www.iva.co.uk

We are 6 month away from the end(5 years) of our IVA and just had the equity release question.
We are with Aperture ex. Grant Thornton and our valuation was £250,000 with £205,000 mortgage outstanding.
So with my calculations LTV = £212,500, which then leaves £3,750 each share remaining, which is below the £5k.

Not according to Aperture, who say we need to re mortgage or pay another 12 months.

Where can i go from here?

Thanks in advance

Hi and welcome.

Ask them to show you their workings, refer them to your proposal and hopefully all will be sorted, Was it an estate agent valuation that you provided?

Aperture are using there own interpretation of the equity release clauses, which, in many cases are badly written enough to allow this. They calculate equity on straight figures then say you need release 85% of the equity, ignoring the LTV aspect.

You need to examine your own proposal to see how your own clauses have been constructed. If they make any reference to annexes 6 & 7 of the Protocol, or have a sample calculation, Aperture MUST use that method and not their own, twisted, version.

This is particularly galling as Aperture, when they were called Grant Thornton, were on the standing committee that oversaw the introduction of the correct equity clause and know, full well, how it is supposed to be interpreted.

Thanks.
I did use Zoopla online valuation, but I do think it's about right.
I emailed them straight back, asking how they calculated the amounts and I'll check the exact word on my IVA (hopefully will it quote the annex)
It's more annoying as when spoke to my IP a couple of years ago and asked him the question regarding equity release, he told me that they take 85% of property value then deduct mortgage!

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Iain.02

Thanks.
I did use Zoopla online valuation, but I do think it's about right.
I emailed them straight back, asking how they calculated the amounts and I'll check the exact word on my IVA (hopefully will it quote the annex)
It's more annoying as when spoke to my IP a couple of years ago and asked him the question regarding equity release, he told me that they take 85% of property value then deduct mortgage!

That is the way it should be done and is the way they used to do it until some bright spark thought of a way to get more money into the pot to, in my opinion, the detriment of the debtor and going completely against the spirit of the intention of the clause.

first start by challenging the valuation.

Then challenge the calculation by comparing to terms in your IVA documents and in particular any examples.

I have recently helped someone challenge the same query and their IP backed down.

when we remortgage with natwest last month we used zoopla to give the bank a valuation figure but they said zoopla is way over the price and that most banks use http://houseprices.landregistry.gov.uk/price-calculator to get a figure for their valuations. The government site valued our house £30,000 less so maybe use that one to query the valuation.

To be honest I think the Zoopla estimate is about right, maybe bit on low side if anything. The land Registry site gives estimate bit higher.

Personally I would want a real estate agent to come over and have a look at the property for a realistic valuation.

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

Personally I would want a real estate agent to come over and have a look at the property for a realistic valuation.

I managed to get another online valuation which is lower, which they are happy to accept and this takes it under the £5k each. So count down is really on [:D]

Thanks for your help

Great news Iain!

Excellent !

Brilliant news, well done!