the " de minimis" clause is in our proposal, and have just read on wikipedia what de minimis means - "In risk assessment, it refers to a level of risk that is too small to be concerned with"
but could i clarify what Foggy has mentioned,
1) that £99,450 is the LTV of the house.
2) actual amount outstanding is £98,650
3) is the de minimis figure the 5k mentioned ?
4) and if so, it means that even with the current valuation of £117k, then we should not proceed into the 6th year ?
maybe this is what PJG was saying in that it was very unlikely a sixth year would kick in because of the negative equity, the amount we would have paid off the mortgage in 5 years and the property value. I know the latter is hard to predict, and probably why they wouldn't commit absolutely. But PJG had common sense to see that it was unlikely.
i'm more than happy to post the actual wording of this from the proposal, but i dont want to break forum rules - would this help ?
the advice from everyone is fantastic, and i really do appreciate it. It does make me realise how good the support was from Melanie and her team in the last 5 years.
I would just reply that under the original terms of the proposal the IVA cannot be extended and you would be grateful if they would confirm this asap!!
Our IVA's are with PJG and the £5k de minimus wording at 85% Loan to Value is in both of them. Therefore, in your case as others have said, even assuming the higher valuation of £117k, 85% is £99,450 minus your borrowings (£98,650) = £800 which obviously is below the £5k and therefore no extension is required. If your IVA was with PJG then this wording is almost certain to be in your proposal so check it out and, assuming you haven't signed any amendments with Creditfix, the terms will have to remain. Good luck.
Do not let this lie and demand in writing how they can justify an extension. This will then allow you to check the legalities and challenge the decision.
I agree with Michael. I imagine, maybe, CF use a different equity release provision and the case worker, in haste, is applying there own terms without checking.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Foggy
I agree with Michael. I imagine, maybe, CF use a different equity release provision and the case worker, in haste, is applying there own terms without checking.
Now there's a very good reason not to sign the new T&C CF have issued!
Last edited by Rock20 on Thu Dec 25, 2014 1:36 pm, edited 1 time in total.
Hi anotherbump, I hope you dont mind, but I was just wondering how you got on with challenging creditfix over this? The reason I ask is that your situation sounds very similar to my own. Month 54 for me, is in March and my property valuation is going to be very important as the current house prices will make it a very close call on whether we extend or not. I have been watching the sold house prices in my area like a hawk, however the true value, and that of desktop valuations like Zoopla, are way out. I was just concerned that they would take one look at Zoopla or equivalent and take it at face value, and not allow me to get a proper valuation. How did you get on?
Lou74. Check the wording in your proposal. In my case, it was up to me to get the valuation and not them. This way you can ask for an immediate sale price and point out all the jobs that need doing etc. Some IPs allow the cost of this to be deducted from the monthly payment although some estate agents will provide a free valuation anyway. If it's the difference between closing at month 60 rather than an extension, it will be worth it.
Definitely get your own valuation - we used local estate agents, if the figure they give verbally would result in the 12 month extension ask them for a 'quick sale' valuation.
Thanks for your replies. Yes, Im sure my proposal states that I should seek a valuation, and I am quite prepared to pay out for this if necessary, as a few thousand on the valuation could mean the difference between extending and not. I was just concerned by the OPs situation, and the way creditfix seem to have insisted that the drive by valuation stands and being generally unhelpful in trying to conclude the IVA at 5 years instead of 6. This is my main concern about the move to creditfix. I felt sure that Mel and her team would have been on my side in getting a favourable valuation, and concluding my iva on time. Id seen Mel stating on her that she didnt trust Zoopla and the like and to always insist on forced sale valuations. It stands to reason that having only just taken my iva on, it would be in CFs interest for me to extend, so I can just forsee them not being very helpful at all, as it appears they were in this case.
Lou we are in virtually the same position as you and that's our main concern too, the equity, its worrying me to death, part of our living room floor collapsed last year (rotten joists) and we have just had to keep it covered and the kids well away, a drive by valuation and our house would probably be valued highly totally different story if they step through the door almost 6 years of little maintenance to an already slightly run down property have taken a huge toll!
Not sure if it will help but we made sure we had the valuation done & in writing ready to submit at the start of month 54 along with our mortgage redemption letter etc - if you can have your info ready before they ask it may prevent them going to the trouble of sorting their own valuation!
Oh god mrsbee, that sounds awful. I know our roof needs doing desperately, and the whole house is so tatty and in real need of decorating throughout. Thats a great idea dancer, thank you. I think I might just do that.
