EQUITY SHARE

[no money eva]

After reading someone elses post about the 4th year release, I read my chairman's report and is says that I must release 100% of my equity share if over £5000, if it is under then the house will be excluded. If I am unable to remortgage then the term will be extended 12 months.

My question is that we have a 95%LTV mortgage interest only currently. My husband wage is £1900 and mine £600. How is the equity shared as he pays most of the bills the income. My understanding is it should be 25% ish of whatever equity is available if any. Am I right in my calculation.

Thanks, I have a long way to go before I need to worry about this but would rather know what I am dealing with.
Thanks again.

[Adam Davies]

Hi
Your share will normally be 50% of the equity.
Is your partner also in an IVA ?
Regards

[no money eva]

Thanx andy, no he has a DMP. But with his wage he pays the majority of the bills so I thought the fact that he has been paying the mortgage as it were since we have had it, it would be spilt into how much we pay into the house, ie 75% to 25%.

[MelanieGiles]

If the property is registered in both names, the equity is usually divided on an equal basis. You could argue that your husband is entitled to a higher share, but I doubt that your IP would accept this without hard evidence to support your claim.

[no money eva]

Thanks Melanie, I am probably worrying about nothing really as market is unlikely to change dramatically in the next 4 1/2 years and we are in negative equity until May 2010 due to Early redemption fees but even after that according to latest valuation before IVA we will have £2k equity and we already have a 95% interest only mortgage. So value would have to increase drastically (I think not).

Thanks though.