Could you please help

[stickman]

Equity Release
Could you please help
Mort72.9k
Secd Loan 44.8k
Prop Val Approx 130k
Total Debt 49k
If prop val after 4yrs is 140k how much equity release be.
Thanks

[carlmcmullen]

Hi,

Not taking into account you mortgage reducing over the next four years, then i would suggest realisable equity would be in the region of £2-£3k.

Given this it is unlikely you would be expected to release equity in the final year and I would probablly propose an extra 12 payments instead.

Carl

[stickman]

Hi Carl
We talk again thanks.
Could you eaplain how you get your release figure bearing in mind like you said my mort wil be less in 4 yrs also as it stands now mort 113k prop val 130k 17k eq

Thanks

[carlmcmullen]

Creditors work on the formula of releasing 85% LTV

So...

Property worth £140,000 x 85% = £119,000 (max mortg amount you would be expected to get)

£119,000 - mortgage (£72.9k) - Secured Loan (£44.8k)= £1,300

So all you need to now take into account is the amount you will be reducing your mortgage and loan by over the next 4 years

Hope this makes sense

[stickman]

Makes perfect sense thanks.
Done some really basic sums(probably way out)
After 4yrs
Mort 43.7k
Secd loan 26.9k
Total 70.6k
119k max mort
Equity 48.4
Still owe 38k so I assume they would want me to release that 38k from the equity.
81k mort=1573 p/mth
50 more than present inc DMP payment.

Now the only problem is is getting Black Horse to agree to an IVA from me which frankly is a no go as I spoke to one of the IVA forum advisors today and they said I had no chance as B/H makes up 30% of mycreditor vote.
All advice greatly received

Thanks
Sorry Carl forgot to add the secd loan to the total fig.
Should read 81k mort plus 26.9k secd loan
total 107.9
Equity 11k
108k mort = 2097 over remaining 5 yrs = 576 more than now
not worth it is it
DOOMED

[carlmcmullen]

I hate that word (Blackhorse) they are very against IVA's which is such a surprise given they are linked to LLoyds who accept the majority of IVA's and have not hurdle rates.

I would love to give you some possitive advice but from experince they reject everything.

I will give Blackhorse a ring for you tomorrow to see if I can find out what there current policy is on IVA's but is suggest it still the same

[carlmcmullen]

Stickman...

Have you got confirmed balances for all of your debts ?

Is there not a chance that the blackhorse could come in less than 25% ?

How long have you been in your DMP for ?

[stickman]

Thanks a lot Carl also see my edited last post.
Told you I was useless at maths!!!
Its not worth it is it

[stickman]

Working on bals from latest cccs figs the horse is my third highest creditor.
Been on DMP 1 YEAR

[carlmcmullen]

Under the new IVA protocol, which came in place on the 1st February, part of the terms and conditions state that your new mortgage payment increase must not be more than 50% of your IVA payment.

So when you bear that in mind it may well be that your creditors will not expect you to release up to the 85% mark, if you are paying £250 in an IVA then your mortgage payment should increase by £125.

(sorry didnt mention this earlier - only just getting my head around all the changes)

Also in your previous post you said blackhorse had £12k of your £50k debt which means they only have 24% have you confirmed the balances, or are you using a mothly CCCS statment to get the balance ?

[stickman]

Just the monthly cccs statement

[carlmcmullen]

The CCCS monthly statment are not accurate, it is worth ringing round to get accurrate balances to evaluate the true level of Blackhorse.

I see these statments every week and often change as they are estimated most of the time.

[stickman]

Thanks will try and get more accurate figs tomorrow.

[carlmcmullen]

Hi Stickman,

As promised i have just spoken to blackhorse about there current voting criteria.

They tell me that every proposal is viewed on its own merit and they consider alot of factors before making a decision on how to vote on proposals.

They need to look at how much you borrowed, when, how much you have paid back already, how many missed payments you have had, what attempts you have already made to repay this debt, the estimated dividend and the return in bankruptcy.

He did tell me that there are no minimum dividend criteria and if they feel you have made sufficient attempts already they would not vote on the proposal.

The gentlemen i spoke to was actually very helpful and had i been able to provide him an account number he would have given an answer over the phone as to how they would view a proposal for an IVA.

I don’t want to give you any false hope but it certainly worth having an IP approach blackhorse with your case to see how they view it.

[aklmg]

i proposed mine with 75% REMORTGAGE and my variation accepted with 29p/£ on 29th jan 08.