equity releass

[stevie43]

I was wondering if someone can help. My partner is due to start trying to release funds as per iva conditions. It is her house, her mortgage. The affordability on her salary alone will make it impossible to obtain this. She has the 12 month extension clause is it best to speak to the iva co Creditfix transferred from Pjg just see if she can do the 12 month. Any advise would be greatly appreciated. Thanks

[Foggy]

Hi. This is generally that case at the moment, however she must attempt to remortgage and offer evidence of refusal. I would see what CF will accept as evidence and go from there.

[seagulls]

Most IVAs end in a 12 month extension as it is almost impossible(I would say impossible ! ) to remortgage if you are in an IVA .

[dancer]

Does she have the 85% LTV clause? Is there definitely equity in the property that would need to be released?

[simon1883]

Dancer's question is very pertenant. If your LTV is greater than 85% then there is no equity to realse. No 12 month extension is enforcable. If you do have equity (normally greater than £5,000) and you cannot release equity then an amout agreed by both parties is then repaid over 12 months in lieu of the failure to release available equity.

You will need to remember to ensure that things like fees and any equity spilt is taken into account....

Someone will surely correct me.......

[Foggy]

Hi Simon. As predicted

The scenario you describe above, although correct as far as it goes, is dependent upon how the equity release clause is written in the arrangement ( they do differ from case to case). I have seen extensions applied where there is negative equity and have seen instances where the IP (or at least the case worker) has tried to get an extension contrary to the agreed terms!

This is why it is VITAL everyone reads and understands their own clauses and challenges anything that appears amiss.