Hi just got off phone to aperture regarding my equity
They have said it has been worked out on 85% ltv
Valuation of 98775
Outstanding mortgage of 79156
=19629 equity
_3.5% costs =3453.17
=16176 equity ÷ 2 =8088 my share
_ 85% ltv =6874 my share of equity
Don't understand their calculations
Any comments of what to do
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Aperture are now going down the route of interpreting the clause to mean that you should pay over 85% of your equity share. This is contrary to the method used in Protocol calculations, which, in your case would be:
Valuation 98775
x 85% = 83958
Minus mortgage of 79156
Equity based on 85% LTV = 4802
The total equity, calculated the way it was intended to be, is de minimis, so there is no need to release equity nor extend the term ( assuming you have the usual de minimis clause).
Some arrangements actually have reference to this calculation embedded in them, so Apertures interpretation can be challenged on that basis. Check yours carefully.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I would echo what Foggy has said, check carefully. You clearly have no realistic prospect of releasing equity so now it is a question of an extra year or not an extra year. Stand your ground would be my advice.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
If you've not had it done, then get your own valuation done.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
With aperture the way it is calculated varies by "individual ip practice" so you can have variations within the same company.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Hi - As Foggy says check your proposals to see what calculation/example (if any) was used so that you know whether you have extra evidence to back up your complaint. I'd be happy to then cobble an outline for you.
Can I also suggest that you may also want to challenge the valuation - this may be easier that challenging their interpretation of the equity calculation.
Hi Lisa
I am happy with valuation as I go this myself
It states in my husbands modifications by Kpmg
Equity
The amount of the net worth to be released will be based upon affordability from income and leave the debtor with at lest 15% of his net worth in the property
Where it is appropriate to remortgage the limits will be
Remortgaged would be a maximum of 85% ltv
The incremental cost of the mortgage including cost of any new repayment will not exceed 50% of the monthly contribution at the review date
The net worth released will not exceed 100p in the £ excluding statutory interest
The mortgage term does not extend beyond the later of the debtors state retirement age or existing mortgage term
The amount of money introduced into the arrangement will be the mortgage proceeds less the costs of the remortgage including any costs to redeem any existing mortgage
If the amount of the debtors net worth net of remortgage costs in the home at the review date is under £5k it is considered de minimums and does not have to be released,and there would be no adjustment to the iva term
We also have written in elsewhere
The month 54
About equity
The property shall be remortgage X to a maximum of 85% ltv less existing bortowings
I would be grateful of some help as to drafting a letter
I also looked up annexe 6 and 7 and how they calculate net worth in equity
So I think I should demonstrate their calculations in my letter too
