Hi we have finally come to the time of having our house valued and are awaiting the outcome from payplan.
But I want to know now what are status is. Our house has been valued at 125,000 and our current mortgage stands 105,472. Am I correct in saying that our Iva will cease and there wont be an extra year?
Thanks in advance
Last edited by Struzzo39 on Fri Aug 15, 2014 5:58 am, edited 1 time in total.
With a "standard" £5k de minimis clause and assuming the clause is interpreted and implimented as most IP's do -- then yes, the IVA should cease with no extension.
However, many clauses are written differently and also interpreted differently.
I gather the equity is calculated in one of two ways:
1) As I do it: 125,000 x 85% = 106,250 - 105,472 = 778 equity, de minimis.
2) As I have seen some do it: 125,000 - 105,472 = 19,528 x 85% = 16598 equity, re-mortgage or extension.
Some arrangements extend regardless of the amount of equity (even if re-mortgaging is impossible because of negative equity!!). Some, indeed, have no provision to extend at all and the IP has to go back to creditors.
I do believe we recently had a situation where the IP used method 2 and was subsequently persuaded that method 1 was correct.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Assuming you have the standard 2009 IVA protocol agreement you would only be expected to extend/remortgage if you had over £5000 equity based on at 85% LTV of your property.
So in your case (based on a £125,000 valuation), your agreement should end this year assuming you owe over £101,250. Which you do !!!
I have had confirmation from Payplan today that I have no equity available based on 85% LTV (example 1 above ) & therefore no extension required
Hopefully you will get the same outcome soon Struzzo39.
Struzzo39, I emailed my valuations/redemption letters to Payplan last Wednesday & had a response on Friday.
In_Deep, it depends how long your IVA is for - mine is 6 years so I got my request for info in month 66, if it's for 5 years they should ask for it in month 54.
Last edited by dancer on Mon Aug 18, 2014 10:31 pm, edited 1 time in total.
Hi i was one of the unlucky ones my house was valued at £155,000 and have 95,000 mortgage so im now paying my sixth year, but i am pleased in a way that i couldnt re-mortgage and get ourselves in more debt.
its weird seeing all the people's names from 2009 when i took my IVA out lol and watching us all come to an end .
Well done everyone xx
Well done to all ...getting to this stage is a great achievement and at worst you will have another 12 months to go .... Hopefully your case manager will act quickly next week when back from leave so you know the position you are in.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I really hope that Payplan deal with it more quickly for you Struzzo39 than they did for me. Although the longest part was the variation to be put forward to the creditors as I had equity. It all started in October 13 and ended in July 14 but hopefully I was unlucky.
Ring the customer helpline & see if they can help - our valuations etc had to be passed to a specialist team for a decision so someone may be able to forward your info on in the absence of your caseworker.
