www.iva.co.uk

how does it work if you bare still in a fixed rate mortgage in year 4 when they want the equity release it will cost a considera
ble amount to come out early they have suggested that they could extend the iva another two years is this standardv practice?

Hi and welcome to the forum. I don't know but someone who does will be along x

You are unlikely to be able to remortgage anyway so an extension is usually the norm these days.

Have you tried to remortgage? The equity sum will be calculated including the redemption penalty, so this could be a helpful way of reducing the amount you may have to introduce.

As Melanie says the equity will have to take into accountr any early redemption penalty before it is calculated. However, even if there is a bit of equity I do not see why the IVA should be extended by two years and not one unless the IP wants to charge extra fees or creditors have demanded it. Given that it does not sound like creditors have even been consulted, I see no reason for a two year extension.

Which IP is suggesting this?

h no this was a comment by the admin staff yesterday whilst completing year 3 ins and outs form. the extension would be instead of the 'equity' but would be the equity if you see what i mean, no equity still owe equity so would then extend iva to get equity back if we stay with our mortgage company and do not try a new one. if we cant get renewal mortgage as suggested by member on her may as well call it a day now and lose the house now terrific iva not cracked up to be the good thing it is supposed to be.

I think there must be some misunderstanding here between you and the staff member you spoke to. Arrange a chat or a face to face meeting with your IP personally so they can take time to explain the situation to you and you can then decide the best way forward. No-one should need to extend an IVA for a further two years.

You don't need to call it a day at all. If you extend the IVA, as the majority of us are having to do, your house will be fine and you will just carry on paying in lieu of that equity.

no misunderstanding they have now said they wouldnt request equity until 6 months before end of iva, or i could through a third party (family type payment) request a full and final figure and they would put that to the creditors,

the extension is if there is no equity or little amount so would extend iva for 2 years in lieu of equity first i heard of i after nearly 3.5 years with them. hey ho
lots of digging around to do

thank you for advice everyone, been at this slightly longer than you Kallis good luck with yours.

It may be worth speaking with your actual IP for clarification rather than just an office worker.
If you have a look on the insolvency service website and click on "find an IP" you will be able to get a direct email address for him/her.

Hi! The extension is usually in lieu of equity that cannot be released. So when there is no equity there is no extension. Do check your paperwork to see if there is anything specific that would allow the IVA to be extended when there isn't any equity...look for reference to a guaranteed lump sum or a guaranteed minimum dividend. If you still aren't happy ask for your IP to have a chat with you. It sounds like the admin staff may have misinterpreted the equity clause.

Ask them to catgorically demonstrate to you why the IVA needs extending by so long, and importantly where they are deriving the power to make this decision from.