Equity release

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jayson82

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Post by jayson82 » Wed Jun 29, 2016 8:07 pm
Hi we are now in our 54 month and we are in the process of remortgaging but we are unable to. I was told that if we can't remortgage we can extend by 12 months. When we first set up the Iva in 2011 our house was worth 165,000 but due to Regeneration In our area and our house has been valued at 330,000. We currently owe £109,000. I was really surprised and I know prices have gone up but I am concerned with the high amount of equity they could refuse the extension
 
 

Foggy

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Post by Foggy » Wed Jun 29, 2016 8:35 pm
It is in your agreement, basically, if you fail to remortgage a 12 month extension will apply --- they have to abide by the agreement too.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

jayson82

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Post by jayson82 » Wed Jun 29, 2016 8:40 pm
Thanks Foggy

It states if I can't remortgage we would be granted with a 12 month extension.
It also states also third party source what does this mean?
 
 

lifenoteasy

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Post by lifenoteasy » Wed Jun 29, 2016 8:57 pm
That could be interpreted to mean full an d final or secured loan.

It's the latter you need to look out for.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
 
 

jayson82

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Post by jayson82 » Wed Jun 29, 2016 9:21 pm
This is the wording in my Iva documents


· A third party sum equivalent to 85% of my interest in the property, or
· 12 additional monthly contributions (with the aggregate sum paid to the supervisor being limited to 85% of my interest in the property).
 
 

Foggy

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Post by Foggy » Wed Jun 29, 2016 9:26 pm
Third party sum is interpreted as either a gift from a friend or family member or a secured loan -- in either case, though adding time, the 12 month extension will be far cheaper ! A secured loan for that sort of amount would mean impossible repayments and should not even be considered.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

jayson82

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Post by jayson82 » Wed Jun 29, 2016 9:47 pm
thanks I will speak with pay plan fingers crossed for 12 months extension
 
 

Lisa Thomas

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Post by Lisa Thomas » Thu Jun 30, 2016 10:00 am
Hi Jayson - give your IP the evidence they need to satisfy themselves that you cannot remortgage. On the assumption you do not have a 3rd party willing to gift you a lump sum equal to the remaining payments then the 12 month extension will apply instead.

If your IVA completes successfully you get to keep your house and all the equity.

Best of luck.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

jayson82

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Post by jayson82 » Thu Jun 30, 2016 6:54 pm
Thanks Lisa

I spoke with pay plan and they told me they would not ask me to take out a secured loan as it would be unfair. They said they would be looking to extend for 12 months
 
 

kallis3

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Post by kallis3 » Thu Jun 30, 2016 7:14 pm
That's good news jayson.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Lisa Thomas

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Post by Lisa Thomas » Fri Jul 01, 2016 10:44 am
Hmmmm it's not a case of whether its fair or not - its whether it was part of your IVA terms and conditions, which I suspect given how long ago you started, it was not.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
 
 

Lisa Thomas

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Post by Lisa Thomas » Fri Jul 01, 2016 10:51 am
...and good news that you are now on the final stretch - hopefully it will go quickly for you.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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