I am also just approaching equity release as an ex pjg client now with CF. My proposal wording is very similar, if not the same to those mentioned. I have read and re read the wording on the proposal and Im now a little worried. It does talk about if the valuation shows that 85% of my interest in the property is less than £5k etc, but the illustration given on the position at the start of the iva clearly uses the 85% LTV working out. I had always had this in my head, and Melanie herself talked about the sort of value my house would have to reach for the 12 month extension to kick in. This was a figure based on 85% LTV, not 85% of my share of the equity.
Jed and marathonman, did CF contact you automatically about your valuation, or did you chase them? I'm near enough there, so was going to just get it all done myself and send it to them ASAP. I'd be very interested to hear if you have an update. Fingers crossed for all of us.
Just re read it again!!
"My nominee has provided me with an illustration detailing the method and calculation of such sums which i have understood."
As I said, my calculation clearly relates to 85%LTV, so that should be how CF interpret it, should it not?
Property value - £220000
85% of your share in the property value - £187000
Your share of the mortgage outstanding - £201021
Equity to be introduced into the iva - NIL
Your retained share of the equity_ £18979
This was based on the property value at the start of my IVA.
If this is how it has been worded in the proposal and / or Chairman's report.
Mel has always used this method as Supervisor (unless otherwise dictated by the proposal) and I would hope CH do so also.
Unfortunately what the Nominee says now carries little weight, other than to illustrate the intention of the equity release clause.
I have always used this method and, as I understand it, most firms do also. However, there has been a tendency of late, especially amongst the "big boys" to try to re-interpret much of the agreed terms to slew in the creditors favour (however, this is part of my conspiracy theory!.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The quote I used about the method and calculation is in my actual propsal, and the calculation was provided with the paperwork that was sent with it.
Hopefully you have this too marathonman, if your proposal was written around the same time as mine.
My PJG documentation clearly shows 85% LTV as the figure, ie:
Property value - £200,000
85% of property value - £170,000
Mortgage - £140,000
Equity available - £30,000
There are also stipulations around how much the mortgage is allowed to increase by if a remortgage is possible:
Please note:
1 The remortgage is limited to a maximum of 85% LTV
2 The incremental cost of the remortgage will not exceed 50% of the monthly contribution into the IVA at that time
3 Remortgage amount limited to creditor return of 100p in the £
I'd be surprised if PJG were using different terms for all their clients?
It's also why I'm not agreeing to the variation requested by CreditFix; I'm happy with the original terms and don't want to modify. I read an earlier post on here about someone who missed a clause 'sneaked in' by GT on their variation and this sort of thing makes me very suspicious/concerned!
I always took as 85% LTV which is what my proposal snd report state. Mel always used LTV. And also she said the equity was £5000 each not between us as stated on each of our proposals. So if house £100,000, 85% is £85,000. If owe £82,000 on mortgage theres only £3000 equity available. So iva ends at month 60. Thats hyperthetical figures but how it was explainedto me.
Hi All
We all appear to be singing from the same hymn sheet but Credit Fix don't.
I emailed saying the same as we're all saying and that as a result I had nothing further to pay and there reply was:-
"The 85% is in relation to a re-mortgage only.
We look at the full valuation if you are not re-mortgaging.
Using the lower valuation there is still equity in your property of £14,888.98."
I shall be speaking to them Monday as I was too busy yesterday and to be honest it was probably better I didn't as it's given me a chance to get all the docs sorted and I may have said something I regretted!
My docs clearly state under the heading of Valuation that 85% of my interest after deducting mortgage etc is less than £5000 "then I need contribute no more to the arrangement in respect of the property."
I'm sure everyone else from PJG has the same wording so will be wanting then to explain how they can ignore this as why would I re-mortgage if I had nothing to give! Arghhh!
CF didn't contact me about getting the valuation and redemption figures sorted so I just got on with it. In fact the only times they have ever made contact with me was to make sure I had changed the bank details last year for the Standing order and then the email I had from them this week!
Huh?? That makes no sense! If house included and not sufficient equity iva ends at month 60. If there is equity above £5000 (or in my view aboce £10,000 in an interlicking iva) then you try remortgage. If cant remortgage, the iva continues for 12 months.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by abbiesmum2003
Huh?? That makes no sense! If house included and not sufficient equity iva ends at month 60. If there is equity above £5000 (or in my view above £10,000 in an interlocking iva) then you try remortgage. If cant remortgage, the iva continues for 12 months.
That's my thought exactly.
85% of £145k = £123,250
Outstanding Debt = £120,111
Equity = £3139
So nothing to pay and they say as I'm not re-mortgaging they work out the equity on the full valuation!!
Nothing in my proposal that allows them to do that!
Last edited by marathonman on Sat Mar 21, 2015 3:21 pm, edited 1 time in total.
Thank you Foggy. Thats how Ive always understood it to be. Lets hope CF sort it out. Seem to be getting throughF&F with relative ease! Equity release should be as straight forward!
