thanks re all the advice, Hubert I def understand the forced sale bit, I only used zoopla as we are still a few months off getting the valuations and I was looking for a guestimate....
Depends who you are with - GT are starting to say that would mean a 12 month extension.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Used to be PJG not CF.....we were already told (at start of IVA) that if there was more than £5k each equity and we couldn't realise it, we would have the extension.
But with £7307 total that's just over £3600 interest each in the property so it shouldn't mean the extension. That's my understanding of the TCs and what we previously said.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
our IP arranged our valuation which gave us £5131 equity which meant an extra year, we queried whether we needed £5k equity each or between us. My interpretation of the terms was each, but IP said it was between us. We had an independent valuation done which brought us below £5k equity and the extra year was dropped!
I was prepared for a fight but in the end thanks to a local estate agent we didn't need to!
getting there ....
Got there!!
IVA started 27/10/2010
final payment 27/10/2015
CC received 6/5/16
Off the register 5/8/16
Thanks Helen. We've had two estate agents do valuations, one was a free service the other we have paid for. Both said house worth the same, all based on the state of the house and others in the area. We both have separate chairman reports and they both mention the 5k so that should mean £5k each.
we have interlocking IVA's, these are copies of emails between me and our IP re the equity release, hope this might be of some use:
from me ...
"where it is demonstrated after month 54 that the equitable share is less than £5000 (gross) the property is to be excluded from the arrangement"
We both signed separate agreements so does this mean we should have £5000 available equity each in the house, as at the moment we have £5131 equity between us which would equal £2565 each?
IP's reply...
It is based on the total amount for example it was a sole IVA (just with yourself for an example) and the mortgage was in joint names you are correct in saying that your share would be £2,565.00 however as it a joint IVA it is overall so for example it isn’t £5,000 equity for a sole IVA and £10,000 equity for a joint IVA it is £5,000 either way, I understand why you would query this and I am happy to answer any questions in relation to this to clarify the position
getting there ....
Got there!!
IVA started 27/10/2010
final payment 27/10/2015
CC received 6/5/16
Off the register 5/8/16
As I mentioned before -- there is no such thing as a joint IVA -- they are two individual IVA's, thrown together for administrative ease. If each member of a couple had their own IVA, not interlocking then this question would not arise.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Both our chairman reports have our names on and then says Mr xxxx xxxx (linking with Mrs xxxx xxxxx) on the sheet that shows assets and monies etc., it shows the (then) value of the house, less the mortgage and then says, cost of realisation £xx leaving a figure that then has it halved for the name of the person on the report. Does that make sense.
The way I see it, though as Helen said they might argue this, if the equity of the house is £7.5k and we have joint mortgage, then my interest in the house is £3.75k, and hubby is £3.75k. each report is individual. All we can do is wait and see, but if it had still been PJG I doubt very much I would be having this worry
So just to clarify on wording, which is where I feel it all has to be individual...
the Report says
''If that valuation shows that 85% of my interest in the property (after deducting my share of the mortgage) is less than £5,000 then I need contribute no more to the arrangement.''
This sentence is on both mine and husbands reports, with our names on the front. It clearly says MY interest MY share. So it refers to one portion of the mortgage and one portion of the equity.
On the Assets Pledged Sheet of the Report it has the following descriptions/amounts (I'm using rounded figures here rather than actual)
Address Valued £70,000
Less mortgage (£65,000)
Surplus before realisation £5,000
Less cost of realisation (£2,500)
Overall surplus on realisation £2,500
50% surplus to spouse £1,250
Surely this breakdown in itself shows that they have split the IVA starting figure for equity in half for each person. So that supports the theory it should be halved now as well.
I presume the wording realisation means 'getting the money from mortgage' So they have assumed a figure of £2500 as the cost of setting up the re-mortgage to get the equity and therefore that comes off the cost of the equity.
