www.iva.co.uk

I am coming to my 5th anniversary of my iva I have had a valuation by a registered estate agent of £250k my mortgage plus another further charge against my house is £190k what is likely to happen next

Morning Juliedc13,

This will need to be sent into your IVA supervisor. Who are they? There are so many variables it's crazy!!. Assuming that you are not on the new 2014 IVA protocol, and the wording is such that "secured loan" is not mentioned, the following may apply.

Normally, you would have something in your terms along the lines of....

"At month 48 but not after month 54, you shall try and effect a remortgage of YOUR interest in (Property X).

Do you share the mortgage with a partner? as this can make a big difference.

Basic calculation is: -
(Property Value x 85%) - Outstanding Secured Lending

So for you...

(£250,000 x 85%) - £190,000

£212,500 - £190,000 = £22,500

***NOTE - If this is a joint mortgage, you will need to half the £22,500 as YOUR interest in the property is only 50%.***

Based on your figures you will be asked to try and remortgage and release some of that equity in the property. The chances of getting further borrowing are very slim.

In summary, You will be expected to try and raise either:

£22,500 (if you are sole owner of property
OR
£11,250 (if you are joint owner of property)
OR
Should you not be able to get the remortgage, an extension to the term of your IVA will be applied. This is in lieu of the inability to remortgage and release the equity.
This should be capped at your current monthly payments.

hopefully others will come on and fill in what I have missed. However, it really is down to your individual T&C's and who you are with, as to how it exactly works.

Good luck, and hope things progress well. Especially now you are so close to the end!

There is nothing to add to your figures Simon as they are spot on. This will normally be the case but Julie will need to speak with own IP to make sure that there are not any other modifications or conditions specific to her case.

Under normal conditions an extension looks the most likely outcome.

Thanks Simon,most illuminating
both myself and husband are in a iva with Freeman and Jones and have a joint mortgage (interest only) which ends in Jan 2018

Hi Julie - suspect your IVA will be extended for 12 months further payments on assumption you will not be able to remortgage. You could get a third party to offer a lump sum to settle.