You need to sit down with your IVA team to put any concerns to them directly, your IVA is as individual to you as mine is to me. The advise you are getting off the forum is general at best and even if well meaning may not actually apply or help you. The only 'eggs is eggs' you have stated is that all this worry started when some cold calling firm planted the seeds of doubt to you. If you discount this spanner in the works is the IVA actually working?
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
You have two immediate areas of concern here, you dont seem to be aware of your year 4 equity release clause perhaps you dont have one, you need to read your proposal very carefully,
The second point is the value of your home which on 166k and 275k are two very different valuations, my questions are as follows
1)Did you supply a written valuation of your home to the nominee, because your creditors have been told your home is worth 166k and based on that valuation, approved your IVA because they realise they are to get something quite less than 100p in the pound if they make you bankrupt, However if the true valuation of your property is £275k with 75k in equity versus 40k of debt then the creditors have been given false information,which is an offence. So to summarise who provided the valuation you or the nominee
I have checked my IVA and the 4 yrs clause is in there.
The value of my home was provided by the IP utilising an online valuation tool, which is documented within the original proposal. They provided the value not me!!!
That's why I am concerned, because until now I didn't realise the importance of it.
The IVA is in both my wife's and my name, as is our home.
The only issue perhaps or reason (after trawling through the documentation) is the loan to value of the mortgage is above 75%, so no remortgage or equity release is possible - does this sound feasible?
The company were fully aware of the value of my house too, as they had my mortgage statements etc.
This all seems incredibly odd - are you really saying that your IP did not discuss the implications of the equity release provision with you - and relied on an on-line valuation rather than getting you to source one from a loval agent?
If so, then I would be very concerned about the level of advice initially provided to you - however you did sign the proposal documents, presumably after being advised to read through them carefully? That said, the IP has a duty to ensure that their clients are fully aware of the provisions, and document that their clients have confirmed their understanding.
There is a considerable disparity in the figures reported here - but I am assuming that the property is currently worth £275k with a mortgage of around £200k outstanding and that you only have to raise equity at a loan to value of 75%? Is my understanding correct?
You are correct re para 1. There was never a discussion about equity release and no real emphasis placed on the yr 4 release. However, they were acutely aware of my mortgage level at the time, as it's documented within the paperwork.
Plus, you are right, I did read through and jointly sign with my wife. But, it's only now with the help of this forum, that I really understand the process.
My home is worth 275k. My mortgage is for approx. 200k.
What should have happened?
Will any equity release be possible in yr 4, due to the high value of my outstanding mortgage, if not I assume the IVA will extend into yr 6??
Still really concerned with the initial process, was an IVA right for me?
If the loan to value stipulation is 75%, then there may be little if any additional monies for you to actually raise - but I would get definite confirmation from your IP as to what you are required to do, and run this by an insolvency experienced lawyer if you are still unsure or feel that you were co-erced into signing something that you really did not understand.
I would doubt very much whether you will find anyone prepared to re-mortgage you - but that is a good thing as it is pretty unfair to expect someone to take on a larger financial commitment at the end of a lengthy repayment period in any case - so at worst cases hopefully the additional years' payments is all you may have to make.
I think it is very likely that your IVA will extend by one year instead of you releasing equity, it is near impossible to obtain a mortgage whilst in an IVA.
What does your chairmans report state regarding being unable to release equity ?
It doesn't mentioned "unreleaseable" equity. It simply comments that my mortgage hasn't been included thus far, but in year 4 will be reviewed whereby my home will be commercially valued.
Your home should have been commercialy valued at the inception, if your valuation is anywhere near correct the IVA would have been rejected because you were both solvent but struggling to meet payments. It is my opinion that you are going to end up paying more back to your creditors than if you had gone down the normal DMP route which was the start of this thread.
The nominee to whom owes you and the creditors a duty of care should explain to you why your assetts were devalued to the tune in excess of £100000,which would have been required in order to get the IVA agreed. The problem is James the nominee will state they relied on information supplied to them by yourself, however if as you state you did not furnish the nominee proper valuations of your home then he/she needs to explain why they were not more thorough in obtaining accurate valuations of your assetts, as I said earlier if they had then they would not have had your business,
James is is a very serious offence to give false information for the purpose of obtaining approval from creditors to approving an IVA, I am not for one minute stating you have given that information, but that is whats in your proposal.
This is the issue. They did know exactly, the values as my mortgage statement was part of the documentation supplied. In the report they document the value being £166k, but then go on to state my remaining mortgage is £202k, clearly a contradiction as it's nearly impossible to have negative equity of £36k ( i would suggest).
I come back to my original thread and that of the cold calling finance company, should I have remained on a DMP, due to being solvent??
Furthermore, checking the paperwork. The IP states;
"I have not obtained professional valuations of the assets in the proposal, however, with regards to the debtor's property; I have obtained a valuation from an online based valuation". The debtor has also provided me with a copy of a recent mortgage statement.
The start of this thread was "Was the IVA the best option" I think you may be beginning to know the answer to that, at the end of the day this is simple, Assetts 275k liabilities 40k secured liabilities 202K, you are solvent, why are you in an IVA, you know last week we had the North East Derbyshire CAB on here I would love to hear their comments on this thread. Long live the free sector thats what I say.
It will be interesting to see what valuations you receive come year five, most properties will have fallen a little rather than risen over the five years.
On your initial figures it would appear that an IVA was not the best route for your creditors.
