Hi all,
I hope someone may be able to help. Paperwork sent last Oct received letter Feb 15 saying £29,940.07 equity, questioned this as my calculation said no equity, Value £225,000, Mortgage Redemp £181,901.39 Equity £9348.61 joint IVA so below £5000 de minimis each.
Today got email with the following calculations
Value £225,000
Mortgage Redemp £181,901.39
3.5% selling fee £7875.00
Equity £35,223.61
50% each £17611.81
85% available equity £14,970.03.
Please can someone suggest what we can say to Gt, seems to me they are trying to get extra money which isnt there.
Any help greatly received.
Some IP's do seem to try to work out equity this way, which, in my opinion, is wrong, but will depend upon the exact wording in your proposal ( even a comma, or lack thereof, can make a difference --- which is why most legal documents lack punctuation )
We have had instances where the method GT are using has been questioned and the firm has backed down -- this is often due to an inexperienced member of staff using the wrong method.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If you are sure, according to the wording in your proposal, that your method ( which is what I would use) is correct then write to GT telling them so and giving your calculations. If they refuse to budge you can make a formal complaint and / or take this up with their regulatory body.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
This seems wrong to me so do challenge it, I think it should relate to 85% loan to value and not 85% of any equity so do check the exact wording on your chairmans report following your initial creditors meeting
Hi Andy and Foggy,
Thanks for your replies wording says
"Re mortgage at a maximum of 85% loan to value of the property less the existing secured borrowings(LTV less secured sums)but subject to affordability criteria.
In my outcome statement I have shown estimated which I consider will be paid into th IVA after month 54.
If no amount is shown (there is no amount shown) either 85% of the current value of the house is less than the current outstanding mortgage or my share of equity in the house is less than £5,000 (gross).
In the event that the valuation after month 54 demostrates that my share of equity is less than £5,000 (gross), the property is excluded from the arrangement. This does not affect any other terms of the arrangement and the arrangement will continue to 60 months with contributions being paid as described.
Sorry for the rather long post but wanted you to see all info so you can advice what is best to do based on this.
Thanks in advance
They are limiting the remortgage ceiling to 85% LTV. So £225k market value gives an 85% LTV of £191,250 ... £9349 equity, of which your share is half ... less than de minimis. No extension.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Andy and Foggy,
I will email them tonight.
Am I ok saying I feel they have made an error and give them the calculations I believe it should be.
Just worried it may go against us but then again why should we suffer for their poor calculations.
As long as you are polite they can hold nothing against you -- you are an adult and are merely pointing out that you do not agree with the way they have interpreted the equity release provisions.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Great Foggy, Thanks
have drafted a very polite email saying we feel their calculations are incorrect based on our agreement and could they please review based on this.
Will keep our fingers crossed.
