Quick question RE.Equity and final year?

[mrsbee]

Hi everyone haven't been on here for a while we are plodding on in our IVA and even though things are tight and sometimes a struggle we know we did the right thing in taking out an IVA.
Quick question though, when we entered our IVA we had our house valued (it is mortgaged) and there was approx. £20k equity in it so in our contract with our IP there is a clause that states we can either remortgage (highly unlikely I know)or pay an extra year into the IVA. We are fine with this BUT our house is falling in some disrepair (for example before xmas our hall floor collapsed (rotted away joists and all) we had to go without a lot (food mainly to scrape enough cash together to have the joists and boards replaced the plaster is not on most of the lower walls no skirting boards etc as you can probably imagine it looks a bit of a mess, then about 2 weeks ago the joists in our living room went luckily it is up a corner and we have moved everything furniture wise and cordoned it off from the kids we simply can not afford to replace this floor whilst we are in the IVA, the room is a through room and therefore large. With only a few years left of the IVA now I am wondering how this affects the final year/remortgage as the valuation is bound to much lower than it was?! Bit worried really so thought someone may be able to advise, before I pester my IP with it when it may not be relevant at all. Sorry rambling now so I will shut up [:I]
Thanks in advance

[josu]

Well i dont know for sure so i hope an expert will be along shortly to tell you but i think and i hope that if it has dropped enough you may be able to finish at month 60. Im in my final year too and in negative equity. In fact it is month 54 this month so im about to get valuers in e.t.c.

[Michael Peoples]

It sounds like there will be no equity in the property and hopefully the IVA can be closed down after 5 years. Make sure and get a proper valuation to reflect the state of the property and do not just use online valuations.

[mrsbee]

Thanks so much have been so worried about it so that's good to know. Not a nice environment to live in at the moment but we will get there in the end, hopefully

[Mont]

Hi everyone this is my first time to have the courage to write on the forum and ask questions. So if you can advise that would be helpful.
I am in my 55th month and I sent my mortgage amount plus secured loan paperwork plus property value in recently.
I worked it out as stated on your forums and from my paperwork originally RSM tenon then Grant Thornton and now aperture. My mortgage and loan work out to be more than the 85% of what the property is worth therefore from what I have read and the paperwork I have there is no equity to release.
Yesterday I receive a letter saying there is £11000 equity to be released therefore my term has been extended for another 12 months!
I boiled my head needless to say I rang and left a message asking for them to phone me back and also an email asking how they had come to this calculation.
And this what they have come back with.
Mortgage plus loan plus £5000
= £131306.97
Value of property
= £145000
Difference
= £13693.03
85% of this = £11575.33
This is completely different and it is a 100% of my property that is being used. Please can someone advise

[petercar]

hi every one not been on there for a while but getting near to the worrying 54month just got the paperwork today got to get a valuation done wife is now worried and a bit tearful with the process thinking we will have to sell
just wondering if one of u guys could give idea what would happen a spoke to someone a few months ago he said u house is safe but because u have so much equity with recent gains they could ask for 24 months extra payment instead of 12 months
guess on next doors value
house value 215 ,000
mortgage value 115000
equity value 100000
iva debt about 40,000
joint income before deductions 30,000

[kallis3]

Hi,

You won't have to sell your house. I doubt they will ask for 2 years - we had load of equity as well and just had to do the extra twelve months.

[winter_blues]

Mont, I had similar situation when I sent valuation and letter to I.P showing I had very little equity based on 85% LTV they replied showing a different calculation and the one you illustrated. 85% of your interest in the property.

Check your original proposal. I argued that they were wrong and in the end it went to the creditors for their interpretation but none of them both bothered to reply. The I.P was then for forced to concede. Hope it works out for you as you have little equity and should not be made to payanother 12 months. Keep us posted.

[Foggy]

Peter, they are bound by the terms of the arrangement, which is likely to say that, if unable to remortgage, the arrangement will be extended by 12 months. Check your paperwork.

[Lisa Thomas]

Hi Peter

Based on your equity figures the 12 month clause will probably kick in.