Well I emailed my IP yesterday advising of intention to put house on market (doing so Friday) and that we will submit a formal F & F based upon any reasonable offer received. Also requested to continue in IVA should no offers be received. Got a reply from one of the IVA administrators saying thank you and will back in touch in a month to see how we are progressing.
I also had a good half hour chat with my current lender about possibility of re-mortgage to introduce funds into IVA - answer was a polite no, not at this present time. All they can offer is one for home improvements if in an IVA which made me giggle as Lord knows if there is one thing which had to be put on the back burner while in IVA, it has been the house.
I also enquired about a mortgage for Joint Equity possibility. Again turned down if going into a shared ownership scheme.
This was from my own lender, with whom I have a relationship and who can see our 100% payment record over 5 1/2 years. Just goes to show there is NOTHING out there right now.
Not downhearted about it. If anything, it makes things clearer.
We sell, then rent, then see what is available 1 yr after IVA finished which is much better than waiting for that 1st creditor's meeting
Well time for an update.
House on market for £99,950. IP informed and proposal sent requesting to continue IVA payments unless reasonable offer comes in within next 12 months in which case we would offer a Full & Final. They will be convening a variation meeting once I get some additional paperwork sent to them.
To recap, we bought property for £75,000 which comprised a £7,500 deposit and £67,500 mortgage. The current mortgage balance to pay is approx £60,500
Equity Release Clause in IVA reads as follows
"I jointly own the property with my wife/husband. The house was purchased for £75,000 and is subject to an outstanding mortgage of £67,500. I propose to remortgage at the end of year 4 to introduce the sum of £10,500, this being 75% of the estimated book value"
Question. Is the "book value" the difference between current valuation/offer price and the price we paid for House? In this case a max of £24,950.
OR - is it true equity which is the difference between valuation/offer price and remaining mortgage balance? In this case approx £39,000.
I ask as an offer of £85,000 has been made on our property. We have rejected as we feel it is a little low so soon but wonder whether it would make much difference given the Equity Release obligations.
A neighbour is VERY interested in our house as an investment so we would like to hold out and see what she offers
Last edited by darlo70 on Tue Feb 17, 2009 7:18 pm, edited 1 time in total.
Actually there was no "formal" valuation carried out at all. It was based on what I expected house value would be so at the time I guess I must have estimated it at around £89,000.
Wonder if I should check sales of similar properties around that time now
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Accuma. I take it a formal valuation to be an Estate Agent and/or surveyor checks out property and gives us a written valuation at the time the IVA started?
Yes, Payplan arranged for a valuer to come and look at our house, and our own building society did a 'drive by' valuation (and charged us £65 for the privilege of telling us that they valued it the same as the other estate agent!)
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
How on earth can they put out proposals like that quoting "book value", when no proper valuation was taken? Pretty dangerous, as you now have no starting point to go on. I suggest that you insist that the formula be based upon a current valuation - which is probably lower than the property was worth when the IVA was taken out.
Property is now on market for £99,950 so it has gone up although I have letter advising forced sale valuation of 10K less.
Perhaps better off insisting it is based on valuation for 5 years ago.
Do you think I should just question THEM as to what valuation was based on? Put them on the ropes a bit because this is starting to look a little dicey
It's been a while. So anyway I asked them how they arrived at the valuation figure and the reply basically stated that it was based on either a figure provided by me, or an average of the house valuations in your area at the time. I'd plump for the former but either way the response it not very clear is it.
I think I should insist on the original figure as this is obviously not "best practice"
I'm so glad that when it comes to my equity release my company will be sending round an estate agent to do it for me!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
