www.iva.co.uk

Hi all, I'm new to the forum so bear with me! My IVA is due to finish in Feb, I have sent my mortgage statement and 2 house evaluations today, so I rang and asked if I should be ok not for it to be extended. She said as an estimate I would have £211 equity wtf?!! She clarified 'only an estimate but may be more"! How can that be when I owe £76.000 on my mortgage and the valuation of my house it £90.000! I really need this to be my final year can anyone help please?? Thanks

Hi -- it depends on who you are with as to how they interpret a badly drafted clause ! Most would say 85% of £90,000 is £76,500, giving you £500 equity, so no extension.

Have you mistypes the equity figure above ? If not I can see no real problem.

Hi, those figures are correct. I'm with freeman Jones, she said on the phone that it will need tone extended because there is STILL equity in the house, and yes there policy is 85%, I'm not very good with calculations! Thanks for replying

Will I need an extension of a year or can I just pay the £211 (if the figures are correct)?

Actually think she said my mortgage is £76,300? Does that mean I still have equity I can release?? Sorry for all the questions but I'm getting stressed out

It depends on the wording as some proposals state you must introduce 85% of your interest in the property whereas others state you are to remortgage to 85% of the property value. These are two different things and hopefully Freeman Jones can help you. They have representatives on this site such as Steve Hewitt ansd his details are in the experts section.

Ask her to put their calculations in writing for you.

They have never mentioned about remortgaging, just said to introduce up to 85% of equity, can someone work this out for me please??

I believe some firms will take £90k x 75% = £76.k less your mortgage of £76k and say equity is £500.

Others will take £90k-£76k x85% = £11,900.

Lisa it's the first one you mentioned, can they extend it for another year of its just £211 in equity?? Thanks

Check your paperwork ... do you have the £5000 de minimis clause ? If so and equity is agreed at less than £5000 there is no extension and no need to release any equity.

Basically what I'm trying to say is I have £5211 in equity so therefore it's over by £211? Does that make sense? X

Yes, I see what you mean. The de minimis is just a trigger point. If you have £4999 equity they will ignore it ... if you have £5001 they will go for £5001 NOT just the quid over the trigger point.

So, yes, if you were a pound over they will apply the extension. However, there is a good chance that their valuation is on the high side and it might be worth getting you own valuation done to challenge theirs. £100 spent could save you a years payments/

Well I'm b*****ed then because that valuation was my own estate agent that came out! Don't u think they will let me just pay the £211 off???

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Michael Peoples

It depends on the wording as some proposals state you must introduce 85% of your interest in the property whereas others state you are to remortgage to 85% of the property value. These are two different things and hopefully Freeman Jones can help you. They have representatives on this site such as Steve Hewitt ansd his details are in the experts section.

Hiya, I'm trying to get a message to Steve Hewitt, I've looked at his profile but can't seem to find where to message him?