I am really confused with this can anyone clarify this for me.
We are in a joint IVA and jointly own our home.
If that valuation shows that 85% of your interest in the value of the property (after deducting your share of the mortgage and/or secured loans referred to above) is £5,000 or more (net of all costs to take out a new mortgage loan) then you will seek to remortgage your interest in the property and introduce this money into the arrangement
Is the £5000 per person or the total for both of us?
Inter-locking IVA approved 25th Feb 2013 - F&F offer Accepted 06th July 2017 - Completion Certificate received 20th July 2017
Oo, so glad you asked this! I've been wondering this myself too. Our ivas are interlocking, but we both have our own proposals and chairmans reports. Each proposal says the same thing. It talks about YOUR interest, and YOUR share. If i had an iva and my husband didn't, then it would definitely be £5000 on half of the mortgage. So do we each get £5000 de minimis on our own share? Would be very keen to find out the experts opinion on this!
I'm sure if you read the wording it state "If that valuation shows that 85% of MY interest in the value of the property (after deducting my share of the mortgage) is £5,000 or more" if the property is in joint names then your interest is half of the equity. Therefore the equity in a joint IVA would require both of you to have £5000 or more equity "£10000 total".
This sounds promising. For me, my potential equity would be very close to the £5000. so it would be great if it was £10000! Just hope the wording isn't down to interpretation by my new IP...
I think its going to be an interpretation of the wording. Our IVA clearly states if MY share of the equity is greater than £5000 "my share is 50% of any equity as its a joint property" Some I have read state just "If the equity in THE property" without any mention of the split of property ownership. After all in court if you breakup any property is equally split between both parties.
It is usually £5,000 per IVA which means £10,000 for any interlocking ones. However you need to check the exact wording of the proposals and any modifications.
Six months prior to the end of the arrangement I will arrange for an open market valuation to be carried out on the property by an independent professional valuer. If that valuation shows that 85% of my interest in the property (after deducting my share of the mortgage and/or secured loans is less than £5,000 (net of all costs to take out a new mortgage) then I need contribute no more to the arrangement in respect of the property.
If that valuation shows that 85% of my interest in the value of the property (after deducting my share of the mortgage and/or secured loans referred to above) is £5,000 or more (net of all costs to take out a new mortgage loan) then I will seek to remortgage my interest in the property and introduce this money into the arrangement.
If I am required to introduce any equity into the arrangement then the amount that I will borrow and pay into the arrangement will be subject to the following limits:
• The remortgage amount will be a maximum of 85% of my loan to value (LTV).
• The incremental cost of the remortgage, including cost of any new repayment vehicle, will not exceed 50% of the monthly contribution at the review date.
• The net worth released will not exceed 100p in the £ excluding statutory interest.
• The remortgage term does not extend beyond the later of my State retirement age or the existing mortgage term.
• The amount of the money introduced into the arrangement will be the mortgage proceeds less the costs of the remortgage, including any costs to redeem any existing mortgage and/or secured loan.
• The increased amount that I have to pay because of the remortgage will be deducted from the remaining monthly contributions in the arrangement.
If the increased amount that I have to pay at any time following the remortgage means that the required contribution to the arrangement falls below £50 per month, monthly contributions are stopped, and the IVA is concluded.
If I am unable to obtain a new mortgage, this will not be viewed as a failure to comply with the terms of the IVA and your Supervisor will have the discretion to consider accepting one of the following alternative proposals:
• A third party sum equivalent to 85% of your interest in the property, or
• 12 additional monthly contributions (with the aggregate sum paid to the Supervisor being limited to 85% of your interest in the property).
The only equity modification is KPMG
The Equity should be dealt within in line with the PCIVA guidelines and is only applicable if the equity is not be realised within the first 12 months.
Although we have two separate proposals there was only 1 chairman's report is that normal?
Last edited by harrysmummy78 on Mon Feb 02, 2015 10:09 am, edited 1 time in total.
Inter-locking IVA approved 25th Feb 2013 - F&F offer Accepted 06th July 2017 - Completion Certificate received 20th July 2017
