good morning, i am now in month 51 of iva - having been advised in the original documentation to obtain a valuation on my property and attempt to release equity up to 85 % ltv sometime after year 4 i am now looking into this. my question is - if i can release equity up to 85 % ltv this will be approx £2000 - if i cannot release equity i will be obliged to continue 12 months payment . i am currently paying £375 per month = 4500 soo i actually would rather release equity - IF and i know this is a big IF i can will my iva company have to honour this since it is less than the extra 12 months ?? or can they force me into 12 extra months since this will yeild more to iva - thank you
I had a similar clause which said about the 85% Ltv but also regarding 5000 equity. I got 3 valuations from estate agents and all came back with 5000 or less equity so didnt have to pay another year or release any equity. Also to note, some estate agents wanted to charge a fee of 75 quid for a valuation so i told them i was looking at moving straight after Iva and they were more than happy to do it for free. Ring around though because some will and some wont
yes i thought about trying to do that - i was just wondering that if i could release up to £2000 is it possible i could be forced to do the extra year in lieu of equity anyway - my feeling is iva would have to accept the lower amount if able to release this as the extra year is only if equity cant be released but we will see
If you have the standard clauses regarding equity release you only need attempt release if the available equity is more than £5000. If less than £5000 they forget about the property and equity altogether.
If more than £5000 you have to attempt to release it -- as things currently stand you will fail and they will extend the IVA by 12 months. If less than 12 payments are needed to hit the equity figure the IVA will stop at that point --- the object of the 12 months is not to increase the payout over and above the equity amount -- indeed, in the majority of cases it is far less than the equity and the creditors take a hit.
Check your paperwork carefully to see exactly what is required and then ensure that your IP sticks to the agreement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014