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We are in year 4 and have been asked to value the house to release equity. We are now in negative equity and our supervisor has suggested an extra year be added, seems to be the same for many. My question is, at the end of year six can they then come back and demand equity from the house if prices go up?

Hi Gary and welcome.

As far as I am aware, if you have to do the extra 12 months, that's it regardless of equity.

I have to try and release equity and won't be able to and I have a fair amount free. I will just do the extra time and my iva will be finished.

I would assume if it's agreed by creditors to take 12 extra monthly payment in lieu of the equity then the IVA should conclude after the twelfth payment. x

Hi, from my experience, when the extra 12 months (for the same amount as your current payment) is recommended, this then goes to a variation meeting. The variation proposal in my case, had the following amendments 1) 12 months extension in lieu of equity. 2) that the property be removed from the agreement and 3) that the minimum dividend be waived. All amendments were accepted. Must admit, I had the same worries as you with them coming back for more.... but all went well and we are now in possession of our completion certificate.

Hi i had to have my house valued in year four of our IVA to look at releasing equity and tried a few building societies with no luck but my IVA company put me in touch with a financial advisor who found a very good deal for me and also sorted out a few of my insurance policies for me by getting better deals and lower payments

I was under the impression that you only did an extra 12 months if you actually had equity in your property and were unable to release it. I started my IVA in 2008 and was told immediately we had to do a 6 year IVA. We still have equity clause however we are in negative equity now. Does this mean I will get to year 6 and they'll add an extra year?

my proposal states that if i have less than £5000 equity then i complete in month 60.if i have more than that and i can't release it then its another 12 months in lou of it.but this only applies to my half of the equity not my wifes half

Nittykitty, older proposals vary wildly in respect of how they treated equity and it's all down to the wording. These days they do tend to be similar, however they can still vary, according to individual circumstances.

Some IP's propose variatiuons on older proposals to bring them into line with the modern ones, but, some are not as helpful. At the end of the day it will be up to the creditors to accept or not.

Each IVA proposal has different wording depending on individual circumstances - in the main when an additional 12 months payments have been made the IVA will conclude and a certificate of completion issued.

I thought an IVA could only run for 6 years and all equity issues are dealt with in years 4-5 which would determine if a 6th year is necessary/appropriate. I believe it is only in exceptional circumstances, such as missed payments that the IVA could extend beyond 6 years. Could be wrong though, I know things have changed under the new protocol.

An IVA can run for longer than six years. Some companies insist on 6 years at the outset which presumably could extend to seven if there is an equity release.

I think we've had one or two posters on here who have been in one for seven years.

Mel actually had one that was due to run for seventeen years (it did fail though!!)

we were told to have valuation ! unable to obtain one got letter from one agent who said they would not value our house due to the market! anyway we went for the final year .Just to bear in mind they could increase your payments during the last year our increased by £25 .good luck its all worth it