Equity Release Clauses

[andy9848]

Hi
I have the following clause in my iva ....

The debtors property is to be professionally valued immediatly upon acceptance of the proposal. 75% of the debtors equitable interest or £6000 whichever is the greater is to be realise and paid to the supervisor before completion of the arrangement. To protect the creditors interest the supervisor must ensure that a caution is registered against the property.

My understanding of this is that my mortgage is 144k and the house valuation was 150k (two years ago when i accepted the iva) so the equity is 6k, so i have to pay back 75% of 6k = 4.5k or 6k whichever is greater which is obviously 6k.
No where in my iva does it say about having house revalued later in the iva ??? So am i correct in asuming that i only have to pay my iva monthly and another 6k and not get my house revalued again ??

Many thanks for your help

[jpj]

I think you will have to get your house revalued in year 4 . you have to remortgage up to 75%, ie if your house is worth 100k you have to remortgage up to 75K (75% LTV) With prices stagnant i should imagine you will probably get away with the 6k, BUT as you only have 6k equity in your property ,no mortgage lender will lend you another 6k so you probably wont have to pay anything!

[Adam Davies]

Hi Andy
I read it as you have explained it.
I would suggest a remortgage sat some point to release the 6k or a secured loan,you will need to keep your IP informed
Regards

[andy9848]

Hi Andy thanks i was getting worried as house worth much more now than 2 years ago.
Have you any advice on a remortgage or someone who arranges on here as iwould like to look into full and final settlement.

I did check with my ip and they said to get my settlement figure just take my number of paymnets outstanding x monthly contribution and add 6k so i guess that fits with what we both think

[Skippy]

Hi Andy, there are 3 mortgage brokers who post on this site - Mikebdomain, Welshboy and Andrew Graveson. They have all had very good feedback from people who post on this site.

[Adam Davies]

Hi
There should be a saving on IP fees if you do look to settle your IVA early,probabaly about 1k for each year outstanding
Regards