Reply from IVA company about equity doesn't make sense to me.

[mac69]

Hi
I have been asked to look into a remortgage for the final year of IVA and when i tried to get valuations no one would come out to value as i told them what it was for.
Anyway 2 did give me phone valuations which i passed on to me IVA supervisor. The values were &61,000 and £65,000 and my mortgage owed id £60,000.
I sent this information off and have had a letter back stating that the have worked out that 85% of the interest in the property is £6,500 and i can either pay that or pay my IVA for a further 2 months. This does not make sense to me and just wondered if anyone else could make sense of it ?
Thanks

[Michael Peoples]

I am not sure how they calculate this either so you should ask for their calculations. Some old modifications did ask for 85% of the debtor's interest in the property so that may be correct but where they get their figure of £6500 from is confusing.

[Foggy]

Again, I cannot see where they have plucked this figure from. Taking the higher valuation only gives £4250 --- take off fees and you would be looking at around £3000. And that is working it out the "wrong" way (which does depend upon your wording).

Do you have the £5000 de minimis clause ? By either calculation method you are well under that.

[Adam Davies]

Hi

Have they used their own online valuation perhaps ?

Ask them for a clear breakdown of how they have arrived at the figure

Regards

[mac69]

Hi everyone,
Following on from topic below regarding the remortgage I was asked to look into and the valuation of my house the IVA company have now had an independent firm come and value the property at £82500 which is £6000-£7000 more than any other house has been sold for in the area . I have disagreed with this as although they have said its ok to pay for another year , if I wanted to pay it off or could get someone ie family to it would now cost £12800. The told me they needed an answer in 14 days but I do not agree with this valuation at all and find it very unfair. Does anyone know if there is anything that can be done.
Thanks

[Foggy]

Hi -- all depends upon the actual figures involved and the clauses in your own agreement.

If your valuation makes equity over £5k it is irrelevant, as the 12 month extension kicks in anyway. If you wish to make a full and final settlement you do not need to offer the equity amount, but the amount you would pay over the 12 months ( 12 times your last monthly repayment amount).

If your valuation brings you under £5k and you have the £5k de minimis clause then no extension should apply. In which case it is worth paying a £100 or so for a surveyor to value for you and challenging them.

[Lisa Thomas]

I would suggest you get your own formal valuation so that you can (hopefully) challenge theirs.

[Helen.k]

we paid £60 for a local estate agents valuation, this has saved us an extra years payments so money well spent. We were honest with the agent as to why we needed the valuation and as long as we paid up they were happy to oblige!