Can anyone tell me if I have worked out my mortgage redemption figure correctly ?

[shazj1007]

Just a quick one. Just had our mortgage redemption figure as we are at month 54. Looking at it I don't think it's worth getting our own house valuation as I don't think it would be valued less enough to make a difference.
Freeman Jones valuation is £127000.
85% of that is £107950
Redemption figure is £94005.82
We would need a valuation of around £103000 to get away with year six and even I think that's too low.
Can anyone tell me if I have worked it out right.
127000 + 103000= £230000
÷ 2 = £115000 - 85% = 97750 - mortgage £94005.82 = 3745.
There is the £5000 equity clause.

Hope it makes sense! This is how I think it is worked out! !

[Foggy]

Usually worked out thus:

Value £127,000 x 85% = £107,950
Less mortgage of £94,000
Equity = £13,950

But some do work it out differently and much depends upon the exact wording of your proposal. Even a misplaced comma can change everything !

[marathonman]

I would recommend getting a couple of valuations yourself .. no harm in trying. How has your IP come to their valuation ... drive by/zoopla?
If you can get a couple of valuations around the £116k mark or below then I'd try to get the IP to discard their valuation. They have no idea of the condition of your property which has potentially had nothing spent on it for a number of years. Get a valuation done on a forced sale basis ... or explain the IVA them and pay for the valuation ... if it gets you out of paying for another 12 months its worth paying for.

[marcus777]

Totally agree with marathon man ,get a forced sale valuation according to the agent I used there is on average a £20 k difference between that and a market valuation.

[Adam Davies]

Hi

Do you know how FJ got their valuation figure ?

Regards

[shazj1007]

It's a online valuation. Spoke to a couple of agent's about getting valuations but will need to pay for them. Don't know if they would go so low. Is the 5000 clause each or between my husband and I.

[relieved33]

Depends on the wording of your proposal. Some say your share i.e. £5k each, others say equity so some interpret that as £5k total.

Some IPs also let you deduct the cost of the valuation from your payment so ask.

[Foggy]

Are you both in IVA's ( I assume you jointly own the property ) ?

If you are both in an IVA each, it is as relieved says --- IP's differ, proposals differ.

If it is only you in the IVA then it is your share of equity ( 50% usually) that is taken as the releasable figure.

[shazj1007]

We both went into the iva together and the property is on a joint mortgage. I am going to get paperwork out and have another look through.

[shazj1007]

It says 'where the valuation obtained at month 54 demonstrates that your share of equity is less than £5000 gross the property will be excluded from the IVA.'
The paperwork says it is a 'linked application'

'The insolvency act 1986 part VIII'

Does mean anything! My head is mashed and my eyes ache!!!!!

[Foggy]

Basically the two IVA's are linked together ( no such thing as a joint or shared IVA).

Thing is some IP's allow you £5,000 each, so £10,000 between you ( which is as it should be ) but some will only allow £5000 total on linked IVA's !

What this means is that if you can get the equity below £5000 or £10000 there will be no extension and no equity release.