www.iva.co.uk

I have received an e-mail at month 67 stating the following : "We have completed an equity assessment on your property using the following rule:
Six months prior to the expiry of the IVA there should be an attempt to release home equity (this would normally be after month 54, unless the IVA has been extended for any reason). However, where I am unable to obtain a re-mortgage, the IVA should instead be extended by up to 12 months".The amount they have used in the calculation is £5000 more than the valuation I supplied to them at month 58.This delay was down to their internal re-organisation which caused a backlog in their equity release cases, which they have apologised for.I asked for the figure of the total remaining debt.I have asked 3 times for this now and still not got a reply, as the conditions state that "there will be a cap on the total equity release to not exceed 100% of
the remaining outstanding debt" then this figure is crucial for me to apply for a remortgage. After supplying the valuation and mortgage statement in October 2015, the next time they contacted me was 18.1.16 with an annual report. Nothing then until a phone call 16.5.16 when they left a message to call back. I returned the call and was told no one was available. I received the afore mentioned e-mail on 4.6.16. Where do I stand with complying with the IVA? They have not supplied me with any of the information that I need in order to proceed with trying to release equity.Also, due to their delays which they admit are due to their re-organisation,does that mean that they can ask for an equity release at month 67?

Hi. At the end of the day equity has to be addressed. The remortgage amount is really immaterial, as you will not be able to remortgage anyway.

The only issue is if the valuation shows more than £5k equity (if you have the £5k de minimis trigger clause).

If you are content that thee is more than £5k equity there, then the 12 month extension will apply.

Were you on a 72 month IVA initially, or are you well into the extension year anyway?

Hi and welcome,

The remortgage is irrelevant anyway as you won't be able to get one and the figure should be 85% LTV not 100% - never known anyone have to do that.

You do need to press them as it's not your fault they have a backlog.

Which company are you with>

Cheers Foggy. The 85% calculation is used correctly later on in the e-mail and it is more than £5k, even with the incorrect valuation figure used. The issue is the fact that the equity is potentially more than the amount of IVA outstanding, therefore their 100% cap would apply. I therefore need the outstanding figure if I am to approach any lenders for a remortgage so that I do not borrow more that the balance of IVA. I am with Freeman Jones btw. It was for 60 months and their standing order ended at month 60. I am now at month 67 and they have never discussed an extension of this IVA. I thought you needed to be given an extension cert at month 60 if so? If they have missed crucial deadlines due to their delay, have they breached the contract?

Never heard of an extension certificate so don't think they need to give you one.

If I understand correctly, there is equity, even at your valuation figure, so I cannot understand where the breach is from and your contract is between you and the creditors so the IP cannot breach it anyway. It's your obligation to comply withthe iva and if you don't, you will not complete.

As you knew there was equity have you saved or have you made 7 additional payments? I assume this is a catch up with admin on their part but it is your iva. It is almost irrelevants saying that you will have to remortgage as it's nigh on impossible. In reality you have 5 more payments to make I would think.

Email again though as they are obliged to provide you with your outstanding balance.

Hi Chrissie. The point is that you will not get a remortgage -- no-one does. You have to go through the hoops of trying to get one, then you will get a 12 month extension, so the amount is immaterial.

I would send an email to Steven Hewitt. He has a good track record of getting things sorted.

Hi Chrissie.n,

Looks like you've already received some good advice on here. I'd like to look into this specifically for you and get things sorted so you know where you're up to with your IVA.

Please pop me an email to Steve.Hewitt@Fremanjones.com

I look forward to hearing from you soon.

Regards

Hopefully Steve is able to resolve this for you.