5th year what happens

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cbdawg

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Post by cbdawg » Wed Jun 03, 2020 1:58 pm
Hi all

I'm just coming up to the start of the 5th year. I'm just waiting on my review.

Could anyone shed some light on what happens within this year? Especially with regards to when they do equity release stuff?

Foggy

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Post by Foggy » Wed Jun 03, 2020 2:25 pm
Equity release is usually done around month 54 -- although, of late, some firms have been leaving it until the very end ... so keep an eye on them and remind them nearer the time -- you need to know where the IVA is going sooner, rather than later !

First will be a valuation exercise to see if there is enough equity to trigger the clause. If there is more than £5k equity you will need to attempt to release equity. If unable to do so the IVA will be extended by 12 months.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

cbdawg

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Post by cbdawg » Thu Jun 04, 2020 1:56 pm
Hi foggy.

Thanks, what do they normally asked for with valuation?

I'm shared ownership so I know it's going to ge a tricky one, and they may try to pull a fast one so I want to be prepared.

Foggy

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Post by Foggy » Thu Jun 04, 2020 3:13 pm
Thu Jun 04, 2020 1:56 pmcbdawg wrote:
Hi foggy.

Thanks, what do they normally asked for with valuation?

I'm shared ownership so I know it's going to ge a tricky one, and they may try to pull a fast one so I want to be prepared.
They will want a current valuation of the property -- they may do this themselves online -- and a mortgage redemption statement. Shared ownership properties are often impossible to remortgage as the other owner (usually a housing association) will not permit re-financing. If this is the case they don't need bother with valuations etc as a remortgage os off the table anyway and should go straight to 12 month extension. I believe ( can never get this one to stick in my head) that CF sometimes use Select Finance to deal with this (who are far easier to deal with and know their stuff!).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

cbdawg

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Joined: Sun Jun 11, 2017 6:46 pm

Post by cbdawg » Fri Jun 05, 2020 4:29 pm
Thanks.

I find that so wrong that they may automatically just apply the 12 month extension.

I agree that I probably wont be able to remortgage but if theres no equity then it should stop there rather than just applying the 12 month. I'll have to see what March brings.

Foggy

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Post by Foggy » Fri Jun 05, 2020 4:52 pm
Fri Jun 05, 2020 4:29 pmcbdawg wrote:
Thanks.

I find that so wrong that they may automatically just apply the 12 month extension.

I agree that I probably wont be able to remortgage but if theres no equity then it should stop there rather than just applying the 12 month. I'll have to see what March brings.
I apologise --- having re-read my reply, it didn't hit the page in the same way as it left my head!
What I meant was that, in the light that a remortgage would not be possible due to co-ownership with an H.A, they should assume the extension without the need to jump through the applications and refusals for loans --- of course, a valuation would be needed to see if the clauses would be triggered in the first place.

If there is no equity ( less than £5000) the release clauses are not triggered at all and the IVA stops at the end of the 5th year (assuming an intitial 5 year term). If there is equity ( over £5000) and it cannot be released, then the 12 month extension applies. These are the terms you agreed to at the outset, there is no automatic application of the extension outside of the terms agreed.

Spending the last 10 weeks alone, in isolation, with a 13 year old aspie and home schooling is beginning to dull my thinking !!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

cbdawg

Posts: 47
Joined: Sun Jun 11, 2017 6:46 pm

Post by cbdawg » Thu Jun 11, 2020 7:46 am
Phew, that was my thinking so glad it's not just me. I'm excited to enter the 5th year.

Dont worry this lockdown is taking its toll on so many people. I too am alone working away in my kitchen and it makes your mind wonder some.
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