Do my equity release sums add up

[scooby1963]

Hello all,
Like so many others that have posted before me, I also wanted to say a ‘BIG’ Thank you to all those of you that have taken the time to post threads around their experiences with their IVA’s and of course the professionals who have taken the time to clarify the facts.

I must admit that I tend to peek in occasionally when I am after some free online advice – although I appreciate the information is sometimes conflicting and we are all different with our agreements.

I signed up to the site before our IVA was approved on 31 Dec 2009 and we made our first payment in Feb 2010. So yes, we have 12 months to go of the normal term without equity release. We have been slogging on very much focussed on the end of tunnel being 72 months for us.

Being connected with the military I have just had to renew my Security Clearance (normally valid for 10years in my job) and have just had the misfortune to be sent the additional financial questionnaire which took a day and a half to complete! Needless to say that I found it very stressful (I am the worrying sort) and it was just like those early days when we entered in to our IVA. I feel a lot more relaxed now after reading the related posts and imagine that it could be some weeks before I hear the outcome. It is a distant worry though if there are any further problems with it – nobody knows about our IVA at work or friends and family. We have been completely honest and can do no more.

We are also mindful of the equity release on our property with our 54month point not too far off.
I have read all the arguments.

We are with FJ and I am sure that our agreement states 5% or 12months.
We bought our property in 2007 for 167k and when our agreement was written up the ‘drive by’ valuation put it at 135k. Similar houses in our street have sold for around 140k apart from next doors that recently went for 160k. We owe 149k and have a 10k secured loan on it.

Since reading the threads I am thinking the end of the tunnel for us may be 60 months and not 72 after all. I know it all depends on the valuation figure which I will be surprised if it is above 160k in the current economic climate can I please ask; although we have always thought 6years what is the likelihood we could escape the clutches of our IVA after 5yrs?

Regards, Scooby

[winter_blues]

Hi Scooby, your IVA should end after 60 months but do check exact wording in your original proposal. Your loan to house value is no where near the 85% if your house comes out at around 160k valuation. That's 94% and then there is a £5k margin usually written in.

Make sure you get a house value based on forced sale basis , or 3 month sale basis that generally reduces value by up to 10% as opposed to market value.

Good luck and hopefully you will finish by the end of the year.

[scooby1963]

Many Thanks for your advice winter_blues it is very much appreciated. I don't understand things very easily but I do get you gist. I assume that my IP will contact me before the 54month point regarding the valuation and I did read somewhere that I had to have 2 independent valuations and the cost would be added to the agreement?

FJ have been brilliant so far and I hope that the end of the arrangement will run smoothly too. Regards.

[winter_blues]

Your welcome. Yes, 2 independent valuations - they can be estate agents or private valuers who may give a more accurate valuation. Your I.P may be able to recommend a valuer.

[luluj]

Good to hear from you ... Don't wait to be asked to provide the evaluations ... If your proposal states at month 54, instigate the valuations and mortgage statement and submit the documents to your IP then ... Keep copies of everything you send. It is your responsibility to provide this not your IPs to remind you.

Fingers crossed for you that it comes to an end at 60 months.