www.iva.co.uk

Hi I'm with payplan and they have stated I need to pay an extra 12 months due to having equity but I'm not sure I do and I wonder if you can confirm if I do or not as I don't believe I do.

1st house

House value £135,000
Mortgage. £121,000

2nd house

House value. £90,000
Mortgage. £65500
Secured loan £8000

Many thanks

Mal

I believe the property you don't live in will, possibly, be treated differently,being a pure asset rather than a home. But, assuming they are treated the same way and assuming Payplan still use the old interpretation of the release clauses (and you have the usual clauses):

House 1) 85% of market value = £114750. Less mortgage leaves £6250 in negative equity.

House 2) 85% = £76500. Less mortgage and loan leaves £3000 positive equity -- not enough to trigger the release provisions

It could be the case that the 'pure asset' property does not get the 85% ceiling.

Thanks foggy

That's the calculations I came up with as well.

In the letter they sent they did say they used the 85% rule. But no mention my second property was based on asset only. I am awaiting for the equity review case to see how they have come up with there calculations and decision making.

Cheers again

Mal

Are they solely owned by you?

Hi Lisa

Yes they are

Follow Foggy's advice and figures and challenge them.

Hi Lisa

Thank you I have done and sent an email payplan I'm just waiting for a reply...

Hopefully it goes my way. If they refuse to move I'll need yours and foggy's help!

Thanks

Mal