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Broke of London
Forum Expert
46 month\s down 14 month\s to go.
United Kingdom
7772 Posts |
 Posted - 25 February 2012 : 22:52:36
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| As Jan said, your own firm are the best ones to advise you if you are having problems. If you aren't having problems, just forget everything they said. They're no more trustworthy than the people who tell you you've won the Nigerian lottery! |
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Daniel Griffiths
IVA Campaigner
219 Posts |
Posted - 25 February 2012 : 23:48:23
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| Please have I missed something here, you are paying around £500 per month I guess for 60 months including IP fees around 30K, 36K if you go 72 months with 40K of unsecured debts however 75K equity in property, what does your remortgage clause say at the end of year 4, have you estimated how much you may be paying back? |
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MelanieGiles
IP
43635 Posts |
Posted - 26 February 2012 : 00:00:50
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| Probably only one extra year with the current availability of remortgaging in the current economic climate. |
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
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Broke of London
Forum Expert
46 month\s down 14 month\s to go.
United Kingdom
7772 Posts |
Posted - 26 February 2012 : 00:24:04
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| Hi Daniel, no-one would ever pay more than their debt plus fees (and occasionally a small amount of interest). So James would only have to release a small amount of equity and as that's unlikely, as Mel said, an extra year of payments. The IP wouldn't arbitrarily take an excessive amount of equity. |
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James.ri
New Member
17 Posts |
Posted - 26 February 2012 : 07:44:04
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| Thanks for the comments, I understand the cold approach - thanks for this. But, excuse my ignorance, I am confused about my equity release. The resale value of my home is 275k, however, the rebuild value as documented within the IVA is 166k, which doesn't give me any equity. I am currently paying 60 mths @ £500, am I likely to have to go into a 6th year???? |
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kallis3
Moderator
United Kingdom
66038 Posts |
Posted - 26 February 2012 : 08:11:04
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There is a very good chance that you will have to as I believe they will go by the resale value, not the rebuild value.
The vast majority of us now have to go an extra year if we have our house. |
http://kallis3.blogs.iva.co.uk/
The friend in my adversity I shall always cherish most. I can better trust those who helped to relieve the gloom of my dark hours than those who are so ready to enjoy with me the sunshine of my prosperity. – Ulysses S. Grant
An iva.co.uk mentor,is someone sharing from their experiences of dealing with debt
Jan
xx
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Daniel Griffiths
IVA Campaigner
219 Posts |
Posted - 26 February 2012 : 08:41:18
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Hi James
Never heard of a rebuild value of an assett in an IVA only in insurance premiums, in your IVA does it state the value of your home is £275k or £166K this is very important, and also is the equity shared or just in your name only, |
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MelanieGiles
IP
43635 Posts |
Posted - 27 February 2012 : 00:45:54
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| You should get a forced sale valuation to use as the basis for the equity release calculation, not a rebuild cost. |
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
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James.ri
New Member
17 Posts |
Posted - 27 February 2012 : 13:01:17
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Still very confused.
To summarise;
2 yrs into an IVA, with no real hiccups. 60mths @£500 per month on an original 40k debt.
Initially, with DFH on a DMP, after 3 mths changed to an IVA.
Recent cold call from a different finance company, stating because of my equity, the IVA wasn't the best option.
I have no knowledge of the Yr 4 equity release procedure.
My IVA states the online value of my home is £166k. However, the actual resale value is £275k???
Really, really confused.
I understand the benefits of an IVA. But, has mine been hashed together. The cold call and all your experienced responses have left me very anxious about my position.
Many thanks |
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MerlinL14
IVA Journeyman
41 month\s down 19 month\s to go.
561 Posts |
Posted - 27 February 2012 : 13:14:44
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| You need to sit down with your IVA team to put any concerns to them directly, your IVA is as individual to you as mine is to me. The advise you are getting off the forum is general at best and even if well meaning may not actually apply or help you. The only 'eggs is eggs' you have stated is that all this worry started when some cold calling firm planted the seeds of doubt to you. If you discount this spanner in the works is the IVA actually working? |
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Daniel Griffiths
IVA Campaigner
219 Posts |
Posted - 27 February 2012 : 17:12:43
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James
You have two immediate areas of concern here, you dont seem to be aware of your year 4 equity release clause perhaps you dont have one, you need to read your proposal very carefully,
The second point is the value of your home which on 166k and 275k are two very different valuations, my questions are as follows
1)Did you supply a written valuation of your home to the nominee, because your creditors have been told your home is worth 166k and based on that valuation, approved your IVA because they realise they are to get something quite less than 100p in the pound if they make you bankrupt, However if the true valuation of your property is £275k with 75k in equity versus 40k of debt then the creditors have been given false information,which is an offence. So to summarise who provided the valuation you or the nominee |
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James.ri
New Member
17 Posts |
Posted - 27 February 2012 : 17:47:02
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Thanks for the clarity.
I have checked my IVA and the 4 yrs clause is in there.
The value of my home was provided by the IP utilising an online valuation tool, which is documented within the original proposal. They provided the value not me!!!
That's why I am concerned, because until now I didn't realise the importance of it.
Thanks
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Daniel Griffiths
IVA Campaigner
219 Posts |
Posted - 27 February 2012 : 17:58:14
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James
Is there a Co Owner is the 75k equity yours? I presume you have a 200k in borrowings |
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James.ri
New Member
17 Posts |
Posted - 27 February 2012 : 18:08:39
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The IVA is in both my wife's and my name, as is our home.
The only issue perhaps or reason (after trawling through the documentation) is the loan to value of the mortgage is above 75%, so no remortgage or equity release is possible - does this sound feasible?
The company were fully aware of the value of my house too, as they had my mortgage statements etc. |
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MelanieGiles
IP
43635 Posts |
Posted - 28 February 2012 : 00:35:33
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This all seems incredibly odd - are you really saying that your IP did not discuss the implications of the equity release provision with you - and relied on an on-line valuation rather than getting you to source one from a loval agent?
If so, then I would be very concerned about the level of advice initially provided to you - however you did sign the proposal documents, presumably after being advised to read through them carefully? That said, the IP has a duty to ensure that their clients are fully aware of the provisions, and document that their clients have confirmed their understanding.
There is a considerable disparity in the figures reported here - but I am assuming that the property is currently worth £275k with a mortgage of around £200k outstanding and that you only have to raise equity at a loan to value of 75%? Is my understanding correct? |
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
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James.ri
New Member
17 Posts |
Posted - 28 February 2012 : 09:15:27
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Melanie,
You are correct re para 1. There was never a discussion about equity release and no real emphasis placed on the yr 4 release. However, they were acutely aware of my mortgage level at the time, as it's documented within the paperwork.
Plus, you are right, I did read through and jointly sign with my wife. But, it's only now with the help of this forum, that I really understand the process.
My home is worth 275k. My mortgage is for approx. 200k.
What should have happened?
Will any equity release be possible in yr 4, due to the high value of my outstanding mortgage, if not I assume the IVA will extend into yr 6??
Still really concerned with the initial process, was an IVA right for me? |
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MelanieGiles
IP
43635 Posts |
Posted - 28 February 2012 : 13:24:44
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If the loan to value stipulation is 75%, then there may be little if any additional monies for you to actually raise - but I would get definite confirmation from your IP as to what you are required to do, and run this by an insolvency experienced lawyer if you are still unsure or feel that you were co-erced into signing something that you really did not understand.
I would doubt very much whether you will find anyone prepared to re-mortgage you - but that is a good thing as it is pretty unfair to expect someone to take on a larger financial commitment at the end of a lengthy repayment period in any case - so at worst cases hopefully the additional years' payments is all you may have to make. |
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
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Andy Davie
Administrator
13618 Posts |
Posted - 28 February 2012 : 19:50:02
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Hi
I think it is very likely that your IVA will extend by one year instead of you releasing equity, it is near impossible to obtain a mortgage whilst in an IVA.
What does your chairmans report state regarding being unable to release equity ?
Regards |
Andy Davie, IVA.co.uk Site Manager and Spokesperson.
"2012 Debt Counsellor of the year" Credit Today Awards. BTEC Advanced Certificate in Debt Resolution
If you need any help or advice about any debt solution please contact me via my website at www.andydavie.com or via the expert section.
Author of "Real life IVA stories" |
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James.ri
New Member
17 Posts |
Posted - 29 February 2012 : 07:05:01
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| It doesn't mentioned "unreleaseable" equity. It simply comments that my mortgage hasn't been included thus far, but in year 4 will be reviewed whereby my home will be commercially valued. |
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Daniel Griffiths
IVA Campaigner
219 Posts |
Posted - 29 February 2012 : 09:35:20
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James
Your home should have been commercialy valued at the inception, if your valuation is anywhere near correct the IVA would have been rejected because you were both solvent but struggling to meet payments. It is my opinion that you are going to end up paying more back to your creditors than if you had gone down the normal DMP route which was the start of this thread.
The nominee to whom owes you and the creditors a duty of care should explain to you why your assetts were devalued to the tune in excess of £100000,which would have been required in order to get the IVA agreed. The problem is James the nominee will state they relied on information supplied to them by yourself, however if as you state you did not furnish the nominee proper valuations of your home then he/she needs to explain why they were not more thorough in obtaining accurate valuations of your assetts, as I said earlier if they had then they would not have had your business,
James is is a very serious offence to give false information for the purpose of obtaining approval from creditors to approving an IVA, I am not for one minute stating you have given that information, but that is whats in your proposal. |
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Topic |
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40k unsecured debt. 75k equity. Was IVA the best option ?
