How hard is it to release equity in your property

[catullus]

I Think that we've got a bit confused here.

Normally, the equity remortgage clause requires you to seek mortgage quotes for 85% of value in year 4.If that enables you to release further equity for the benefit of the IVA (having paid off the previous mortgage) that money should go in to the IVA.

Quite separately, the rules of IVA's direct Supervisors that if, from IVA funds, they are able to pay creditors in full (after costs)then the supervisor should also pay interest at 8% for the duration of the IVA, up to the amount of surplus monies that the supervisor is holding.

The balance of funds is then returned to the debtor.

Does that make it clearer?

[brian_g]

Not really.

Think im being a bit thick here. My property now worth approx 130k, an equity rise of 100k, my outstanding mortgage is 30k. the Iva payments are 240 a month and i am nearly into year 4. How much will my creditors want ?

[Sadsack]

Hi Brian

Perhaps I am being a bit thick here too!!!

Lets start again!! Before you entered into your IVA 3 years ago, what was the total amount of money you owed to your creditors?

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[catullus]

If there's enough money to pay it (which there will be) they'll want interest on top of the debt of £28000 x 8% x 5 years = 11200

Add 11200 on to the original amount is 39200

In practice all you will need to remortgage for is the amount that will give creditors thsi return but taking in to account the costs of the IVA.

Any clearer?

[Adam Davies]

Hi
I think that we all asumed that your original debt was more than 28k.
The max that you will have to remortgage for is the 28k,plus IP fees plus interest less amount already paid.
Ps I wish I lived in your area...100k in three years...........WOW
Good Luck

Andy Davie
IVA.co.uk Spokesperson

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

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

[brian_g]

Thanks ,

Think all is clearer now.

[mikebdomain]

Hi Brian_g

It's not hard at all - there are a lots of brokers that can give you free advice on the best way to release equity - usually through a remortgage with a sub prime lender - just watch those fees...

FREE ADVICE IS THE BEST ADVICE