Would a house valuation be used as part of agreeing an IVA. Bought my house 2 years ago for £250K with a £210K interest only mortgage. Planning an IVA for £45K worth of unsecured debt. I had imagined the house would be worth about £220K but have just had a valuation of £250K.... So, technically the equity could clear the debt (just), but of course there are no such mortgage products...
Am I overcomplicating this, is it even relevant to an IVA?
It is very relevant to your IVA Ben, as your IP will need to disclose the fact that a professional valuation has been carried out and confirm the property's current value in your statement of affairs. If there is enough equity, which if released could clear your debts, then creditors may not be minded to accept an IVA.
Are you sure that the £250k valuation is not over-optimistic? It may be worth getting another one carried out on a forced sale basis just to copare the difference.
hi
this is what happened with me , i was told to get a valuation by an astate agent ..
he valued my house at £180k . which i thought was very high due to the fact the house did,nt have a kitchen or central heating ,due to building work , and still has,nt....but he said the chances of getting 180k on the market was very slim and proberbly would only receive bids of 150k by builders...
should i have got a forced sale valuation ..
my morgage is 141 and is interest only..my debts are 38k..
please could advise me on the matter ...
many thanks ..vinny
Good advice Melanie.. The agent felt the house was worth more than £250K but due to the stamp duty threshold advised it would achieve that figure. I will get another 2-3 valuations before deciding, not quite sure how to get a 'forced sale' valuation from an unsuspecting estate agent but will make sure I get a realistic rather than optimistic view.
I know this is an IVA forum, but would any of the IP's here be able to work with me on a DMP if it looks unlikely that an IVA would be approved?
There is nothing wrong in stating to the agent that you want the valuation done on a forced sale basis. Valuers, IPs and creditors all understand this basis, which is usually around 85% to 90% of open market value.
Most IPs would be able to provide you with a DMP if an IVA was not approved.
