So working out on 85% of the valuation figure the IVA wouldn't continue for an additional year as we are below the £5K equity threshold as listed in our T&C's ?
To be honest the valuation I got is a little on the low side so I know what to shoot for when requesting valuations [:D]
I have no idea on this - maths was never my strong point!!
You might want to get a normal valuation from a local agent.
Beware of your IP using online valuations as they can sometimes be too high.
Hopefully your figures will be ok.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Your method is the one many IP's use, and have to if that is the method specified in your paperwork (there is often an example annexed to the proposal).
However, some arrangements have conflicting methods and a few IP's try to interpret it as 85% of the equity, rather than based on 85% LTV. A few of these have been challenged and have backed down, where the wording is open to question.
Aperture, for instance, try it this way:
Valuation £311,300 less mortgage and secured lending = £45,719 equity 85% of which is £38,861.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
4.3 In month 54 of my arrangement, a valuation will be carried out on the property and I will provide the Supervisor with an up to date redemption statement from the mortgagee(s).
4.4 If that valuation shows that 85% of my interest in the value of the property (after deducting the amount of the loans referred to above) is less than £5,000 then I need contribute no more to the arrangement in respect of the property.
4.5 If that valuation shows that 85% of my interest in the value of the property (after deducting the amount of the loans referred to above is £5,000 or more, I will seek to re-mortgage my share of the property subject to the following conditions:
Sorry - I read that as the method that gives an equity figure. The clause states "85% of my interest in the value of the property (after deducting the amount of the loans referred to above)" Your "interest in the value of the property" is the equity. They are referring to 85% of the equity, not 85% LTV.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Foggy - I've just realised that the wording is written as if I've written it see the opening paragraph:
4.1 As can be seen in Appendix A, the property -----------------, is jointly owned with my wife. I estimate the current value of this property to be ------------ which is based on a valuation by a local estate agent. The mortgage is held by -------------- in the sum of ---£******* There is a secured loan attached to the property with ******** Finance for £**********
This is how it reads all the way through.
I had the same clause as you but in addition I had an illustration within the proposal called either annex 6 or 7 which calculated the available equity on a ltv method. I argued the case with my IP saying that the proposal was written in an ambiguous manner and he agreed with me. No extension and IVA concluded after 60 months. It's got to be worth a try. Good luck
