We are trying to put together a lump sum / full and final IVA offer. We have a possibly complicated issue that there is an arrangement between my wife, her sisters and her parents concerning the house her parents live in. In short:
(1) The property is in the name of my wife and her 3 sisters.
(2) The mortgage (75%LTV) is in their name also.
(3) The remaining funds were provided by her parents.
(4) The only equity is the 25% provided by the parents, as the house has not changed in value since purchase.
(5) The mortgage is a buy to let, and the parents are the tenants, and pay rent to cover the mortgage payments.
We are not exactly sure of the reasons for this arrangement (it was set up my the parents' financial adviser) but I think it was due to trying to get a better mortgage deal for the parents, who were retired, and freeing up funds for investments.
As far as I can see, although my wife is one of the legal owners of the property, she holds not equity in the property. (But I may be wrong about that). What I want to know, is what view an insolvency practitioner might take and what evidence we may need to gather to prove that my wife does not have any realisable asset in the property.
I am assuming that you are in the process of presenting a new IVA Chris, and note one which is already in existence.
This is a matter which is easily demonstrated - ie that your wife has no financial interest in the property, apart from a valueless legal interest. Have you consulted an IP firm yet to act for you, and if so what has been their advice on this matter?
