www.iva.co.uk

Im after some help understanding the equity clause. Im in an interlocking IVA with my husband the 60th month is October but we have the equity clause.
The IVA company creditfix has advised that the full contribution will continue for a further 12 months.

based on property value £96,000
mortgage redemption £89,662.90
equity £6,337.10 each share £3168.55

We each have a set of proposals set in the chairmans report we each have section 6 which is as follows
After month 54 of the arrangement the supervisor will obtain a professional valuation of the property. The debtor will then obtain two re-mortgage quotes from reputable brokers / lenders to satisfy the supervisor that the equity realisation is the maximum achievable. The property shall be re-mortgaged to a maximum 85% loan to value less existing secured borrowings. A re-mortgage of less than 85% loan to value is allowable where the lower realisation will introduce funds equating to 100% of the debtors equitable share or where the arrangement will receive payment in full. Where the debtor is unable to obtain a re-mortgage, the IVA should instead be extended by up to 12 months. The amount by which the additional secured borrowings increase shall not exceed 50% of the monthly arrangement contribution at the time the mortgage offer is obtained. Where it is demonstrated after month 54 that the equitable share is less than £5,000 (gross) the property is to be excluded from the arrangement without extending the existing term. The costs of re-mortgaging to release equity shall be deducted from the mortgage proceeds and the monthly payments deducted from the contribution. If the increased cost in the mortgage means that dividends to creditors fall below £50 per month after fees, monthly payments are stopped and the IVA is concluded.

I have further clauses from 23-30 that my husbands doesn't have the equity clauses is also stated in section 23

23. The debtor’s property is to be professionally valued shortly after the fourth year anniversary of the arrangement. The debtor’s equitable interest is to be realised and paid to the supervisor before completion of the arrangement. The interest is to be calculated at 85% of the debtor’s share of the gross equity, subject to a de minimis threshold of £5,000. If funds equivalent to 85% of gross equity cannot be raised at the time of valuation, the supervisor may contact creditors to discuss an alternative figure. If necessary the arrangement can be extended to allow an equivalent sum to be paid by way of ongoing contributions for a period of up to 12 months

Please help

Go back and query this as 85% ltv is £81,600 -- taking off the outstanding mortgage leaves a negative figure, so no extension should apply.

I have done but they state its £5000 gross equity in the property not the equity share as indicated in the print

Also -- using the way THEY calculate in in clause 23: Equity 6337.10 at 85% is 5386 and each share would be de minimis also.

On the numbers you've provided there, I don't believe you'd be required to extend by 12 months.

Well worth challenging with your IVA co.

I have obtained two property valuations £93000 and £95000 so working of the £95000 Ive worked the figures to be based on the following
maximum equity £5337.10 (de minimis threshold £5000)
85% gross equity £4536.54
based on the total equity the sum owing would be £337.10 due to the de minimis clause
or based on 85% no further extension is this right?