Hi
Can some please explain the 85% LTV equity release in my final 6 months. Im currently coming into to last 6 months of a 6 year IVA and im expecting my letter regarding equity release.
My property is worth £150,000 and my intereset only mortgage is for £139,000.
Is anyone able to workout if I will need to release any equity or complete an extra year?
It does state in my agreement something regarding the 85% LTV clause.
There are different scenarios linked to different companies.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Most companies work it out as, in your case: Value = £150,000 x 85% = £127,500 less your loan would put you in negative equity, no remortgage, no extension.
One in particular would say £150,000 less £139,000 = £11,000 x 85% = £9350 equity.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It does depend on the wording and the IPs interpretation of this. Some IVAs do mention a remortgage at 85% loan to value but an extension if 85% of 'your interest' is more than £5,000.
Hi, Sorry about the delay in reply.
I have to get two house valuations firstly, then The exact wording says:
An acceptable quotation is one of which provides for a Remortgage at a maximum of 85% LTV of the property less the existing borrowings, but subject to affordability criteria as detailed below. The sums raised may be lower than the LTV less secured sume if the debtor can demonstrate that the mortgage will result in funds being introduced into the agreement which equate with wither 100% of the debtors share of equity or payment in full to creditors. The amount to be introduced will not exceed 100% of the debtors share of equity.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Andy.75
Hi, Sorry about the delay in reply.
I have to get two house valuations firstly, then The exact wording says:
An acceptable quotation is one of which provides for a Remortgage at a maximum of 85% LTV ( which is £150,000 x 85%, so £127,500 ) of the property less the existing borrowings ( which are £139,000 ), but subject to affordability criteria as detailed below. The sums raised may be lower than the LTV less secured sume if the debtor can demonstrate that the mortgage will result in funds being introduced into the agreement which equate with wither 100% of the debtors share of equity or payment in full to creditors. The amount to be introduced will not exceed 100% of the debtors share of equity.
Hope this helps??
By there own wording I would say that you are in negative equity.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You are over 85% loan to value so the IVA may well cease. Hopefully that is the case and there is nothing else in the proposal and Chairman's Report which would throw a spanner in the works.
Oh that sounds promising then.
May I just ask one more question???
My creditors meeting was 26th March 2010, and Baines + Ernst took two monthly payments before this. One on 25th Feb and one on 25th of March. Are these classed as part of the 72 monthly payments agreed?
I can trace these payments on my online banking if I need to for evidence?
It depends upon what was agreed at the time -- back along some firms used to take fees up front, outside of the agreed term payments. You will need to clarify with your IP. Do you have a copy of the accounts at your first review ? The payments into the IVA estate should be detailed in the report to creditors at that time.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
My gut feeling is that these payments were an up front fee and will not form part of your IVA payments. B&E did charge such a fee and your paperwork from the time should confirm this.
