I think I read somewhere that sometimes in interlocking ivas the equity is £5k total and not per person but I do stand to be corrected as it was a while ago!
They have received their own valuation £2000 above that I have received.. thats which makes the next 12 months extension. Ive got in touch with two more estate agents and have asked for a written quotation based on how the house stands today the house needs a full re-wire to comply with regs (2 small house fires due to faulty electrics) electrics not been updated since the house was built in 1950
and a new boiler is needed so im gonna ask them to mark the house down accordingly. so it stretches that £1000 boundary so this is being sent in with an unsigned extension agreement asking to re evaluate my situation. fingers crossed
There is a lot of money at stake so do not roll over without a fight. Tell the IP that you wnat it in writing that the equity is £5,000 across both IVAs and tell them that you will be seeking independent legal advice. In addition their valuer could not have carried out an internal inspection without you knowing so any valuation you provide would be better than their 'desktop' or 'drive-by'.
You have grounds not to agree to this extension and with a year's payments at stake I think you should stand your ground.
Im going to ring the courts this morning, to see if the can have someone advise me on the literature from the section 6 of the chairman's modification. If they can't help I don't know which way to turn. I have written my letter highlighting and underlining, the areas of misleading statement from this report. As it refers to debtor as appose to debtors which indicates solely not jointly and also debtor equitable share so in English that refers to the share of the equity. Otherwise it would just refer to the equity rather than a share.
Im hoping im on the right road after 6 years on hold due to financial status, I have returned to education to complete my nursing degree and I really don't want to pull out, which I would have to to financially afford the next 12 months
Anita. I have seen modifications that refer to debtor's, debtors' and debtors 'share of the equity' which have all entirely different meanings. This may seem pedantic but when a legal document and substantial money is at stake the apostrophe [or lack of it] is crucial.
I hope your IVA can be closed down especially as you are doing your nursing degree and seriously consider legal advice. It may not come to this if your valuation comes in lower anyway but you entitled to fight your corner.
Im fingers crossed an praying thankyou for your input. I have just e-mailed a copy of my letter so waiting patiently.
Ive put it this way..
To whom it may concern,
We xxxxx xxxxxx and Miss xxxxx xxxxx Would like a re-evaluation to our 12 months extension on our IVA.
Please consider the following:
As a household our earning are considerably lower this year.
Axxxx xxxx reduced her hours recently as finally seeing the end of the IVA has enrolled in college full time to now progress a career in nursing, something that has been on hold over the past 6 years whist in the IVA and financial struggling. This was careful consideration after evaluating the situation of clause 6 in the chairman’s report, researching house prices in the area and making sure there was no equity.
We believed that month 60 was the end as in month 54 the equity bracket was very minimal, between house values of £89,995-£94,995 with an outstanding Mortgage amount of £90,000 and redemption charges etc. left little or no equity in the property. These valuations were based on completion of a full electric re-wire as the house needed to meet the regulations. The property also requires an updated heating system so this would reflect in the sale price. The local estate agents require a fee of £100 + vat for a written quotation, in which we just cannot afford. We did however manage to get 1 in print based on the top end value. Today’s date and month 59 which the values have been considered on there has been a slight increase on house values. This is only minimal but still has implications when the variation is £1000 over the £5000 threshold. Value of property, by drive by valuation of £96000.
The Chairman’s report is very confusing and misleading when referring to the terms detailed in the next paragraph, we believed as told by simple debt solutions, that we would be looked at solely into equity not jointly. So each of us would own £5000 share or more before our home was taken into consideration. This statement refers to debtor as appose to both of us debtors, and equitable share meaning each share. The statement also refers to debtors share when referring to 100% of the share of the debt. I have put in bold to highlight my questionable area of this confusing statement. We are currently seeking legal advice on this legal document.
Statement taken from the, chairman’s modification number 6.
After month 54 of the arrangement the supervisor will obtain a professional valuation of the property. The debtor will then obtain two re-mortgage quotes from reputable brokers / lenders to satisfy the supervisor that the equity realisation is the maximum achievable. The property shall be re-mortgaged to a maximum 85% loan to value less existing secured borrowings. A re-mortgage of less than 85% loan to value is allowable where the lower realisation will introduce funds equating to 100% of the debtors equitable share or where the arrangement will receive payment in full. Where the debtor is unable to obtain a re-mortgage, the IVA should instead be extended by up to 12 months. The amount by which the additional secured borrowings increase shall not exceed 50% of the monthly arrangement contribution at the time the mortgage offer is obtained. Where it is demonstrated after month 54 that the equitable share is less than £5,000 (gross) the property is to be excluded from the arrangement without extending the existing term. The costs of re-mortgaging to release equity shall be deducted from the mortgage proceeds and the monthly payments deducted from the contribution. If the increased cost in the mortgage means that dividends to creditors fall below £50 per month after fees, monthly payments are stopped and the IVA is concluded.
We greatly appreciate you taking the time to go through this. And are looking forward to hearing from you at your earliest convenience.
Anita. Fingers crossed this is acceptable and if the nursing does not work out you may consider a career in insolvency law! You will be an expert soon.
