we never thought to seek legal advice as to whether a letter should be drawnup by a solicitor.

As such, I am unable to proceed with my IVA application until we can resolve this.

Kind Regards

I was going to say exactly the same situation but with partner providing £80,000 deposit

However we did get this agreed legally I am afraid via solicitors and had copy letters ready to be sent to IP following phone calls I made when putting the IVA together.

The IP never requested the papers but we have them , her £80,000 is ringed fenced !

re Verbal agreement over to the experts . I assume she could prove it was her money ??

Hi Diesel, as long as you have a paper trail to show the £45k deposit then the IP you have selected to represent you should ensure this is kept out of any equity release clause.

Keep us posted as to how you get on.

Regards,

You and your partner should execute a Deed of Trust, protecting her interest in the event of financial difficulties or separation

Hi All,

Thank you for the great advice. Regarding the Deed of Trust, how do we go about this? Do we contact a solicitor? If so, do you know how long these things take to produce as I am really eager to get my IVA application sorted.

Thank you.

Hi, after speaking to a solicitor, they have advised that we require a severance in tenancy which would
legally split up the proportion of equity in a legal manner. I am hoping that this does not take too long to arrange and also hoping that it doesn't cost a fortune

Good luck...you're on your way! X

It is an easy task and should not take too long or be over expensive in fees