Hi
Im 5 and 1/2 years into my 6 year IVA and im supposed to have my house valued and send it into IVA company.
Do i wait until im contacted to do this or do i arrange my own valuations and send them in?
Hi, this will depend on your IVA firm. I got on with it myself only to find that my I.P had arranged their own valuation bug I managed to stop that in time.
Maybe best to give them a call. But, if your check your original proposal the wording may give you a clue. By doing it yourself you can also make sure you get a forced sale basis as opposed to a market value.
Normally your IP would be in contact to request the information or they can instruct valuers themselves. However I agree that it may be worth being pro active and do it yourself especially if the equity situation is borderline.
Hi
Yes its very borderline. I purchased the house 10 yrs ago with 85% LTV mortgage on an intersest only mortgage. I Then borrowed 10,000 secured loan from mortgage lender ( northern rock ) so not sure if this saps up some of the equity too?
I think i shall get some valuations myself and send them in. Do i ask for a forced sale valuation or just standard?
It is worth paying for a valuation and getting a forced sale or restricted realisation one. If you try and get a free one the price could be artifically inflated by the agent hoping to get the sale so better to just pay for it. We allow up to £100 plus VAT for valuations and pay it as an expense of the IVA. Hopefully your own IP does the same.
Some IP firms do advise their clients to get free valuations but this is wrong. Firstly the valuation may be inflated but secondly the agent is being mislead into doing work for nothing with the forlorn hope of getting new business. People deserve to get paid for what they do and that includes estate agents!.
You could wait for your IP to contact you but this might delay matters and they may use a silly figure from Zoopla. Suggest you contact the IP about it to get the ball rolling and then consider getting your own valuations. It's always worth trying for a freebie one line email if you can get it and it gives you the figure you want but you might ultimately have to pay for a formal valuation depending on what happens.
We did a free valuation with a local agent as I did a little fib and said I might be being made redundant and so needed to sell. They gave me a written one which I sent off to Payplan and they were fine with it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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I too was borderline, and would definitely advise starting the ball rolling yourself. I contacted a couple of local estate agents, and asked for a forced sale valuation. I told them about my IVA too, and they both were happy to provide me with a free valuation. I then sent everything to my IP, including a mortgage redemption statement and also showed the calculations as I saw it. The figures put me under the £5k de minimus, based on an 85% LTV, and the IP sent me back a confirmation email to confirm there was no equity! Very straightforward.
I know its a very stressful time, particularly if its borderline, but good luck and hope it works out for you!
That sounds very promising then. My house is worth 148,000 to 150,000 and i have a mortgage of 128,000 plus 10,000 secured loan from mortgage lender so owe 138,000 in total giving either 20,000 equity or 10,000 equity if secured loan taken into account. 85% of 150,000 is 127,500 so am i right in thinking that my little bit of equity wont take me over the 85% LTV threshold??
My IVA is with Grant Thornton and had no probs so far
Last edited by Andy.75 on Wed Oct 21, 2015 2:07 pm, edited 1 time in total.
You certainly are over the 85% loan to value for a remortgage and the secured loan is taken into account. However some IP firms will extend if 85% of your 'interest' in the property exceeds £5,000 which would be the case if the property is owned in your sole name. If the property is jointly owned then you are de minimis in all ways of calculating.
The house is solely in my name but i am married and have been for 10 years so im not sure if they will take into account that my wife is entitled to half the equity?
She certainly would be entitled to make a claim but as Lisa says this should have been addressed within the original proposal. Hopefully the 85% loan to value is used anyway so the question is moot but if not push her claim.
Just a quick update....
Spoken to GT they say 85% LTV upto 5000, anything over that i have to remortgage.
Ive spoken to some estate agents, two wanted 75 + VAT to do a written valuation, and two said they are happy to do it for free. I told them the truth regarding why i wanted the valuation.
Think i will have to make the house really untidy and ransack it or something to see if they will value it slightly on the low side, lol
I just hope everything goes through ok because i firstly had to agree to a six year IVA instead of 5 yrs and with only 5 months left to pay at nearly 500 a month i have'nt missed a single payment and thought the end really was in sight
At 85% loan to value there is nothing to be raised as the secured loan is taken into account. You did the right thing telling the agent why you want the valuation and the £75 plus VAT could be money well spent.
