Another equity release question I'm afraid!
I've had my valuations and oustanding debts stuff done. I had 2 valuations done £135k + £145K. My outstanding debt is £120k.
My proposal says “If the valuation shows that 85% of my interest in the property (after deducting mortgage and loans) is less than £5000 then I need contribute no more”
I always took this to mean 85% of the valuation i.e £145k = £123,250 so I owe less than £5k. Have I understood this right or does the “85% of my interest" relate to 85% of the equity?
Thanks in advance for any advice.
Last edited by marathonman on Thu Mar 19, 2015 6:43 pm, edited 1 time in total.
That is what I feared. For some reason I always thought of it as 85% LTV but now rereading it all having had the email about the equity I fear the worst! I'm a CreditFix transfer from PJG.
The annoying thing is with release of equity being limited to an 85% remortgage I'm wishing I hadn't sent the £145k valuation! If I can persuade them to use an average of the 2 valuations i.e £140k the remortgage figure would be £119k and I owe £120k so in theory should not need to go down that road ...
Good find Foggy
I shall compose an email with a link to that and try to convince them to use an average home valuation!
After nearly 5 years I'd psyched myself up to finishing and had finally plucked up the courage to start a relationship again ... I could do without the 12 month extention!
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by marathonman
Another equity release question I'm afraid!
I've had my valuations and oustanding debts stuff done. I had 2 valuations done £135k + £145K. My outstanding debt is £120k.
My proposal says “If the valuation shows that 85% of my interest in the property (after deducting mortgage and loans) is less than £5000 then I need contribute no more”
I always took this to mean 85% of the valuation i.e £145k = £123,250 so I owe less than £5k. Have I understood this right or does the “85% of my interest" relate to 85% of the equity?
Thanks in advance for any advice.
Hi I am also an ex PJG my proposal says the same as yours but underneath says * The Remortgage amount will be a maximum of 85% of my loan to Value LTV
Inter-locking IVA approved 25th Feb 2013 - F&F offer Accepted 06th July 2017 - Completion Certificate received 20th July 2017
Looking at the examples in my paperwork from PJG based on you figures
property Value = £145,000
85% of share in the property value = £123,250
share of the mortgage = £120,000
Equity = £3250
Inter-locking IVA approved 25th Feb 2013 - F&F offer Accepted 06th July 2017 - Completion Certificate received 20th July 2017
Hi Harrysmum
I have the same thing about max LTV on mine so if I can persuade them to use an average valuation of £140k then the most I could remortgage for is £119k which as I owe just over £120k rules it out anyway!
I'd worked out my figures the same as you and had always assumed that the 'my interest in the property' related to whether the property was in my name or in joint names! I can't find any examples in my paperwork though have somemore to wade through! My IP is saying I have £25k equity which is over the £5k 'allowance'
Desperately trying to avoid an extension having got this far! Will email them my opinion and then chat to them to argue my point!!
if you add me as a friend I can email you the example copies if this helps you this has confused me a lot where it says 85% of my interest in the property but have had a good look at the examples and my calculation I think is correct
Inter-locking IVA approved 25th Feb 2013 - F&F offer Accepted 06th July 2017 - Completion Certificate received 20th July 2017
I'm probably being dense but haven't yet worked out how to add you as a friend! However I have just come across an example from the original paperwork and it's under the heading "Form RX1 - Treatment of your home" and this seems to back up our version.
Will do ... it's always nice to hear other people's opinion. I'm hoping I only have 2 months left to pay and not 14 and will definitely be fighting my corner! Will update you when I know more.
Thanks for your replies
Hi, I'm an ex PJG client too and the proposal says exactly the same as yours. However, on the next page it clearly states how the equity is worked out, with the 85% being deducted as in 85% LTV, so if Creditfix try to work it out any other way I will refer to the breakdown. Thanks for highlighting this and please let us know how you get on.
