We are heading on to the time when we need to look at an equity release. Under the terms of our agreement:
- We must attempt to release any equity from the property
- If the equity can not be released, the IVA will be extended for 12 months
- LTV must be a maximum of 85%
- If the equity is less than £5k, it will be disregarded and the IVA will finish at month 60 with nothing extra to be paid.
I am awaiting the official figures from the mortgage company and secured loan company, and need to have the house valuation done, so these are all fag-packet figures.
An 85% LTV on the approx. house value (which I have been quite generous on!) is around the same as the current mortgage amount (to within about £500 based on estimated figures), so instantly there is no equity - or at least nowhere near £5k. On top of that we then have a secured loan which adds around a further £8k.
Our mortgage and secured loan come to around 93% of the value of the house so even working on estimated figures there is no equity at 85%LTV in the property.
Will the IVA co look at this and use common sense, or will we still have to go through the hassle of having two companies out to value the property (which presumably is going to necessitate time off work etc?) ?
Hope all that makes sense?!
Last edited by llamedos on Fri Jan 10, 2014 9:01 pm, edited 1 time in total.
The end is in sight - months not years!
Looking forward to a brighter future for my children!
Hi, this does make sense. I'm afraid there is no way round the valuations. That I am aware of. If you have no equity then there should be no extension in term. But this will depend on the wording in your proposal. But it seems you have a protocol compliant IVA and they are all fairly standard in wording. Your I.P may be able to assist with the cost of the valuations.
Last edited by winter_blues on Fri Jan 10, 2014 9:39 pm, edited 1 time in total.
There should be no cost, as we were advised to approach estate agents and say we were looking to sell to get a free valuation from them. I'm not totally comfortably with doing that as it is dishonest and surely if the IVA industry require valuations as a standard thing, there should be an independent body that can carry them out?
But, I digress.
It just seems a ridiculous waste of everyone's time and energies - I can show the mortgage statement, the secured loan statement, the original purchase details of the house, the zoopla valuation, the selling prices of other houses recently sold (the whole estate is identical houses, less minor differences like heating types. The most recent one (which was better condition) sold for 25% less than we bought ours for 8 years ago!).
It just seems a bit crazy when it is very clear that there is no equity to be released.
Then again, it will fill some time while we wait to hear from the PPI side of things
Last edited by llamedos on Fri Jan 10, 2014 9:44 pm, edited 1 time in total.
The end is in sight - months not years!
Looking forward to a brighter future for my children!
You will have to do what the proposals dictate you have to do - however any costs incurred should be met by your Supervisor out of the IVA funds and not out of your own pocket.
Hi
I am in the process of trying to release equity. My IP offered to arrange a valuation for me (by the same company that did the original when I started my IVA). The costs for this will be deducted from my payments. I felt this was a better option than an estate agents as I also did not want to "spin a tale" and then be hassled to put my property on the market.
My thoughts are that a surveyor will give a valuation more faithful to the actual value ( as used for lending purposes) rather than an estate agent, who will value according to marketeering ( good value to get you hooked to place the property on their books, and a margin for them to offer reductions to interested purchasers).
However you get the valuation done, it is good to check against sales locally on the likes of Rightmove, who record actual sales achieved. Zoopla value estimates are far too averaged to be relied upon for something so important.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I got my valuation 6 months ago I paid £40 to a local agent for a valuation. When he arrived I told him the truth that I was in an Iva and needed a valuation based on a forced sale the upshot was that he valued the house £20,000 less than the price he would have marketed it for . this put me under the 5k equity release clause and has saved me 5k worth of extra payments £ 40.00 well spent Marcus777
I rang an estate agent and told them a little white lie! They valued my house for free and sent me the valuation pack via email to consider, I forwarded this to my IP who accepted this and my IVA concluded.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
