Hello - I haven't been on here for quite awhile. Both my husband and I are in IVA's mine still one more year to run (6th year) my husband ended this month. Unfortunately we were not aware of the equity release clause 85%. So now in a panic trying to get valuations, only I am not great at lying so couldnt get an estate agent into the house to value property - anyway finally getting a couple in tomorrow. My question is say I owe £208,000 mortgage on a property that could be valued at £258,000 and our equity comes in at £5,650.00 each (as property is joint ownership) would this mean that my husband would have to carry on his IVA for another 12 months even though really there isnt much equity at all (infact if the equity came in at £4,999 his iva could terminate), could we not give the iva £700.00 to terminate or even £1,000 as my company has £1,000 from PPPI's which they were giving us. I would be most grateful if someone could advise. Many thanks in advance.
If the equity comes in a pound over the de minimis you pay 12 months, a pound under and you don't. No way around it. If you can raise the equivalent of 12 months in a lump sum they may settle.
On your figures above, 85% LTV on a valuation of £258,000 is £219,300. If it is that close it might be worth investing in a surveyor to give an accurate valuation ( estate agents always over estimate ).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Many thanks Foggy, looks like he's stuffed for another 12 months - seems a bit unfair, especially as they gave me 6 years right from the outset, and then we will have this problem again and they will probably make me go into another extra 12 months as well.
As Foggy says if you pay a surveyor or estate agent for the valuation and get them to provide a 'forced sale' one it may be worth it. If the equity then drops to de minimis and the IVA ceases it would be well worth the fee to the valuer.
