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vlc1507

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Post by vlc1507 » Mon Oct 20, 2014 12:18 pm
Hi we are almost at the end of our 5yr IVA, which has been very stressful and at times difficult but we have always made our payments.
Have had paperwork through for month 54 house value.
Please would someone be able to help with the equity issue. House value expected to be around £220000-£230000 with outstanding mortgage of £182000. It is a joint IVA and a joint mortgage so not sure how it all works. Would like to know how likely an extension will be.
Thanks, any advice greatly received.
 
 

Michael Peoples

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Post by Michael Peoples » Mon Oct 20, 2014 12:50 pm
This is borderline as to an extension assuming you have the standard equity conditions so I would suggest you instruct a valuer. If the valuation comes in any lower than £220k you should not need an extension but anything over that and it then depends on wording and interpretation.

You should also check and see if there are any redemption penalties on the mortgage as this would further reduce the equity.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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vlc1507

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Post by vlc1507 » Mon Oct 20, 2014 1:04 pm
Thank you Michael, Equity clause is 85% LTV with a £5000 de minis clause it is the same for both IVA'S
I am awaiting confirmation from the mortgage company ref redemption statement and have an estate agent doing valuation later today.
 
 

Michael Peoples

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Post by Michael Peoples » Mon Oct 20, 2014 2:11 pm
Make sure and point out any faults in the property and advise the agent that you would like a 'forced sale' valuation. You may have to pay for this type of valuation but money well spent in the long run. We allow this as an expense of the arrangement anyway so you should not be out of pocket.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

vlc1507

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Post by vlc1507 » Mon Oct 20, 2014 5:20 pm
Thanks Michael, Have had estate agent this afternoon and he has said £220-225000, but with reference to needing a new roof and a few other little jobs so would expect to achieve £210000-£220000 on a forced sale basis and the work needing doing.
 
 

vlc1507

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Post by vlc1507 » Tue Oct 21, 2014 9:17 pm
Hi all have received valuation of 220-225 and redemption of 181,910. Does this mean there would be no extension? It is joint iva and joint mortgage. Not sure how the ltv is worked out and where the deminis clause fits in. Sorry to ask just don't get how to work it out
Thanks for any advice
 
 

luluj

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Post by luluj » Wed Oct 22, 2014 5:39 am
Will keep this bumped at the top for you ..from what Michael said earlier anything lower than £220k would probably not mean an extension for you.
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Michael Peoples

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Post by Michael Peoples » Wed Oct 22, 2014 7:32 pm
85% of £220k is £187k which means there is equity available at that loan to value of £5,090. This exceeds the deminimis clause but if there are 2 IVAs then there may not need to be an extension as the equity would be each. That is why I said in an earlier post that this is borderline and depends on your actual IVA proposal.

Had the value been £119k there would have been no grey area at all.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

vlc1507

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Post by vlc1507 » Thu Oct 23, 2014 4:17 pm
Thanks Michael, Sorry I misunderstood your earlier post. Thank you for your response I can see what you mean now it is going to be a close one. Lets hope they are on a good day when they receive the paperwork! The IVA is joint as is the mortgage so assume it will be £5000 de minis each as the equity is shared.
Interestingly though we have only received a request for information in my husbands name and not mine?
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