Equity and Evaluation

[DebtDummy]

My hubby and I received our draft proposals. Today is Saturday and we would have to wait until Monday to ask the IP. So, I am asking now hoping someone will assist. What is an notional selling clause(???)I saw it mentioned somewhere on the boards, but can't find the post. It had to do with selling the house and in the event of a BR(???) or something and fees(???).

''I will make available 100% of the available remortagage of the equity in the property to my Supervisor in the sixth year of the arrangement.For the avoidance of doubt the calculations of equity will be based upon the evaluation of the property undertaken within 6 months of the commencement of the IVA and the mortgage redemption figure obtained at that time. The amount raised is to be $6000.''
We understood this to mean that they get £6000 of the equity even if there is more available.Even £50 more they get as an example. Right?

The property evaluation obtained in in 2007 will be the same evaluation used in 2013? What if properties do not appreciate in value over the years? Housing market goes up and down. Remember the 1990's? Gee, this clause applies to ALL IVAs. Yes ,or again they are truly *individual*?

We are meeting face-to-face before signing the 'official' proposal. I just thought someone could shed abit of light over the weekend.


All I have left is my humour.

[MelanieGiles]

What and your IP does not work on Saturdays!!!

I think you mean notional selling costs. These are costs which would be attributed to the sale of your property, were this to be forced under bankruptcy proceedings. As such, they should be taken into account under IVA proceedings and this acts in your favour as the equity sum to be raised is therefore reduced accordingly.

Your IP is seeking to mark the level of equity in the property to be calculated six months into the arrangement. I would seek to do it now - as the property could go up in six months time meaning you might have to raise more money. He/she is trying to have this limited to £6,000, which is I assume what the equity figure is now. I suspect that creditors will modify this out, but you will have to wait and see at the creditors meeting.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[DebtDummy]

The notional selling cost were the words I was seeking.
I shall add them in the draft. The equity amount is small. I did get an actual appraisal from 3 estate agents in the area. They did vary though by £10000 in 1 case and by £20000 in another. I wonder why the flucuation on the same house? The 3rd came closer to the truth, I think. They amounts were added and divided by three to acheive a figure.

Thank you very much for the clarification. I thought he received the whole 100% because of the wording. Legalese is a confusing language.[V]

No he does not work on Saturdays and goes home early on Fridays, but
when I do catch him in, and he has time to converse via telephone,he is a kind older gentleman with decades of experience and knowledge.

I just hope and pray I can start my new job soon. This CRB wait is ridicules! Someone posted here regarding CRB's and she said her colleague has been waiting 16 weeks! They are not transferable anymore.

Say, can he file this through the courts without my working or is that a bad move? Probably not because then the creditors meeting would have to be held;and if accepted a payment would be due the following month. Hmmmm,too high of a risk for us. I shall ask him how that would work though, Monday.

Again, thank you for explanation. This is a great site!



All I have left is my humour.

[MelanieGiles]

Good morning DebtDummy

You should not enter into the IVA until you are absolutely confident that you are in place to make the payments - ie are back at work. An extra couple of weeks will make absolutely no difference to your creditors, and you will just continue worrying about your CRB in the meantime.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[DebtDummy]

Ohhh, agree. I would never enter into an IVA without employment. I am fearful another creditor may attempt another legal instrument on the house or hubby's earnings though. I become very frustrated and tearful when they simply can't wait. I sent a photocopy of my signed contract stating hours and pay to my IP, along with any updates from the CRB. It seems I am doing all I can and yet...that is not enough.

We shall see where this debters journey leads.

Thank you for answering.


All I have left is my humour.