Hi everyone, my hubby and I have been in IVA since Sep 2006. We are just waiting on GT deciding if there is any equity in our home and therefore whether we will need to continue for another 12 months. I understand the whole equity release thing, i.e. for us i believe if there is no equity we finish in September, but if there is equity and we are unable to release we carry on.
I consider myself quite bright but cannot get my head around the figures!
We have been valued at between 85 and 95k.
We only own 65% of home as shared ownership and we still owe around 49000 on mortgage.
We also have a charge on home for 7236 in respect of improvement work done in conjunction with the council.
Can anyone give me a rough idea of what I am looking at? I don't think we have any equity, but just not sure!!!
You don't have any equity and I can't see why it takes GT so long to work this one out!!
You have two months to go so with any luck they will pull their finger out and give you a decision, it's not exactly rocket science. If it's anything other than you finishing in september then request a detailed explanation as to why.
Do you have a minimum dividend clause? That may mean extending but hopefully you will complete this year.
Actually it could be more clear cut than that, using Kazza's method and assuming the valuation you gave was the value for a willing sale to a willing vendor (100%). The valuation for equity purposes is, I believe, based on a forced sale basis, which would be expected to raise around 85% of full market value. So (taking the mid 100% value):
£90,000 x 85% = £76,500 Forced sale value .... your 65% share will be:
£76,500 x 65% = £49,725 ... less mortgage
£49,725 - £49,000 = £725 equity
Last edited by Foggy on Sun Jul 17, 2011 2:11 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
Hi I know in m proposal it states I would only have 85% LTV so if this was the same for you, that would only be 85% of your actual share, so the equity would most like be in the negative
kat
IVA accepted 6th May 2011, Full and Final accepted 17th April 2012.
Hi everyone......my wife and I have 'interlocking' IVA's (in our own names)....does this mean that we both 'keep' 15% of the equity OR is the 15% shared between both of us??...just being hopeful!!!!
Hi Bob --- the interlocking means both IVA's are run on the same figures, with one joint payment. The equity will be dealt with as a single property and the result applied to both IVA's as if they were one. So the equity will be calculated on 85% of FMV (not 30).
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 all, I was pretty sure there was no equity there but the longer you have to wait, the more you doubt your own calculations!! I think GT are really busy with all of their new business but us old clients still need their input.... If we are nearly there I just cannot believe it, the IVA has been with us longer than one of my children, so it's like part of the family now!
Morning Foggy - thanks for your reply. You have sent me searching for our original documentation which have no mention of 'interlocking' and are shown as not linked????...as far as I am concerned they are dependant upon each others income etc. They are both standard consumer IVA's and in each individual calculation show 85% 'current interest in property'........in addition we both pay separate amounts to our IVA company??
Ours aren't linked, we make seperate payments but they are dependent on both incomes.
We are both expected to release £14k each when it comes to remortgage time.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
bob.m wrote:
Morning Foggy - thanks for your reply. You have sent me searching for our original documentation which have no mention of 'interlocking' and are shown as not linked????...as far as I am concerned they are dependant upon each others income etc. They are both standard consumer IVA's and in each individual calculation show 85% 'current interest in property'........in addition we both pay separate amounts to our IVA company??
Ah right -- well, each stands on it's own merits. However the 15% isn't a disregard.
Assuming you each own half of the property, then you should ( I say should -- it's just my opinion) each be assessed for available equity on half of it's forced sale value. It's as broad as it's long, really, as you'll each be considered to owing half the mortgage.
Interesting question .. I hope an expert comes along and puts both of us out of our misery !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Well today we finally had a letter back from GT.... six weeks after sending in our valuation, etc.... Only to say that we apparently do have equity and must approach lenders now!!
My husband has phoned them and after a long conversation and being put on hold forever they said they need to look at it again as they may not have taken into account the fact we only own 65% of our home - what on earth have they been doing with all of our paperwork for the past six weeks??!
Anyway they should have phoned back by the end of the day but surprise surprise that didn't happen, so we will have to get back on it tomorrow..... really don't need this stress!
They should already have taken into account the amount of equity you own.
Regardless of that though, you are unlikely to be able to remortgage and GT will know this.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
