My wife and I have IVA's and have just started our 5th year so will need to look at re-mortgaging in 6 months. We have a joint mortgage, so do we both qualify for the £5,000 deminimis over 85% of the house value, or do we get £2,500 each? We're really close to the £5,000 but really don't want another 12 months of paying!
My thinking is that each IVA will look at each persons share of the equity and apply the £5k de minimis to each ---- but I am not certain. Hopefully an expert will be along and give us both a better answer.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It is my understanding that your IVA's are treated individually and it is therefore "your share" of the equity so if you own the property as "joint tenants", the equity would be split 50/50 and the de minimus clause then applied. My husband and I own our property on a tenants in common basis and have a declaration of trust specifying that he receives a certain amount of equity before the remaining equity is split (he put down a large deposit on our house from his own money). Therefore, in our situation, he would receive this amount of any equity before my share is calculated so it would not be split 50/50. The usual situation though is for you to be joint tenants unless you have specified otherwise, so any equity after 85% LTV and mortgage/secured loan would be split 50/50 (assuming this is stated in your IVA proposal).
