www.iva.co.uk

Hi, we recently completed our IVA but had a condition for 2 additional payments in lieu of equity in our vehicle at the time! The 3 additional payments commenced May 11. We received a letter 18months ago giving us the option of amending our IVA terms (to a more lenient one in regards to the re-mortgage in 4th year clause. It did state that we would have to make12 additional payments if re-mortgage was not an option) which we agreed to. We have now received letter asking us to
provide 2 valuations and a mortgage redemption statement. Our house has been valued at £77,000 and we still owe £68,000 on our mortgage! The new clause stated that 'any remortgage would be a maximum 85% loan to value of the property less the existing secured borrowings. In the event that the valuation of the property the equity share is less than £5000(gross) the property is excluded from the arrangement.' HELP what does this mean? Based on the figures I gave above would we be expected to remortgage our house or make another 12 months payments if we cannot secure a remortgage??? Thanks in advance!!

My understanding is that the remortgage would be a maximum of 85% of 77,000 - 68,000. This gives you a negative figure so as long as the valuations show the property is worth this then your IP will probably request that the further 12 months payments clause does not apply.
I would get the valuations asap and send off with your redemption statement and hope that it all comes to a close!
Well done for getting so far

You talk about equity in a vehicle for which you are paying additional payments? But then go on to talk about equity in your property? I assume that these are two entirely separate assets?

Kazzafunk's calculations are correct - so there should be nothing else to find and your IVA should conclude very soon.

Hi Melanie, we have completed the 60 payments as per the agreement but are currently making 3 additional payments (a clause in the original agreement) in lieu of equity we had in our car at the time the IVA was started. In order to complete the IVA we have to submit 2 house valuations and also a mortgage redemption statement. So hopefully we are about to make our penultimate payment which is the 2nd of 3 additional payments. just confused/ worried that we may have to remain on our IVA for another 12 months because of the equity clause.

I doubt that very much on the basis of the facts you have provided.