3.9) if the amount of equity available in the home at month 54 is under £5000, it is deminimise and does not need to be released & there will be no adjustment to the IVA term.
It's £5000 at 85% LTV. They wouldn't have added the part I have highlighted if it was 5k total equity as if it was 100% you couldn't release it anyway.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Leese
3.9) if the amount of equity available in the home at month 54 is under £5000, it is deminimise and does not need to be released & there will be no adjustment to the IVA term.
It's £5000 at 85% LTV. They wouldn't have added the part I have highlighted if it was 5k total equity as if it was 100% you couldn't release it anyway.
That's what I read from this anyway...
Hubby just called for advice & was told...
Called Hb & I was given this example: an outstanding mortgage of £160 000 and a value of £163000 gives an equity of £3000, there is no amendment. The same mortgage on a house worth £166000 would give a £6000 equity. This is below 15% so can't be released hence they ask for an amendment to the term as there is equity just not enough to remortgage.
I have asked for that in writing and said when would an equity of less then £5000 be over 15% but he didn't have an answer to that.
So it seems we only have to have a £5000 equity & we will be extended
Got a letter this morning saying another variation meeting week Tuesday, all creditors made clear what the vote is for so hopefully go through ok......let you all..... know another week of wating
That is indeed correct - but AlmostThere should seek advice directly from their own IP if they are in any way concerned about how these clauses will effect them.
Whilst these clauses may be somewhat overwhelming when reading through them, when they are illustrated by using actual figures they are a lot simpler to understand.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGiles
That is indeed correct - but AlmostThere should seek advice directly from their own IP if they are in any way concerned about how these clauses will effect them.
Whilst these clauses may be somewhat overwhelming when reading through them, when they are illustrated by using actual figures they are a lot simpler to understand.
Hi Melanie,
Are we being told correctly then? That if we have £5k equity regardless of LTV we will need to be extended?
Karen
Hi Karen, the best thing is forget the 5k the 2010 protocol clearly states that the debtor to be left with 15% equity...end off... no matter what some ip says, the 5k is meant to be a cushion so even after the 85%ltv there was say 3k releasable equity, but it wouldn't be worth doing as the ip would get it as fees not the creditor, so hence 5k came into play so that the creditor would have something after a re mortgage was done or what was the point.
85% ltv to realease over 5k in money or else forget it, plus you wont get a 85% mortgage anyway.........so extend 12 months upto the value of the releasable equity.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by villapb
Hi Karen, the best thing is forget the 5k the 2010 protocol clearly states that the debtor to be left with 15% equity...end off... no matter what some ip says, the 5k is meant to be a cushion so even after the 85%ltv there was say 3k releasable equity, but it wouldn't be worth doing as the ip would get it as fees not the creditor, so hence 5k came into play so that the creditor would have something after a re mortgage was done or what was the point.
85% ltv to realease over 5k in money or else forget it, plus you wont get a 85% mortgage anyway.........so extend 12 months upto the value of the releasable equity.
Hi Villapb,
See this is where I am now confused again.
We called again today & asked for confirmation on what the clauses stated.
We were told regardless of LTV if we had £5k or more equity we would be extended by another year. (Because we wouldn't be able to remortgage. But surely anyone with an IVA will struggle to remortgage regardless of the equity??)
Our house is going to be borderline looking at surrounding houses hence why we are trying to gather the right information.
Karen
Hi Karen so what u ip is asking is 100% ltv, which clearly is unfair to the debtor and not a fresh start, total joke tbh, our situation is looking ok now think we may have ours closed down next tuesday18th fingers crrossrd
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by villapb
Hi Karen so what u ip is asking is 100% ltv, which clearly is unfair to the debtor and not a fresh start, total joke tbh, our situation is looking ok now think we may have ours closed down next tuesday18th fingers crrossrd
Karen don't give in, i have fought for six months, tell them u not agreeing to extension and ask them who is requlator, also you want a face to face with supervisor not the admin, say u want to go bankrupt soon change tune when no equity it will cost them all their fees to date,
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by villapb
Karen don't give in, i have fought for six months, tell them u not agreeing to extension and ask them who is requlator, also you want a face to face with supervisor not the admin, say u want to go bankrupt soon change tune when no equity it will cost them all their fees to date,
They know we can't go bankrupt due to hubby's job so I can't threaten them with that!
We signed the forms so surely we can't now argue them. We should've questioned it before signing.
Guess time will tell after valuation on Wednesday, but we seem to be borderline.
Karen.
The spirit of the IVA protocol means that if the sum to be raised from the potential re-mortgage - subject to you not borrowing more than 85% of the value of your property, then it is deminimis and there is then no need to raise any money or extend the term of the IVA.
Please get your IP to confirm that this is how they interpret the ruling. If they do not, then you may need to take this matter further.
