Payplan: Equity Clause

[pms9999]

On the 25th August I have to make a one off payment of £7,493.79 which is the same figure of my equity as reported in the Chairmans report.

Payplan are saying that if I pay that payment on the 25th of August but it's a direct payment but it's not from the remortgage of my house etc then i still have to remortgage?

Surely a £ is a £?

[Adam Davies]

Hi
Is the figure quoted a set figure and not an estimate of your equity release ?
If it is set in stone then it doesn't matter where those funds come from,i;e a third party or a remortgage.
You must try to speak with someone higher up the food chain at Payplan
Regards

[ray_a]

This appears strange what does your IVA actually say about this as this is the documaent that you have to follow.

[pms9999]

What it says in the letters from the supervisors is;

59 monthly payments commencing on 25 April 2008 at £283.00

1 monthly payment commencing 25th August 2012 at £7,439.79

What is says in the report is;

1.8a Based uponthe valuation provided to the nominee and the claims of secured creditors, 75% of my equitable interest in my residential property, to include my interest in any endowment policy, as indicated by the summary sheet and outcome statement, will be realised and paid to the supervisor before completion of this arrangement.

b) By signing these proposals I consent to an application being made by the Supervisor to a restriction being placed at the Land Registry on the register for the property or if appropriatea caution against first regulation

c) Should I be unable to realise my interest as established in 1.8a the supervisor may call a meeting of creditors to consider varying this sum or the duration of the agreement.

[debbiw]

Hi, I'm with payplan. I have to release approx £7k in Year 4. My husband is going to pay over the £7k from money that he is saving, (he has no debt) so we don't have to remortgage on the house. A £ is a £, so it doesn't matter where the money is coming from !

[pms9999]

Hi Debs,

Do you have the same clause as me?

Why is my case officer telling me different?:-(

[Adam Davies]

Hi
Because sometimes they have not been trained properly and lack the knowledge to advise correctly.
A bit scary when you consider that it is peoples quality of life that they are dealing with
Regards

[debbiw]

The thing is as long as you pay the money over, then i can't see what the problem is. Alot of people don't want to remortgage their house, and be stuck with additional payments well after the IVA has finished. My mum said she would give me the money at the end of my IVA to pay over too,
I will remortgage if i have to, but as i said before a £ is a £, so why does it matter where it comes from. At the start of my IVA i asked melanie giles if my mum could pay the amount over, and she said yes, it wouldn't be a problem.
I will dig my chairmans report out, and let you know about my clause. Email your IP and ask him.

[pms9999]

But if you owed 60k originally and house prices go up that 75% of the equity could be worth more so they would rather get 75% or the minimum of 7.5k wouldn't they?

Thanks for everyones help so far.

[debbiw]

I have to get two valuations in year 4. Which ever comes back with the highest value, i have to pay over. They said that if i pay over 100% of my equity, the IVA would complete, and no more payments would be made to the IVA.

[pms9999]

One of the dept managers has come back to me on email.

1) You are correct in your thinking that if you were to receive a large windfall, the maximum you would have to pay is our costs, your creditors full amount of debt plus statutory interest.

2) Your equity proposals were not overridden by an equity modification, so the amount you owe from equity in 2012 is as proposed i.e £7,493.79. When the time comes for this payment to be made, frankly, neither your creditors or us are too concerned whether it comes from a re mortgage or a partner/ friend pays it for you.
On receipt of £238.00 x 60 payments and £7,493.79 your IVA will be satisfied and you will be free of debt.


Thank you Mr John Cottingham.

[debbiw]

Great news pms999 x

[Adam Davies]

Hi
Nice to see that the advice you received on this forum was correct,shame about your initial advice from Payplan.
It would be better for the advisors to say that they will get back to you if they are unsure rather than give inaccurate info.

Regards

[pms9999]

Tell me about it Andy!

That was after the first contact escalated my question!!!!