Equity in the house re 4th year release

[Helhan]

Hi
We have just started the ball rolling, and have sent paperwork to our IP. The house is being valued this week (three agents) and we are guessing it will be worth between £185 and £195. We have £186,750 secured on house...and whilst I am aware prices will no doubt rise over the next four years, we certainly wont have much equity in the property re release in 4th year...so what happens then?
Thanks
Helen

[MelanieGiles]

Hi Helen

The usual modification proposed by creditors is for you to have your property revalued during the fourth or final year and then any equity therein raising, usually based upon 85% loan to value. If you have equity less than 15% of the value of your property therefore, there will be nothing to raise.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Helhan]

Thanks Melanie.

[tracy.h]

I keep thinking when i was green where iva's were concerned i had an equity release for £33000 in year 5 but looking at the realistic terms of the arrangement no way would that have been feasable,god i'm sooo glad i found this site,and i never agreed to the terms of the iva with the company i went with.
It should be a learning curve to us all really look at the equity release clause in your iva agreement before you sign on the dotted line,you think your home is safe but not always so.

Tracy