Hi,
i hope someone can clarify things for me ?
In my IVA it states that ....in month 54 supervisor required to obtain valuations of the properties. The debtors are then required to obtain two mortgage quotes. The properties are to be remortgaged to a maximum of 85% loan to value less existing secured borrowings. If the sum of £5000 is available on any property, a re-mortgage is to be obtained. If a re-motgage cannot be obtained , the arrangement is to be extended & further contributions paid for a period of 12 months......
As an example then if my property is valued at £125000 and 85% of that is £106250 less existing mortgage £104000 = £2250 does than mean I wont have to remortgage/or pay another 12 months ???
I would be so grateful for any help as i am very worried i may have to pay another year...thank you so much
K
I would treat your property as excluded in the situation you describe but you need to check with your own IP. Your proposal states that 'if the sum of £5,000 is available' which could be interpreted a number of ways. It does not say available by way of the remortgage so could mean available in a sale.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples
I would treat your property as excluded in the situation you describe but you need to check with your own IP. Your proposal states that 'if the sum of £5,000 is available' which could be interpreted a number of ways. It does not say available by way of the remortgage so could mean available in a sale.
It quite clearly states remortgage THREE TIMES in the text quoted by the poster, how could anyone interpret it differently?
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
Goosed.
I am only quoting what it says. It says 'if the sum of £5,000 is available on any property' a remortgage is to be obtained. This is not crystal clear and I am not a lawyer but available could mean after sale. It could be made clearer and remove any doubts but I did not draw up the wording.
I picked up the very thing that Michael did in this quite badly worded proposal term. You could argue that you would only need to raise addiitonal money if the figure available was £5,000 and not in the case of any other sum - although I am sure that the intention was somewhat different.
The way I read it is the way I`m sure it`s intended and the way the poster was informed it would pan out,
If there is at least 5k equity or more in the properties, a re-mortgage is to be sought. if a re-mortgage is unattainable then there will be a twelve month payment extension.
Looks pretty straightforward, even to a luddite such as I.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
Yes but does the extension happen if there is £5k equity in the property of if the maximum you can raise at 85% ltv is £5k? For example if the property is valued at £100k and the mortgage is £90k, does the IVA get extended? The proposal is not clear.
As I posted Michael, the way I read it is any equity available over 5k after the 85% ltv calculation needs to be accessed via re-mortgage. If a re-mortgage cannot be sourced then it`s twelve more payments.
I fully understand that as a professional your job is to scrutinise but to a layman like me, that`s how I decipher it.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
I agree that it is probably meant that way but in these days of everybody sues everybody else, it would be better if it was written more clearly. A clever debtor or creditor could sue the IP if they were not happy with how the IP interpreted the wording so I would always be inclined to get legal advice.
Hi there,
thank you everybody for your contributions...most interesting :)I am not sure if i should have explained that we have buy to let properties and residential...
The wording I detailed was from a Letter to the Creditors 2012...i have taken a look at the wording in the actual arrangement which reads......in the last year of the arrangement, valuations will be carried out on all the properties ( including our house ). If the valuations show our joint interest in the value of an individual property ( after deducting the amount of the loads referred to above ) is less than £5000 then i need contribute no more to the arrangement in respect of that property. If the valuation shows that our joint interest in the property( after deducting the amount of the loans referred to above) is £5000 or more, we will seek to remortgage or sell the individual properties subject to the follwing conditions.
1. the amount required to be paid can be a combination of re mortgage of some or all of the properties or a sale of the properties or a combinaton thereof, but the total amount payable will be restricted to 75% of our interest in the properties with equity exceeding £5000....
We only have one property which has any element of equity in in and I would estimate this at a value of approx £125000 outstanding mortgage £104000
Should i query the wording given to the creditors in the annual report ie the wording in the fist post of mine as in it doesnt say about .is less than £5000 then i need contribute no more to the arrangement in respect of that property..
i really hope i am making sense here ?? thank you again to all..i look forward to your comments
k
The proposal and any modifications are what counts and not correspondence with creditors. You could ask the IP for clarification for your own piece of mind but the proposal is a lot clearer.
