Can anyone remind me of the equity release calculation?
It is based on 85% LTV isn't it therefore if house is valued at 140K and 113K is owed on the property what would be the calculation to work out if there is any equity.
There are various ways it is worked out according to what your own agreement says ( and how your IP interprets this).
Generally it is intended to be worked out on a value of £140k -- 85% LTV would be £119k --- so with £113k outstanding the equity would be £6k.
Aperture work it out (unless challenged) as £140k less £113k = £27k x 85% = £22950 equity available. You can see why they like to try to do it this way !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
