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Posted: Fri Dec 06, 2013 10:03 pm
by karen wills
I am in month 54 of my iva and have just obtained a valuation and redemption statement to see if we have enough equity to remortgage.
The valuation is 195,000 and our mortgage outstanding is £178,174.
It says in our document that if there is equity in excess of 85% loan to value having regard to the deminimis level of £5000.
I am not sure how to work this out.
Posted: Fri Dec 06, 2013 10:28 pm
by UpToMyNeckInIt
...what it means is that you can only be asked to remortgage to 85% of your property value.
In your case, 85% of £195,000 is £165,750.
Assuming £195k is a reasonably accurate valuation, as you already have a mortgage of £178K, you should not be expected to remortgage, as your current LTV is a shade over 91%.
In a modern protocol-compliant IVA, this should also mean that your IVA concludes after 5 Years.
Run this past your IP to be sure, and check the exact wording of your IVA.
Good luck.
Posted: Sat Dec 07, 2013 8:16 am
by Adam Davies
Hi
You will not be able to secure a mortgage so your IVA may conclude after the five year point but it will depend on how your IVA is worded
Regards
Posted: Mon Dec 09, 2013 11:53 pm
by Course
Sorry to hijack but how would you work it out if it was a joint mortgage and my partner wasnt in an IVA only me .. for example mortgage remaining £145,000 and house value £175,000
Posted: Tue Dec 10, 2013 9:05 am
by UpToMyNeckInIt
Course,
I belive (I'm in a similar situation), that only your half of any available equity is at risk (the other half belongs to 'the other half'!!!).
In your example however: 85%LTV of £175,000 is £148,750.
As you jointly only have £3K equity to release (so your equity available is £1,500ish), you should fall within the £5,000 'de-minimis' clause that most IVA's contain. You should not, if this is the case, be required to attempt remortgage and your IVA would not normally get extended for a 6th Year.
Best dig out the paperwork to be sure of your exact terms etc.
Good luck.