Hello its me again i have a few more questions to ask
As i have a propeety but not enough equity
I am wondering when do they see if i can release any equity is it at the end of the 4th year or start of 5th year?
Also if i was to offer them a settlement figure whould it be for the remainder of the months left until the end of the 5th year or will they still want me to pay till the end of the 6th year as i have a property?
Assuming you start off with a 5 year IVA they will look at property in month 54. Unless you can prove that you are definitely not going to trigger the equity release clause it is usual to assume the 12 month extension. So a F&F will be based on remaining payments plus the 12 for equity.
Do not use the term "settlement" -- that is a whole different ( and more expensive) animal ! It is a "Full and Final Offer"
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Aisha wrote:Ohhh right full and final animal from now on
How will i be able to prove the equity release clause
At month 54 they will ask for a valuation on the house along with a mortgage redemption statement --- so, if you are trying to "predict" that review you need do much the same --- you will need to prove that the equity available now is well under £5000 and argue that this is unlikley to increase much between now and month 54. You can have a look at the rough figures yourself to see if it is worth doing. Get a rough value of the house from Rightmove or local adverts and you shpuld have a rough idea of the outstanding mortgage.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
You can normally provide the information for the review yourself or your IP may use an agent to determine how much equity is available and whether or not it can be raised. Most people cannot raise equity and the bulk of IVAs are extended but things change and there may be more [or less] products available in five years.
If there is equity available at the moment the IP will show this as an illustration but if you cannot release this money it is not a commitment and your IVA will be extended.
