Equity clause in a linked IVA. Would the total be for each of us or the total between us ?

[belgarion]

hi with the equity clause it states if you have £5000 equity you must try to remortgage or pay an extra 12 month me and my partner have a linked iva and a joint mortgage so would this be £5000 each of the 85% or £5000 in total cheers

[David Mond]

Clause 9.3 of the IVA Protocol states:

"If the amount of the debtor’s net worth net of remortgage costs in the home at the review date is under £5k, it is considered de minimis, and does not have to be released, and there would be no adjustment to the IVA term."

Hence that applies to each of you if you have two separate IVA's which is what I believe you have, albeit linked.

[Niobe]

Hi and welcome to the forum.

Have a chat with your IP about this - I have a seperate IVA to my husband and we have to realise £14k each when we try to remortgage shortly.

It does depend upon your own agreement.

How long have you been in your IVA?

[MelanieGiles]

I concur with David, but the issue of interlocking IVAs and how the deminimis level is to be interpreted, could be made clearer within the wording. Something to be raised at the next Standing Committee meeting David?

[belgarion]

thank you for your replies but i am still not 100% sure i understand for example is it.
a.check equity at 100% and if above £5000 release it if possible or 12 months extended
b.check equity at 85% and if above £5000 release or extra 12
and the other question is about linked iva although 2 separate ivas is it
a.check equity together and for example there was £8000 then this is above £5000 so release or 12 extra
b.there is £8000 there which means we both have £4000 there for under £5000 each and iva would conclude
c.there was £8000 equity so we both have to find £8000 each.
thanks in advance for replies cheers

[MelanieGiles]

Given that there is confusion, and we don't know the specific terms of your own IVA, it woudl ne wrong of us to coment further, and you should look to your own IP for absolute clarity.

[luluj]

I know the equity clauses do confuse lots of members - as Mel says your own IP will be able to provide definitive guidance on your own case specifics...good luck and let us know how you get on.

Regards

[David Mond]

Thanks Melanie, I'll certainly bring it up.

If the net equity in a property is £10,000 and it is owned by two parties then it falls within the de-minimus rules and nothing needs to be paid into the two separate IVA pots.