www.iva.co.uk

Does this make sense to anyone? Our valuation is £ 115000 the mortgage redemption figure is £104297 then had this from ip
The 85% applies when considering a re-mortgage, as there is no equity at 85% then we would not ask you to attempt a re-mortgage.

 

However, as there is equity in the property an extension is required. Are you happy that the valuation is accurate?

 

Anyone help

Hi I think I understand what you are asking...
A lot of IVAs have a clause that at the end you either a) remortgage the property and pay a share into the IVA or if that is not possible then b) continue paying contributions for 12 months in lieu of the lump sum remortgage monies.
What I think you are being told is that there is less than 85% LTV equity in the property so you won't be able to remortgage in which case you will still need to continue paying into your IVA so creditors receive something for the equity. I.e if they cant get a contribution from your equity one way they will get it another. Hope that makes sense.

But does it not just apply on the 85% whether you could remortgage or not? There would be no equity at that stage?

Yes that is what i think and yes we have the £5k clause. I don't think we should have the extension.

Any experts advise please.

just tried to edit my post, but deleted it by mistake! Ours was all figured out on the 85% LTV. these are our figures copied from an email sent to me by our case worker, on how they come to the equity figure:

Estate agent valuation £62,500
Adaptive valuation(on behalf of IVA) £66,450
Average £64,475

85%LTV £54,803.75

Mortgage outstanding: £51,351

Equity £3452.75

so although we have equity we don't have enough to force another year.

So based on that and our figures do you think we shouldn't have the extension either? Who are you with?

Valuation £115000
85% LTV £17250
Leaves £97750
Redemption figure £104297
Surely this doesn't leave any equit?
Thank you

we are with Personal Debt Helpline, I don't hink you should be paying another year - definitely query this

put it in writing to them, with your figures from above, sometimes they just need to see what is glaringly obvious!

Thank you for your help i have queried and waiting to hear back.

It does depend on the actual wording and any modifications. Some proposals/mods say 85% of the debtor's interest to be introduced and the olkd protocol cases say different things. By all means query this with your IP as they should be able to explain in detail what is owed and why.

As Michael says, wording does differ, but, if calculated in the accepted "normal" way, the equity here is de minimis and the property should be excluded, no extension.

Hi newtoallthis, I'm in exactly the same position as you. House valuation £125,000 so 85% LTV = £106,250 and mortgage of £108,500 so negative equity BUT at 100 LTV i.e. £125,000 - £108,500 = £16,500 equity and therefore I may be asked to extend in lieu of this.
My case is currently being looked at by IP so will let you know what they say.

It's worth having a good read of your chairman's report and original proposal.
- Is your IVA Protocol Compliant https://www.gov.uk/government/publicati ... a-protocol
(9.3 If the amount of the debtor’s net worth net of remortgage costs in the home at the review date is under £5k, it is considered de minimis, and does not have to be released, and there would be no adjustment to the IVA term.)

Newtoallthis and Chrisdc99

Based on the maximum remortgage being 85 % I would suggest that you both owe nothing further but obviously depends on your own proposals

Good news!! Heard back from creditfix and no extension due #9786; 3 more payments to go!!!