Hi everyone. Another question about equity release. I have checked my original paperwork, and I have the equity release clause like most people. Mine is in month 66. However, at the moment, and probably the foreseeable future unless property prices shoot up, there will be no equity to release. My property would have to increase by around 25k in the next 3 years. The clause in my proposal states that if I can't re-mortgage, I'll have to get the equivalent sum of equity from a third party, or that my IVA could be extended by up to 9 months. My question is, if there is no equity to be had, will my IVA complete without the need for an extension? Many thanks.
Hi Lou - yes it should do - the equity release clause is only relevant if there actually is equity to relaese in the first place - usually at 85% LTV. To make absolutely sure this is true for your proposal get confirmation from your IP.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Have you checked your original paperwork to see if it covers htis issue..
My paperwork says that if the figure for equity is less than £5k in month 54 then this is classed as dimini mis and is not counted so the IVA can proceed to its conclusion.. If the figure is greater than £5K, I believe it can be as little as £100 over the £5k mark, then I must try to get equity out via a re mortgage, if this is not possible then payments will continue for another 12 months.
