I am looking for some advice. I am in my 54th month of an IVA and need to provide my IP with my house valuation and settlement figures.
I have decided to go with a private surveyor (Estate agents were not an option as I am terrible at lying) and he has given me a valuation of 90k. My settlement figure comes in at just over 85k plus 1k of admin/early repayment charge. My IP has advised me that if there is less than 5k equity in the property, my IVA will finish after the 5 years but I am really concerned that the early settlement charges will not be taken into consideration bearing in mind that I am only approx £200 under the 5k and I will be forced to pay another year.
Any advise or professional opinions would be more than welcomed
Just let your IP know the valuation figures and go through things with them. They are best placed to advise.
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Surely your IP should be working on the basis of 85% of the property valuation and not 100%? What do the terms of your IVA proposal dictate in this regard?
To be honest Melanie, I wasn't fully aware of this term in the proposal at first, it wasn't until I had an updated T&C's that I noticed this, but when I spoke to my IP's customer service last year they informed me that if I have more than 5k equity in my property, I will be required to either release this or pay for another year, if not, I will be finished my IVA this year. There was no mention of 85% so I think I had better re-read the documents I have and give them a call to clarify this.
It is normally 85% Loan to Value (LTV) and if the equity after that is less than £5k then you would not need to extend/pay out the equity i.e property value £200k 85% LTV = £170k less mortgage balance of £166k = equity of £4k so no equity to be released - but only your own IP can clarify exactly what is in your proposal. Let us know how you get on.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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I have spoken to my IVA company and they have comfirmed that it is 85% LTV so hopefully I will be finishing my IVA this year which is a huge relief.
Thank you all so much for your posts and putting my mind at rest, I would have probably been stressing about this until I had a response from my IVA company.
xx
