www.iva.co.uk

May I ask a question?
Coming to the end of your IVA, you are asked to release equity, you cannot remortgage, but decide to sell. Property is valued at e.g. £150.000 you purchased for £120,000, (potential £30,000 equity) but you only sell @ £120,000, how would this work?
Thanks.

How much do you currently owe on your mortgage, Magpie, and is £120,000 considered to be the current market rate valuation?

Hi Melanie
This was just an example, we actually owe £143000 plus £35000 on a secured loan. The valuation of the propert would be approx. £250000 but in it's present state of repair, considerably less.
Thanks in advance.

There would be little point in selling if you were not raising any equity unless you wanted to do so yourself. If the property is in need of repair this would be reflected in the valuation so at the time it would be worth getting a proper valuer and do not rely on a desktop or internet valuation.

Thank you, Michael.

It may be possible to raise some funds against the property in order to offer a 'full and final' settlement to your creditors. If so, you would then be able to sell the property and retain an additional equity. A lot depends on what you think is the current value of your property.

What would be the penalty (if any) of paying off a secured loan so soon after it had been taken out Shaun?

Thank you Shaun, I'm not quite sure what you mean, but it sounds interesting. I would estimate the valuation to be around £220-230000. How would we go about this?
Thanks.