www.iva.co.uk

Hello can you let me how the equity release in final year is worked out... property value 180000. Reminings mortgage 58900 and secured loans 91000

Hi,

I have never been good at this but hopefully Foggy will be on later to assist.

There are a couple of ways this is done and it will depend upon your exact wording and the IP's interpretation if you have conflicting clauses.

The usual way ( and the way I think it was originally intended ):

Valuation of 180k gives 85% LTV at 153k --- less secured lending leaves you 3100 equity -- below the £5k de minimis so no extension and no need to attempt to release equity.

The newer interpretation, gaining popularity with IPs:

Full valuation 180k less secured lending gives you an interest of 30,100. 85% of which is 25,585, which they will get you to attempt to release or extend by 12 months instead if remortgage attempts fail.

Your paperwork will, hopefully give examples or, at least, refer to the Protocol annex 6 or 7 which details my first method.

Dig it out and have a read -- or ask your IP for his method.

As far as I can see you are already mortgaged to over 85% loan to value so the IVA should close down. Some sloppily worded modifications and proposals are contradictory so stick to your guns and demand the IVA is closed. Any problems and ask for the entire paperwork and a face to face meeting with your IP.