We are almost 4 years into our IVA and I am seeing different statements about duration. I believe mine is 5 years with an assessment on mortgage / refinance next February. if we cannot borrow more against the house I have been told by our IP that there will be nothing more to pay. Others on the forum seem to have other terms which lead to additional payments for another year. Could you advise if I am lucky or deluded ?
Hi Mark -- it all falls down to what is actually written in YOUR proposal. Many of us have different equity release terms.
Generally, these days, the clause goes along the lines of seeking a valuation in year 4. If the equity is under £5k, ignore and finish IVA as planned. If the equity is over £5k, attempt to remortgage to release equity. If unable to remortgage ( which is usually the case in an IVA) the term gets extended by 12 months instead.
The answer to your question will lie in your paperwork.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Is your IVA being operated in accordance with the IVA Protocol Mark? And what is the current value of your properry and amount of the mortgage outstanding?
I am with GT and the house is in negative equity with little likelihood of being even at breakeven before year 5 finishes (next july)
I see some people paying an extra year. Some get another extension to the mortgage. I spoke to GT and they say that if I stay as-is, there will be nothing more to pay after Y5 completes.....it reads ambiguously to me.....still not convinced!
Depending on what is written into your IVA proposal then if you are in negative equity and your IP has said no more payments after year 5 then yes it would end.
If you had equity then you would have been expected to attempt to refinance / pay an additional 12 months.
I was in a similar position with negative or nearly no equity and I had a variation meeting with a positive outcome and thereby the IVA concluded after 60 payments.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
Your IVA proposal actually ought to be pretty clear on what is required. If you can post the actual wording relating to equity release on here we can take a further look for you.
