Expert help needed re release of equity

[Til]

Dear all,

In our chairmans report it makes various notes with regards to releasing equity. There are multiple clauses and most seem to overlap each other or say the same thing in different ways - very strange!

Our IVA is for 6 years already. However some of the equity release clauses say we must release any equity in the last 6 months of the IVA, others say in year 4 - hence possible ommissions due to normally working on 5 year basis but ours being 6 years???

So please can anyone answer me these questions:

1. In a 6 year IVA when is it normal to expect the equity release?

2. If our current mortgage deal ends in 3 years time, would an IP sometimes permit you to release equity in the 3rd year instead of later (subject to being able to get a new mortgage of course) so that we could hopefully get another fixed rate when ours ends?

3. If we could not remortgage, could the IVA be extended to 7 years in theory or is that not permitted?

I will of course double check these questions with our IP but due to Bank Hol I just hoped maybe an expert would know what is normal re this in a 6 year IVA?

Many thanks for any advice. I know it is ages off for us yet but I am a worrier even for things this far away!!! [:I]

[MelanieGiles]

Your insolvency practitioner should have deconflicted those modifications rather than leaving you with uncertainty. Did they speak to you on the day of the creditors meeting, and send you copies of the modifications before confiming the IVA accepted?

It is impossible for me or any of the other experts to give you definitive advice about your own case, but I do suggest that you get your IP to confirm everything in writing as matters do seem muddled at the moment.

[Til]

Thanks Melanie - I have emailed them to clarify.

Yes they spoke to me to go over modifications but they never mentioned these clauses then so I agreed the IVA over the phone. Then when signing the report because it was so lengthy (one each for my OH and me and both approx 50 clauses each - page after page!) I think I did not take it in properly and only spotted the confusion when re-reading it all again a couple of days later when the stress had lifted a little. [:I]

I have emailed them now to get them to confirm it to me so sure it will be clarified shortly - and I am still happy to be in the IVA no matter when we must do the equity release (we will make this work) - however hope this gives anyone else out there a tip - clarify the equity clause as it can be confusing!!

[MelanieGiles]

Another example of a client not being aware of what they are agreeing to on the date of the creditors meeting. For anyone out there with meetings pending, please ask you IP to fully explain the modifications to you in full - ask for them to be e-mailed, as they will stay with you for the next five years or so.

[Til]

You are so right Melanie.

They only mentioned a few points over the phone and it only took about 10 minutes if that.

I am sure we will find a way around this confusion but people should be made aware as it may be something they would not have agreed to had they known

[plasticdaft]

I think the overwhelming feeling of getting the iva accepted clouds ones head and that modifications should be discussed the day after a creditors meeting,because clearly many agree to things they are not fully understanding of.

[moretolife]

gosh TIL.....it just shows how things are so different.for everyone ..our report only had 15 clauses and only 1-11 were for us the other 12-15 didnt relate to us at all.....i can understand how confusing it must have been to have to work through 50 or so clauses...esp when all we can think of at the time is..."wow...accepted...sign and send back who cares what it says."...i think melanie is correct..there should be a proper ecxplanation at the time and a period of time to allow it all to sink in..

i hope you get the clarification you need

[Til]

Thanks PD and TOL [:)] you are oth right...
We were so releived to have a waay out of the nigthmare that we literally trusted what we were told on the phone and then only really read into it after we had signed - stupid I know [:I]

Just counted and OH has 37 clauses and I have 52!!!!! Any need!

Many are re IP fees or when creditors get some cash etc but the good majority all relate to us, the house, any extra income, etc etc

Re-read them all again tonight and found that we have around 12 clauses all together re house and what will happen but that to summarise them they say all of these (baring in mind we are in 6 year IVA anyway):

1. Equity release in 4th year
2. Equity release after month 54
3. Equity release in last 6 months
4. Agreement could be extended by 12 months.
5. Agreement will not be longer than 72 months.
(Since we are in 6 year IVA points 4 & 5 contradict each other!)

All very confusing but luckily and hopefully since it is a fair way off yet we will have time to sort and I have emailed IP to get them to clarify it all for us in writing.

Let this be a warning to all those out there just about to have their meetings or get their chairmans reports!!!

[MelanieGiles]

If your repective IPs were following the IVA Protocol, then you would hardly be seeing any modifications. It is well worth any new people reading the forum asking their IP firms if they follow the Protocol. I do, and find that life is a little easier these days than it was prior to the introduction of this voluntary code.

[Til]

Just to give some feedback on what happened... my IP called me first thing this morning to discuss my email questions... they advised the following:

1. Since many of the creditors gave different clauses they simply listed them all so this is why we have so many and some were duplicated a little.

2. They would, in the event of slightly conflicting clauses, always use the one of most benefit to me!

3. My equity release is not essential (aparantly in Appendix B it states it is voluntary although no clue where appendix B is!) and would be done with a view to ending IVA sooner than 6 years - therefore if no equity release is possible I will just run to the 72 payments and that will be end.

So all in all phew! Seems an odd way to do things but I am not going to argue as they have now confirmed what I hoped they would so happy with that [:)]

[plasticdaft]

Have you got it all in writing Til,just to be sure that they stick to whats been agreed on the phone.

[Til]

Yeah PD - that's what I am going after now - gonna ask them to confirm it in writing to me in case they try to slither out of it later! [:)]

[moretolife]

well...TIL ...after all that confusion...i hope you are feeling a lot better about eh equity and the clauses...what a palaver eh??

[Til]

I know TOL talk about making it confusing for us!
Just hoping I will get the confirmation in writing now - they are excellent at ringing me back but seem reluctant to put in writing - we will see!

But yes feeling very much more relieved thank you [;)]

[Til]

Yey PD - got it confirmed in writing (well email) so very happy [:D][:D][:D]