The wording seems odd as 85% of your equity is a lot of money to find from a third party. If you have the option an extension is clearly best and just strange no mention of a remortgage at all.
You could try and settle the IVA now by way of a secured loan if affordable but if you are confident of getting the extension this may be unnecessary. You really should ask your IP for clarification.
Hi I have checked my paperwork this what it says. Remortgage in month 54 will be at max of 85% LTV. The incremental cost of the remortgage, including cost of any new repayment vehicle will not exceed 50% of the monthly IVA contribution at the date of remortgage.
If the amount of debtors net worth of net of remortgage costs in the home at the review date is under 5k, it is considered de minimis, and does not have to be released, and there would be no adjustment to IVA term. The monthly payments arising from the remortgage will be deducted from the contribution . If the increased cost of the mortgage means that monthly contributions fall below £50 per month, such monthly contributions are stopped , and IVA concluded.
If was explained that if unable to obtain a remortgage , the supervisor will have the discretion to consider accepting one of the following alternative proposals::: a third party sum equivalent to 85% of the value of debtors interest in the property; or 12 additional monthly contributions ( with the aggregate sum to be paid to the supervisor being limited to 85% of the value of debtors interest in the property..
The part which concerns me is the 3rd party!!!
Value of property 230k. Mortgage 140k. Joint mortgage with my wife who has nothing to do with IVA .. Also have a secured loan of 18k on property. Just started 5th year of IVA. Debt 35k pay £260 per month plus 10k ppi claimed back.
The link UpToMyNeckInIt has posted in this thread above shows a debate regarding this very same issue,
Melanie Giles posted on that thread that she considers the `third party contribution` wording NOT to be a secured loan, so this wording`s use in any of Melanie`s companies proposals has no inference to secured loans.
To put your mind at rest, it may be best to contact your own IP regarding your concerns.
Last edited by Goosed on Tue Sep 16, 2014 3:29 pm, edited 1 time in total.
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