Villa and Latitudee, I assume the short time that mail address was up did the job. However, please, in future, if, or anybody else, wish to exchange email addresses admin can arrange to do so on your behalf, once authorised by the parties involved.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The above link will hopefully take you to Annex 6 and Anned 7 of the 2010 IVA Protocol which clearly explains how it is intended to operate the calculations. The equity release wording was initially poor (my opinion only) in the 2008 drafts, however this was made clearer in the 2010 revision - and the spirit of this should flow back to earlier cases.
Latitudee6400 - your IP would appear to have included some differing equity release terms into your proposal, which do not appear to concur with the Protocol terms - however your proposal states that these override any terms and conditions and therefore I am afraid you are bound by those. In which case if the actual equity is more than £5,000, and you cannot re-mortgage, then you are bound to pay the additional contributions.
You may wish to take this up with your IP, if you felt that your IVA was proposed in accordance with the IVA Protocol 2008.
Hi Melanie,
Thank you so much for your advice. Having finally managed to communicate directly with my IP, he has agreed that there is a precedent to treat the de minimis clause as:
Available equity = ([current market value of house * 85% LTV] - outstanding secured debts)
as per the 2010 protocol. Consequently my IP has agreed to finalise my IVA.
Frankly, I'm in shock, after 5 years of hell,I cant believe that its nearly over.
Thanks to all who have provided advice and guidance. [:D]
Congratulations and well done to your IP. The protocol wording is vague and open to interpretation but ultimately your IP just wants to do their job without complaints or being sued!
No IP firm tries to keep people in IVAs for an extra year just to grab an extra bit of fees and clarity all round makes things so much easier.
PJG Recovery have a free online advice channel at www.debtadvicetv.com. If you are ready to ask us for specific advice or help, then get in touch at www.pjgrecovery.com/contact-us.asp . I look forward to speaking to you.
Hi I'm in a similar situation & wondered if someone could help?
Our mortgage is currently at 103% ltv. We are at/just over month 54 & need to have a valuation carried out.
We think we may just have £5k equity in the property, does this mean we would need an extra year added on? I'm very confused!
Karen
Best thing to do is get the valuation sorted out and exact redemption figures, including and secured loans as well as the primary mortgage.
You can get a rough idea of what people are asking for their houses locally on Rightmove, if you want an initial guesstimate. But, if it's close you need a specific valuation agreed with your IP.
If you have the deminimis clause and equity is £5001 then you need to attempt to remortgage. Failure ( which is likely, will result in a 12 month extension (assuming this is how your proposal is drafted).
If equity is £4999 then the property is excluded, no equity to be released and no extension.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Villa --- sorry my friend, but it is equity ( as arrived at using 85% LTV. If it referred to "releasable equity" then no-one would have to extend or pay as currently no equity is releasable!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy so if equity was 90% ltv, would that be or equity or releasable equity, i spent hours on this their is why its a mess, 90 would be equity but wouldn't be needed to be introduced so is therefore not releasable equity
Is if it was 75% ltv, 10% would be releasable, 15% equity to be kept by debtor so not releasable, i think i may become a equity ip, plus only releasable if over 5k due to ip fees eating most of it up
