www.iva.co.uk

Hi,

After providing my current redemption statement to my IVA around a month a go they've now come back with the below email...

"The estimated amount of equity in your property is more than £5,000 so you need to apply for a re-mortgage or secured loan with a lender of your choice".

The whole email seemed odd - first of all they've not asked me to get a valuation of my house, so they're using an online valuation.
They also sent a draft email on what I should send to the lender where I'm asking for a remortgage - there's no house valuation against the workings of the equity, they've got my current house lender incorrect, it all seems a bit rushed, so I've called them.
The lady advised that their valuation is based on an online estimation and seemed surprised I was asking if I could get my own valuation - Why don't you agree with the ESTIMATED valuation were her words. I mentioned that I can't agree to it because no one has actually been to my house to value it.
She said the IVa can get Legal & General to arrange a viewing, I asked can't I get my own valuation done (as well) and she stated no it's got to be Legal & General. Where has this rule come from? Never heard of this before?
Surely I'm within my rights to get my house valued by whoever I want?
I'm just suspicious now that they're organizing this with Legal & General, what if they give an overly high estimate?

Where do I stand in getting my own valuation and then comparing to whatever Legal & General state?

If both valuations are similar then there's no argument.

Any help appreciated.

You are perfectly entitled to get your own valuations to challenge theirs. I would also ask them for a detailed breakdown of their own calculation.

An online valuation is, at best, a guess and is, as you say, not based on YOUR property (which hasn't been maintained for 5 years) and is based on sales of properties over a large geographical area which have all been staged for resale.

I am not aware of any obligation for you to use their named valuer. Forced into using a nominated firm calls into question the independence of such a valuation. In most cases IPs would not rely on a single valuation, but would require you to present 2 or 3 for comparison - and would probably accept a mid line figure ---- so, 'What is good for the goose .....'

I do not know what version IVA terms yours was drafted under, but Annex 6 to the Standard terms under the 2016 Protocol stae: " In month x of my arrangement, (normally 6 months from the end of the arrangement) an open market valuation will be carried out on the property by an independent professional valuer. ....."

Thanks foggy! That all makes sense.

I started my IVA beginning of 2016 but would have to check which version of terms I'm on.

I'm going to book in some valuations and go from there.

The email just came across a bit unprofessional, are they just trying to see if I'd go along with the equity release knowing they've basing it off an estimated valuation. Then seem to question why I don't agree with that estimate.

Maybe the coronavrius is effecting their monies and they're getting a bit twitchy

Also have a read here: https://debtcamel.co.uk/coronavirus-new ... ty_release

Very interesting, thanks again foggy, I'll have a proper read of that.

I assume these extra terms covering the coronavirus get applied to any iva, or would that be up the particular IP?

These covid variations apply to Protocol IVAs and it is intended by the regulatory bodies, as I understand it, that they be applied by all IPs using Protocol terms, not cherry picked.

So glad I didn't just go along with IPs original email stating there was £5k equity in property based on an online valuation

Had an actual valuation done (by whoever SC deal with) and IP has confirmed there's less than the £5K, and therefore ends on 5th year!

There was a 10K difference between online & actual.

I probably won't be so happy when it comes to selling it at that price though

I'll still take that as a win though

Great news on the equity release front --- and well worth the challenge ! Well done !