www.iva.co.uk

Hi all!

Just thought I would share some info and ask some advice.

Just had house valued at £145,000-£150,000 with local estate agent.

I have requested redemption figure on our mortgage too which is £147,158 plus £250 discharge fee.

will I have to extend iva for 12 months based on this info or will it cease in october?

Kind regards

Hi

It will depend on the wording of your IVA however as you have no equity above 5k then your IVA should conclude without any extension

Regards

I had a similar thing with mine last year and i didnt have to pay an extra year, but i think it will depend on your IP and your creditors.

Thanks for your responses.
Maybe we can finally see a glimmer of light at the end of this dark and depressing tunnel.

our proposal/chairmans report states.
at month 54 we need obtain a valuation if there is more than 5k equity then we need to release by way of a remortgage. (85% ltv)
If we cannot obtain a remortgage then a 12 month extension applies.
If there is less than 5k equity then the IVA finishes at month 60.

I hope this clarifies what situation we are in.

Just be careful you don't also have this clause as it over-rode all other clauses in our chairmans report:

"If the amount of equity available in the property is under 5k, it is De-minimus and does not have to be released via remortgage. However the IVA should be extended by a maximum of 12 monthly additional contributions, or until contributions have equaled the estimated available equity, whichever is the sooner"

If you do you might want to read my thread here:

http://www.iva.co.uk/forum/topic.asp?wh ... 652#544722

Thanks Til

that would indicate to me that your iva was set on a 6 year term from the onset?

ours is not it is 5 years and is due to finish in october.

we are getting a written valuation stating the house is worth £145,000 which shows neg equity. I will forward to my IP along with redemption statement when received and hopefully (fingers crossed) it will be over in october.

Yes our was a 6 year term from the beginning - not protocol either. You're doing right thing by getting valuation in writing then if negative equity its a simple matter of no extension. We are due to finish in October too so fingers crossed for you and us

Yes,Defo Fingers crossed for us both Til, hope everything goes ok for you during these final months.