Hi, my IVA is due to end sept 2014,(well october due to payment break to buy household essentials) we are currently in year 5 as we had to take a 6 year IVA, we are now looking fro evaluations on the property, we also have an equity release too, How will the valuation and current equity affect it? we think there may be approx 10,000 left after a 90,000 valuation and mortgage is 68,000 and 12,000 for equity release held. Isnt there a certain percentage of the property that you can only remortgage for? Thanks in advance .
Hi cilla and welcome, you are normally expected to remortgage up to 85% of the equity you own, can you just clarify what your current outstanding mortgage is and what the valuation is for a forced sale?
Hi Iem, this forum is new to me lol! the mortgage is approx 68,300.00 balance, and we have a remortgage/equity release as well, this is approx 12,000.00 o/standing too, the only evaluation we have had is from an estate agent who came out and said £85,00- 90,000.00. zoopla also says £92,321.00, Is this what u mean? sorry really not sure, we've just been paying all this time and now the serious stuff starts!! Thanks
Do you mean the £12k is specifically stated you have to release in your iva proposal? Or does it ask you to get an up to date valuation?, I would get the estate agent to put the £85k in writing to you, the. 85% of that is £72,250, as your mortgage remaining is £68, 300 this is a difference of £4,050 that you would have to remortgage for, but if your proposal states they want £12k then you may possibly need a variation meeting to address this, speak to your IP
Hi lem, no the 12k is an existing secured loan sorry my mistake (thought it was equity release), my understanding then is that it all totals approx 80k, so there would be possibly 10k equity? which i'm hoping isn't enough. As they told us at the beginning if there was no equity then th IVA would run to the 6 years and thats it. confused lol!
If ou have a secured loan of £12k plus your mortgage of £68k that equals £80k, as your house is worth £85k you don't have any equity to release so your iva should end on time xx
The extension was done at the beginning of the iva, they were the terms proposed to us, so im hoping at the 6 years we will be done!! Thanks so much for your help, it is as i thought it would be, Thanks and hope all goes well with yours too xx
