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Hi we are almost at the end of our 5yr IVA, which has been very stressful and at times difficult but we have always made our payments.
Have had paperwork through for month 54 house value.
Please would someone be able to help with the equity issue. House value expected to be around £220000-£230000 with outstanding mortgage of £182000. It is a joint IVA and a joint mortgage so not sure how it all works. Would like to know how likely an extension will be.
Thanks, any advice greatly received.

This is borderline as to an extension assuming you have the standard equity conditions so I would suggest you instruct a valuer. If the valuation comes in any lower than £220k you should not need an extension but anything over that and it then depends on wording and interpretation.

You should also check and see if there are any redemption penalties on the mortgage as this would further reduce the equity.

Thank you Michael, Equity clause is 85% LTV with a £5000 de minis clause it is the same for both IVA'S
I am awaiting confirmation from the mortgage company ref redemption statement and have an estate agent doing valuation later today.

Make sure and point out any faults in the property and advise the agent that you would like a 'forced sale' valuation. You may have to pay for this type of valuation but money well spent in the long run. We allow this as an expense of the arrangement anyway so you should not be out of pocket.

Thanks Michael, Have had estate agent this afternoon and he has said £220-225000, but with reference to needing a new roof and a few other little jobs so would expect to achieve £210000-£220000 on a forced sale basis and the work needing doing.

Hi all have received valuation of 220-225 and redemption of 181,910. Does this mean there would be no extension? It is joint iva and joint mortgage. Not sure how the ltv is worked out and where the deminis clause fits in. Sorry to ask just don't get how to work it out
Thanks for any advice

Will keep this bumped at the top for you ..from what Michael said earlier anything lower than £220k would probably not mean an extension for you.

85% of £220k is £187k which means there is equity available at that loan to value of £5,090. This exceeds the deminimis clause but if there are 2 IVAs then there may not need to be an extension as the equity would be each. That is why I said in an earlier post that this is borderline and depends on your actual IVA proposal.

Had the value been £119k there would have been no grey area at all.

Thanks Michael, Sorry I misunderstood your earlier post. Thank you for your response I can see what you mean now it is going to be a close one. Lets hope they are on a good day when they receive the paperwork! The IVA is joint as is the mortgage so assume it will be £5000 de minis each as the equity is shared.
Interestingly though we have only received a request for information in my husbands name and not mine?