Remortgage

[e.h]

Hi - I have just been reading the posts re the re-mortgage and equity release clauses in IVAs. We have the same clause in our IVA about year 4 equity release, but we had to provide a valuation after just three months of being in our IVA. Why would that be, do you think? Any ideas?

Regards

Liz

[MelanieGiles]

It may be that your creditors were trying to be helpful and limit the future lending based upon a current valuation. Either that, or your IP did not have it valued prior to the IVA and wished the confirm that accuracy of the value you placed on the property.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[e.h]

Thank you Melanie. I seem to recall somewhere in the ether my IP saying at the time that whatever the valuation was when we had it carried out on our property, it would be fixed and we would not have to have another valuation carried out. Does this mean that the 4 year equity release clause will not apply to us, as we were in negative equity at the time of the valuation?

[MelanieGiles]

Quite probably - the clause you refer to was introduced by PwC but is now rarely used. If you are fortunate to have this clause, then you will have no money to raise, but do check the small print in your Chairman's report and verify your thoughts with your IP to be sure.

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[e.h]

I certainly will do that. That would certainly be a relief if we didn't have to worry about that so near the end of our IVA.

Many thanks again Melanie for your extremely prompt replies.

Kind regards

Liz