house valuation

[mfo]

A client of mine has received notice of a creditors meeting for an IVA proposal for one of his debtors. His belief is that the debtor's house has been undervalued by a substantial amount, approx 30%. Is there any way to address this? Also what would be an average time period from creditors meeting to proposal finalisation? Thankyou for your help.

[mikebdomain]

Hi Mfo and welcome to the forum.

Your client could always pay for a valuation himself. I'm sure one of the IVA experts will be along shortly to answer your questions.

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[mfo]

Thanks Mike, if he does this will it affect the IVA process and subsequent offer to him do you think?

[mikebdomain]

Mfo - Not my area of expertise I'm afraid.. So I couldn't say.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Adam Davies]

Hi mfo
An interesting post from someone on the other end of a proposed IVA.
Your client could speak with the IP proposing the IVA and raise his concerns.In an IVA proposal there is no formal valuation of the property and the IP relies on the debtors information.Your client can vote NO to the proposal but may be outvoted on the day.
There is normally 21-28 days notice of the creditors meeting and the IVA is formally accepted on the day of the meeting if there is sufficient yes votes[75% of vaue of debt held that vote on the day]
The debtor will almost certainly have to release equity in the fourth year and this will be done via a remortgage and formal valuation so any under estimate of the propery value will be corrected at this point.

Andy Davie
IVA.co.uk Spokesperson

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http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[mfo]

Andy, thankyou for your advice and info, much appreciated.

[MelanieGiles]

Insist that you are provided with a copy of the professional valuation used by the IP in preparing the proposals. Then get a second opinion if you feel it is still undervalued.

What is the basis of the proposal - lump sum or contributions with a final year equity release?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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