equity release-when the valuation of your property is carried out and the 85% ltv applied,is the equity amount halved when you and your wife, in my case, own the property and I am the only one in an iva? therefore reducing the actual equity that can be paid into the arrangement?
That should be the case but you need to check with your own IP for sure. For example, if your property values at £100k and there is a mortgage owing of £79k then there is £6k available at 85% LTV. If you are both in the IVA then this equity needs addressed by way of extension or remortgage whereas if you are solely in the IVA then it should cease as your share is less than £5k.
This is my understanding and I would be interested to see what anyone else thinks.
Under the terms of the IVA Protocol, it is only the debtor's share which is taken into account for the purpose of calculation, but as Michael says do check with your own IP to be sure. It does not make sense to include someone else's asset into the IVA, unless this is a specific requirement of creditors which the non-insolvent party has agreed to.
I am looking at the equity clause in around 15 months time. I am in an IVA, my partner isn't. My question is this: Will I be looking at the 85% LTV with my partner then getting half the equity to do with as she likes or will I solely be seeking a re-mortgage for half the value between current mortgage value and 85%? I know this is hypothetical as the chances of a re-mortgage are currently slim, but just a point of interest.
