Equity Release Calculation. Can anyone explain ?

[Sarah.90]

Equity Release Calculation.
I am with GT and in month 57 I have been pestering them re the equity release and they said I could get a professional valuation & they would use that , the valuation was £68-72,000 do to the condition of the house. The valuer said if the property was in good condition the valuation would be £80,000. I emailed and posted the valuation to them.
Well GT have used Zoopla valuation (grr) , I have telephoned & they said I needed to send it to the progressions team not the customer service team, but they would pass it to them for re calculation ( I have also emailed it to the progressions team ( just to be sure they get it) So fingers crossed they us it.
But my question is how with a Zoopla valuation of £88934 and mortgage redemption of £74000 do the work out my equity is £5,024.84 (yup not even £25 over the £5000 clause ) , it is a jointly owned property so my husbands share needs to come off also.
Can anyone explain ( should they insist on using the Zoopla valuation)

[kallis3]

Hi and welcome,

I would go back to them and insist that they take the professional valuation. Zoopla are well known for over valuing property as they never actually look inside!!

I hope you get this going in your favour. Let us know how you get on.

[simon1883]

It should be the professional valuation.
I am in the same boat currently. Ive been advied it's something like this.

(Property Value x 85%) - partners share = available equity.

So you would be:
(88934 x 85%)- Mort (divide by 2) which is

£75594 - £74000 = (£1594 / 2) = £797

That is your equity. Below 5k generally means they dont bother.

I think even with the higher valuation your are safe. No extension will be required either.

I might be wrong but, it the same arguement that I am having now.

Good luck

[Sarah.91]

(I couldn't log in so I have registered with a slightly different username).

Thanks Simon ,

They are telling me that (using the Zoopla 88K valuation & 74k redemption, I have equity of 5,024) I can't understand how they come to this calculation.

They did tell me (via email so its in writing) that if I got a valuation they would use it , so I will insist that they use that.

Fingers crossed!

[simon1883]

I think you need them to show you how the calculation is being done.

The 85% needs to be before the the mortgage balance is subtracted, not afterwards.

[Sarah.91]

Thank you,

I am still hoping that they use my valuation (especially as I paid for it) or even an average of mine & Zoopla (as currently the equity isn't even 25 pounds over the 5k).

Should they still disagree I will ask them to demonstrate their calculations ,
cheers

[Michael Peoples]

Your valuation should mean that there is no valuation but even with Zoopla there is not enough for an extension as it is a jointly owned property. Hopefully GT will confirm this and your IVA can close down.