Does this make sense to anyone? Our valuation is £ 115000 the mortgage redemption figure is £104297 then had this from ip
The 85% applies when considering a re-mortgage, as there is no equity at 85% then we would not ask you to attempt a re-mortgage.
However, as there is equity in the property an extension is required. Are you happy that the valuation is accurate?
Hi I think I understand what you are asking...
A lot of IVAs have a clause that at the end you either a) remortgage the property and pay a share into the IVA or if that is not possible then b) continue paying contributions for 12 months in lieu of the lump sum remortgage monies.
What I think you are being told is that there is less than 85% LTV equity in the property so you won't be able to remortgage in which case you will still need to continue paying into your IVA so creditors receive something for the equity. I.e if they cant get a contribution from your equity one way they will get it another. Hope that makes sense.
just tried to edit my post, but deleted it by mistake! Ours was all figured out on the 85% LTV. these are our figures copied from an email sent to me by our case worker, on how they come to the equity figure:
Estate agent valuation £62,500
Adaptive valuation(on behalf of IVA) £66,450
Average £64,475
85%LTV £54,803.75
Mortgage outstanding: £51,351
Equity £3452.75
so although we have equity we don't have enough to force another year.
getting there ....
Got there!!
IVA started 27/10/2010
final payment 27/10/2015
CC received 6/5/16
Off the register 5/8/16
It does depend on the actual wording and any modifications. Some proposals/mods say 85% of the debtor's interest to be introduced and the olkd protocol cases say different things. By all means query this with your IP as they should be able to explain in detail what is owed and why.
As Michael says, wording does differ, but, if calculated in the accepted "normal" way, the equity here is de minimis and the property should be excluded, no extension.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi newtoallthis, I'm in exactly the same position as you. House valuation £125,000 so 85% LTV = £106,250 and mortgage of £108,500 so negative equity BUT at 100 LTV i.e. £125,000 - £108,500 = £16,500 equity and therefore I may be asked to extend in lieu of this.
My case is currently being looked at by IP so will let you know what they say.
It's worth having a good read of your chairman's report and original proposal.
- Is your IVA Protocol Compliant https://www.gov.uk/government/publicati ... a-protocol
(9.3 If the amount of the debtor’s net worth net of remortgage costs in the home at the review date is under £5k, it is considered de minimis, and does not have to be released, and there would be no adjustment to the IVA term.)
Newtoallthis and Chrisdc99
Based on the maximum remortgage being 85 % I would suggest that you both owe nothing further but obviously depends on your own proposals