IP states that 85% LTV clause does not apply to the de-minimis clause ?

[AlmostThere30]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Desperate Bob

Is it not possible to have a mortgage of 103% LTV but then have £5k in equity?

You need to get a valuation from a estate agent, but if your mortgage is 103% ltv I very much doubt you have any equity.

We bought the house for £163,200 but had a 100% mortgage. We added on the fees etc which took our borrowing to £169,500 (ish) which shows as a 103% LTV.
Surrounding houses are ranging from £160k to £180k, one very similar to ours sold recently for £175k which would mean we would technically have a £5k equity in the house, but not at an 85% LTV hence why I'm unsure what would happen. Harrington Brooks suggested that if we had 5k then we would need to extend, they didn't mention the LTV when advising.
Karen

[AlmostThere30]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by villapb

For gods sake how can you have 5k equity when your mortgage is 103% i give up.....ur negative, also foggy its not equity its releaseable equity

Ps our mortgage provider shows as 103% LTV as they are using the valuation from when we bought the house, not the current value of the house.
I don't understand your comment, was there really a need??

[villapb]

Yeah there was a need as you didn't state todays value, forget what u bought the house for nothing to do with Iva, get your house properly valued and then get up to date mortgage redemption, then see if your 85% to 100% which means your ok, etc etc etc

[villapb]

Ps Harrington brooks are a big beliver that the debtor keeps 15% so don't understand why the advisor hasn't mentioned it

[AlmostThere30]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by villapb

Ps Harrington brooks are a big beliver that the debtor keeps 15% so don't understand why the advisor hasn't mentioned it

I don't know. They seem to have become vague in their advice.
When I called to ask about the 2 clauses (1 states about trying to remortgage & 1 states about the £5k & being deminimise) I was told that if our valuation shows we have equity we will be asked to remortgage/extend as the creditors see it as losing out on repayments. If we have £5k or less then it is classed as deminimise as the creditors see it as not losing out & the IVA will be completed. They never mentioned that the 5k had to be over the 85%, the way they said it made it sound like if we have 5k or more (regardless of LTV) we will be extended.
Karen

[villapb]

Sorry if i come across arsey but this equity thing is a joke and i hope its over next week for me

[villapb]

Ps Karen i think ips need a uniform ruling on this,,,,as many ivas are finishing now from 2009, get them to value your house and then prepare for fight, i have gad six months of battling done lol

[villapb]

Latitude got his closed down with 35k of equity but it was within the 15% so not releasable

[AlmostThere30]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by villapb

Sorry if i come across arsey but this equity thing is a joke and i hope its over next week for me

That's ok. If I need to be extended for another year then I accept that, but I don't want to taken for a mug just because I don't fully understand the terminology if you see what I mean?
HB have already messed up stating our repayments were £12 less than they actually were up to July 2013 so they showed us in credit & we were advised not to make a payment in Jan 2014 as a result. We queried it, but they sent an email with confirmation!? So now I don't have much confidence in them, hence asking for advice here.

[villapb]

First step is get valuation that keeps u on track and go from there imo

[AlmostThere30]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by villapb

First step is get valuation that keeps u on track and go from there imo

We've got an estate agent coming on Wednesday so will see what they say. Will let you know! - Thank you.

[MelanieGiles]

Chaps - there is nothing vague about the equity release provisions - they are all there in black and white in your own IVA proposals.

If anyone is having difficulty in remembering the effect of their particular provisions, do not hesitate to contact your IP's directly to have this confirmed.

[Foggy]

Mel, would this were the case. The wording might be clear to you. The application is obviously, according to recent posts, unclear to some other IPs.

To add to this, it is apparent that this has never been fully, or clearly, explained at the outset of many arrangements.

Not all insolvency firms were created equal.

[AlmostThere30]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy

Mel, would this were the case. The wording might be clear to you. The application is obviously, according to recent posts, unclear to some other IPs.

To add to this, it is apparent that this has never been fully, or clearly, explained at the outset of many arrangements.

Not all insolvency firms were created equal.

This is mine Foggy, hence why I'm confused (others may not be)

3.5) Six months prior to the expiry of my IVA I will attempt to release equity in my home by way of remortgage ( this will normally be after month 54, unless my IVA has been extended for any reason). However, if I am unable to obtain a remortgage for any reason my IVA may instead be extended by up to 12 months

3.6) the amount of the equity to be released will be based upon affordability from my income & will leave me with at least 15% of the equity in the property

3.7) where it is appropriate to remortgage the property through a repayment mortgage (as opposed to interest only) the specific limits will be:
The remortgage will be to a maximum of 85% LTV
The incremental cost of the remortgage will not exceed 50% of my monthly contribution
The total equity release will not exceed 100% of the remaining outstanding debt

3. the costs of remortgaging to release equity will be deducted from the mortgage proceeds and the incremental monthly mortgage payment will be deducted from the monthly IVA contribution. If the increased cost of the mortgage means that the aggregate dividend to creditors falls below £50 per month after fees monthly contributions will be stopped & the IVA concluded.

3.9) if the amount of equity available in the home at month 54 is under £5000, it is deminimise and does not need to be released & there will be no adjustment to the IVA term.

So when I called for advice they reiterated if we have £5k of more then we will be extended. No mention of the 85% LTV so this is why I am confused as to what will happen???

Karen

[AlmostThere30]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by AlmostThere30

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy

Mel, would this were the case. The wording might be clear to you. The application is obviously, according to recent posts, unclear to some other IPs.

To add to this, it is apparent that this has never been fully, or clearly, explained at the outset of many arrangements.

Not all insolvency firms were created equal.

This is mine Foggy, hence why I'm confused (others may not be)

3.5) Six months prior to the expiry of my IVA I will attempt to release equity in my home by way of remortgage ( this will normally be after month 54, unless my IVA has been extended for any reason). However, if I am unable to obtain a remortgage for any reason my IVA may instead be extended by up to 12 months

3.6) the amount of the equity to be released will be based upon affordability from my income & will leave me with at least 15% of the equity in the property

3.7) where it is appropriate to remortgage the property through a repayment mortgage (as opposed to interest only) the specific limits will be:
The remortgage will be to a maximum of 85% LTV
The incremental cost of the remortgage will not exceed 50% of my monthly contribution
The total equity release will not exceed 100% of the remaining outstanding debt

3. the costs of remortgaging to release equity will be deducted from the mortgage proceeds and the incremental monthly mortgage payment will be deducted from the monthly IVA contribution. If the increased cost of the mortgage means that the aggregate dividend to creditors falls below £50 per month after fees monthly contributions will be stopped & the IVA concluded.

3.9) if the amount of equity available in the home at month 54 is under £5000, it is deminimise and does not need to be released & there will be no adjustment to the IVA term.

So when I called for advice they reiterated if we have £5k of more then we will be extended. No mention of the 85% LTV so this is why I am confused as to what will happen???

Karen

The reason for confusion is it states I will be left with a min of 15% equity, but then says if I have 5k or more I'll be extended (even though that's well below 15% equity)