Hi there, I'm in the process of negotiating an IVA proposal with the help of Aperture. I am claiming that because my husband has paid £79,000 deposit on the house, he is entitled to it and the rest of the equity is split 50/50. One of the creditors is insistent that he relinquishes this and only then would they consider the proposal. I am at a loss as to why they would insist on this as it would not make any difference to the amount I can afford to pay them. Is is to do with the potential re-mortgage after 5 years? By the way, still can't understand that clause! ) Thank you in advance
Yes, it is to do with the equity release towards the end. Him relinquishing the deposit increases your share and therefore the amount you could be required to release to them.
How is the house held ? Do you hold it in equal shares ( as is the usual way for couples -- joint tenants)? Or, do you hold it is specified shares to address the deposit situation (tenants in common) ?
If joint tenants, in law, there is no claim for extra equity due to the deposit)
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thank you! What are the chances I'll have to release that equity through remortgage? I.e.should i go with what they are asking for for the sake of the proposal being accepted as they have the winning share of the votes? Thankyou!
At the moment the chances of a remortgage are practically zero -- but the mortgage market is always changing and who knows what the situation will be in a few years.
Aperture also have a strange ( and in my opinion, incorrect and unfair) way of calculating the equity when the time comes. Finally -- check that they do not include the possibility of releasing equity via secured lending, as an alternative to a remortgage.
I would advise chatting with a few other firms as Aperture seem to be deciding what the creditors will want without giving you the chance of a better deal.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks! Do you mean chatting to others when the time comes, i.e. in 5 years? As at the moment I'm too far along with my proposal to switch iva providers.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy
No -- I mean discussing setting up the IVA with others. You are not committed to continuing with Aperture until the creditors meeting takes place.
It did take place last week. Rejected by the majority creditor who are insisting that my husband takes out his claim for the initial deposit. I feel stuck between a rock and a hard place - bankruptcy if I insist on the claim remaining in the proposal and the possibility that they can demand that I remortgage and release the equity in 5 years time. Aperture seem to be helpful, but of course, they are interested in the proposal going forward. Nothing seems to be certain at this stage
Aperture use the IVA Protocols -- have a chat with a firm that do not ( McCambridge Duffy use R3 terms and conditions ). They treat equity differently and more transparently. Do not go along with terms you are not happy with just because Aperture have put in a lot of work -- it is a risk they take --- the creditors refused the proposal, not you.
Last edited by Foggy on Wed Sep 21, 2016 9:39 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Your argument is valid and if you have evidence of the deposit then stick to your guns. Seriously consider bankruptcy rather than force your husband to give up something that belongs to him. Your husband should consider legal advice to protect his position.
