Confirmation of Modifcations - Equity

[caraf]

Hi
I have received my modifications to read and sign and return.
With regards to our property valued and equility release here is what the modifications says :

After month 54 of the arrangement the supervisor will obtain a professional valuation of the property. The debtor will then obtain two re-mortgage quotes from reputable brokers / lenders to satisfy the supervisor that the equity realisations is the maximum achievable. The property shall be re-mortgaged to a maximum of 85% loan to value less existing secured borrowings. A re-mortgage of less than 85% loan to value is allowable where the lower realisation will introduce funds equating to 100% of the debtors equitable share or where the arrangement will receive payment in full. The amount by which the additional secured borrowings increase - the monthly repayments shall not exceed 60% of the monthly arrangement contribution at the time the mortgage offer is octained. Where it is demonstrated after month 54 that the equitable share is less than £5000.00 gross the property is to be excluded from the arrangement without extending the existing term.



Please could someone translate this to english.
And am I right in saying :
In my proposal it said if there was no equity to release I would continue to pay for a further 12 month to conpensate. So I would pay into the iva for 72 months. But if I am reading the above correctly it says if there is no equity to release than the arrangement will not be extended past the existing term. So does this mean I will only pay for 60 months now.

[Sadsack]

Hi

Seems to me that your term will not be extended - therefore your 60 month IVA will remain in place.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[pbeck]

Normally you would only have to extend the arrangement if you were obliged to remortgage the property to release equity i.e. the equity is greater than the limits given, and you were unable to do so, for whatever reason, this allows you to extend the arrangement by one year in lieu of remortgaging.

Are you sure that your original proposal says that the IVA will be extended by 12 months if there is no equity, or only extended if there is equity but can't realise it ?

What the modification says that where the property is to be excluded due to insufficient equity your arrangement will definitely end at 60 months.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[caraf]

i will check my proposal when I get home and post it for you later

[caraf]

the proposal says
if i am unable to re mortgage to release my share of the equity then i will pay a further 12 months of contributions into the arrangement in lieu of the equity and the property will be excluded from the arrangement. This will not constitute as a variation.

[pbeck]

OK, so you're in the clear, because if you have no equity to release, the arrangement won't be extended.

Philip Beck - www.freeivaadvice.co.uk

Licensed Insolvency Practitioner and IVA specialist

[caraf]

thats excellent news !!

[caraf]

Just spoke to clearstart and they have confirmed this, that if my equity is not more than £5000.00 my iva will end after 60 months and I will not to continue to pay another 12 months
Thats brilliant news for me, see creditors do have a heart !!