My name is Spencer, I’m part of team at Freeman Jones. I am sorry we haven’t explained this very well for you.
As usual Foggy is correct. The approach we take is to calculate the equity at an 85% Loan To Value level. If the available equity is more than £5,000 we would usually ask the client to try to release equity, or the term of the IVA would be extended. For example, if the value of the property is £90K then 85% of this would be £76,500. If the outstanding mortgage balance is £76,000 then your available equity would be £500 so, in this example, we wouldn’t usually ask for an extension or equity release.
Whilst this is our usual approach there may be modifications or other clauses in your IVA agreement. Please do get in touch with me by emailing spencer.last@freemanjones.com and I will investigate the specifics of your IVA for you.
Hi spencer thank you for your response, I have already emailed you. Can I just ask I think I'm just over the equity by £200 can't I just pay this off without an extension? Thanks
Thank you for your email, we have reviewed your case and I can confirm that your IVA does in fact have a modification that was added by one of your creditors. This modification requires you to pay any available equity into your IVA before it can complete.
Based on the property valuations that you have provided being accepted, we estimate that your available equity would be £162 so you would only be required to pay this amount (plus the small amount of additional monies that is due). Once paid your IVA will be closed.
I know that you have spoken to your Relationship Manager who has discussed this with you today.
I hope this helps and please let me know if there is anything else I can do for you.
Hi spencer
Many thanks for dealing with my case, just hope that they accept my valuations which they have received today, finally feel like I can move forward. Thanks again
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi spencer
Many thanks for dealing with my case, just hope that they accept my valuations which they have received today, finally feel like I can move forward. Thanks again
By introducing a modification making you pay in the available equity, rather than allowing an extension, I imagine this creditor was hoping that the equity would be more than 12 months payments ---- as it turned out it was considerably less.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
