I recently posted regarding our final year IP request to release equity from our home, which we only own 65% of in a shared ownership scheme.
They have come back today stating that there is equity in the house, but have worked it out as follows on the whole of the house value and then split the equity:
Property Valuation: £95,000
Remortgage based on 85% Loan to Value: £80,750
Less Mortgage Redemption: £52,486
Less Charge to Dover District Council: £7,237
Available: £21,027
65% share in equity is: £13,667.55
We do not think this is right, neither do my mortgage company and nor do the company who own a third of my home! I believe that the following calculation is the correct one:
Property Valuation: £95,000
Our 65% share in the value: £61,750
Remortgage based on 85% Loan to Value: £52487.50
Less Mortgage Redemption: £52,486
Less Charge on house to DDC: £7,237
Negative Equity of £7,235.50
We are having real trouble explaining this to the IP as they say "well this is how we always work out equity", well that might well be, but shared ownership is different and I would be so grateful if one or more of the experts on here could please have a look and let me know if we are talking sense?!!
many thanks
Last edited by jp72 on Fri Aug 05, 2011 5:39 pm, edited 1 time in total.
I've no idea on this one - we'll have to keep it bumped up for one of the experts.
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
I also agree with Melanie
Their calculation is ridiculous, you only own a share worth 61750 and will never be able to borrow that amount against the property with an IVA on your credit record.
I was also under the impression that it is impossible to raise funds in a shared ownership property other than to buy a larger share with the funds going to the other party
Thank you Mel, we thought we were going mad for a while.
We are with GT, and following various discussions today have been told that the actual IPs are rarely there, and the calculation was done by someone in the admin team and check by a supervisor. They have agreed to pass on to senior management to review as we are not happy, but are sticking by their guns as they say they always work it out this way!
Hopefully Karol from GT will see this and take back and try to resolve, otherwise what are our options, where can we go next?
My husband asked to meet with the IP to discuss in details to be told "but we are in Belfast and the IPs are rarely here..."
Thanks also Andy - re your second point yes we were advised of the mortgage protection clause by Moat, who own part of our home, and we are waiting for confirmation of this from them in writing, because GT insist on having it in writing.
According to GT under our agreement, if there is less than £5000 equity then the IVA will deemed complete at month 60 (Sept 2011), so for us getting the equity right is very important, however, if there is equity and we can't remortgage they told me today that wee would go on for 6 months.... yes confusion is setting in!!
Stand your ground, the GT number cruncher has it completely wrong. Your calculation is correct, you are comparing like with like and correctly removing the portion of your house that you do not own.
Hopefully Karol will pick up on this one and be able to help you out.
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
It depends on whether or not you view the forum via the active topics or the last 250 posts. If it is the latter then it doesn't show up as a sticky.
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
Thanks as I said I've been in contact with them.... via those details.... I just wanted confirmation that we are not going mad really, and that our maths is right!!
Although I must admit, using the email with IVA Forum as the subject, as suggested by Karol, works wonders, we had a really quick response.
