font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by FoggyWe are with Harrington Brooks & seem to get different advice now we are nearing the end. I'm so confused with it all & don't know what I need to be saying to get the right result. Obviously if I'm due to pay another year I'll accept that, but don't want to be taken for a mug because I don't understand the terminology if that makes sense?
Hi Karen. We have just had a post regarding the IP calculating equity for the deminimis amount, where the IP insisted on using 100% LTV for deminimis. However, once the relevant protocol was pointed out to him, he agreed to use 85%.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Desperate BobI called them last week and was told if we have equity of £5k or more then we would be extended. No mention of the ltv, which is why I'm now confused with how it works.
Its very straight forward,
Get a valuation
If said valuation puts you in negative equity then the IVA will conclude and there will be no extension.
If said valuation says there is equity, but it is under £5000 of 85% LTV then your IVA will conclude after 5 years.
If said valuation says there is equity of £5000 or more of 85% LTV then you will have to try to re-mortgage, if you cannot re-mortgage you will extend the IVA by one year.
That seems what most IP's are working off, but as usual it is what is in your proposal.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Desperate BobHubby just called for advice & was told...
Its very straight forward,
Get a valuation
If said valuation puts you in negative equity then the IVA will conclude and there will be no extension.
If said valuation says there is equity, but it is under £5000 of 85% LTV then your IVA will conclude after 5 years.
If said valuation says there is equity of £5000 or more of 85% LTV then you will have to try to re-mortgage, if you cannot re-mortgage you will extend the IVA by one year.
That seems what most IP's are working off, but as usual it is what is in your proposal.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by AlmostThere30Take a look at Harrington Brooks own website here, this seems to define it quite well:
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Desperate BobHubby just called for advice & was told...
Its very straight forward,
Get a valuation
If said valuation puts you in negative equity then the IVA will conclude and there will be no extension.
If said valuation says there is equity, but it is under £5000 of 85% LTV then your IVA will conclude after 5 years.
If said valuation says there is equity of £5000 or more of 85% LTV then you will have to try to re-mortgage, if you cannot re-mortgage you will extend the IVA by one year.
That seems what most IP's are working off, but as usual it is what is in your proposal.
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 that seems to suggest that if we have £5000 equity regardless of ltv we will be extended
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Latitudee6400Thanks Latitudee. That does suggest as I first thought that we would be extended regardless of LTV.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by AlmostThere30Take a look at Harrington Brooks own website here, this seems to define it quite well:
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Desperate BobHubby just called for advice & was told...
Its very straight forward,
Get a valuation
If said valuation puts you in negative equity then the IVA will conclude and there will be no extension.
If said valuation says there is equity, but it is under £5000 of 85% LTV then your IVA will conclude after 5 years.
If said valuation says there is equity of £5000 or more of 85% LTV then you will have to try to re-mortgage, if you cannot re-mortgage you will extend the IVA by one year.
That seems what most IP's are working off, but as usual it is what is in your proposal.
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 that seems to suggest that if we have £5000 equity regardless of ltv we will be extended
http://www.harringtonbrooks.co.uk/iva/homeowners
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGilesI'm just not sure what else I can say to them Melanie. Twice now they've said the same & even their website suggests the same as we are being told??
I believe that the advise you are being given is still incorrect Karen, and I really do suggest that you now insist on speaking directly to the IP.
If you do this, let us know the outcome of that conversation please.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by AlmostThere30Hi Karen,
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGilesI'm just not sure what else I can say to them Melanie. Twice now they've said the same & even their website suggests the same as we are being told??
I believe that the advise you are being given is still incorrect Karen, and I really do suggest that you now insist on speaking directly to the IP.
If you do this, let us know the outcome of that conversation please.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by darth_ivaderHi Darth,
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by AlmostThere30Hi Karen,
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by MelanieGilesI'm just not sure what else I can say to them Melanie. Twice now they've said the same & even their website suggests the same as we are being told??
I believe that the advise you are being given is still incorrect Karen, and I really do suggest that you now insist on speaking directly to the IP.
If you do this, let us know the outcome of that conversation please.
Looking at example A on the Harrington Brooks own web site, it looks like they are taking into account 85% LTV on the equity!
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by AlmostThere30Something else to think about...
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by darth_ivaderHi Darth,
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by AlmostThere30Hi Karen,
I'm just not sure what else I can say to them Melanie. Twice now they've said the same & even their website suggests the same as we are being told??
Looking at example A on the Harrington Brooks own web site, it looks like they are taking into account 85% LTV on the equity!
They don't seem to have an example of someone that only has £5k equity!!! They have twice now advised if we have £5k or more we will be extended. They even gave my husband an example to show this
Karen.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by darth_ivaderIt seems to be in both names so only £5k. We can never get through to the ip. I've emailed several people that work there so am awaiting a response.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by AlmostThere30Something else to think about...
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by darth_ivaderHi Darth,
Hi Karen,
Looking at example A on the Harrington Brooks own web site, it looks like they are taking into account 85% LTV on the equity!
They don't seem to have an example of someone that only has £5k equity!!! They have twice now advised if we have £5k or more we will be extended. They even gave my husband an example to show this
Karen.
Do you and your husband have an interlocking IVA (i.e. you both have agreements in your own names), if so, do you both have the same de minimis clause in both agreements? I've seen it mentioned in this forum that you could actually have 10k de minimis (5k each).
In any event, as Melanie states you really should speak directly with your actual Insolvency Practitioner (as named on your agreement) rather than a general case worker who in fairness may not be as knowledgeable.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Jules79Thanks Jules.
Maybe wait until you have your valuation, it may come in lower than £5K so you will have actual figures to argue your point over. I'd be inclined to ask a couple of estate agents as they all vary one to another. When selling your house it is advised to get 3 separate valuations. I would be inclined to do the same in this instance.
I have also found that when speaking with my own firm and quoting advice from the forum they will be more thorough with an explanation. State what Melanie has advised and let them come up with the answers rather than trying to have the answers ready for them.
All the best
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