Equity Release - one for Ian please

[e.h]

Hi

Me and my husband have an interlocking IVA and it says on the front of each of our proposals "To be read in conjunction with .......". There is a possibility that we will be splitting up (not because of the IVA and debt stress, for other reasons) but not yet a definite.
Can you clarify something for me please?

On each of our proposals it says about the Equity Release figure in year 4 being something like £15,000 odd. Does this mean that we each have to contribute £15,000 or is this the total contribution expected between us both. I think its the latter i.e. we would be expected to find £15,000 between us. If it helps to clarify matters, at the time of us entering into the IVA our house was valued at £250,000 and our outstanding mortgage and secured loan was around the £240,000 mark.

Thanks

Liz
x

[Adam Davies]

Hi
It will be a joint equity release,so if you split your personal liability should be less.
Speak in confidence with your IP and get a clearer picture
Regards

[e.h]

Hi Andy

Thanks for this - just to get this clear in my head, if we stay together (hopefully we will, but you never know), we will have to find £15,000 and not £30,000?

Liz

[e.h]

Sorry about this but want to bump it back into the list as I have another question for the experts.

[ianmillington]

I'd need to see the the clause to give you a definitive answer, but by interlocking the proposals you typically you create one pool of assets and one pool of liabilities, so unless there is something unusual about your proposals I would expect it to be £15k rather than £30k.

How old are your IVAs as your proposals would appear to anticipate an increase in value? Is that realistic in the current climate?

Ian

[e.h]

Hi Ian

Thanks for your reply. We started our IVA in October 2006 so I agree with you that they are a bit optimistic in coming up with the £15,000 odd equity release. Can I PDF you our proposals so you could take a look for me please or is that too cheeky. Its pointless trying to speak to our IP about it as you can never get past the border patrol!

Thanks

Liz

[ianmillington]

Not a problem.

I'll be here for a few minutes so if you ring our freephone number I can give you my e-mail address. Admin wouldn't want me to post it here.

Ian