IVA with Aperture. Payment number 71 in 3 days so next payment, in my mind should be the last. At the end of year 5 I was told that I wouldn't get a mortgage and no chance of remortgage as was with Northern rock. Last Saturday I get letter asking about contacting The Select Partnership about equity release. Basically, The Select Partnership have spoken to Aperture who've stated via them that the equity clause is still applicable and if I can release equity through a remortgage then that's the way forward and Aperture will issue a refund for the offer payments made in year 6. This sounds like having 2 shots at the same target because you missed the 1st. Is this conventional and allowed? My agreement clearly states payments in to 6th year in lieu of any equity. Aperture have been useless throughout in terms of correspondence - I've got next to nothing in writing and you can't speak to them over the phone. This is becoming very stressful. I've got an initial remortgage interview on Monday with The Select Partnership to see about releasing equity. I really don't think this sounds right or fair. Thoughts please? What would the chances of getting a refund be if they can't even answer a phone? Yes we have equity and about the same as last year when I was told to carry on in to 6th year. I'm the sole IVA. We have a secured loan on the property. Help ---- please. Regards - Lee
Does your paperwork say you have to take out a secured loan?
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It seems -- from your other postings, that you "drifted" into this 6th year with no formal investigation into the equity release position and Aperture are at fault for allowing this to happen, for which you are entitled to formally complain and escalate this to their regulatory body if need be. A complaint will not directly help you, but the threat of a fine from their regulators might focus their thoughts a little.
Best scenario at the moment is that Select are unable to get a remortgage and the 6 years would have kicked in --- remember that they have to use valuations based at the time that they should have done this first time around -- so prices and redemtption figures from 18 months or so ago.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy - you're a star and yes that all makes sense to me. The lady at The Select Partnership was confused but impartial so couldn't professionally comment. As you say, best case is that I can't remortgage and yes I think I would put a complaint in. I'll speak with The Select Partnership on Monday but it's made my weekend a little more stressful than I'd have liked. Thanks again Foggy - Lee
An update after reading my original agreement with Debt Free Direct.
It said (roughly) ' no later than 6 months from the end of the term of the agreement a valuation on the property is to made to raise any equity that could be introduced to the iva' or weds to that effect. There's nothing in there about a secured loan. There is a bit about 'extension' for 1 period of 6 months and another for 3 months but conditions apply and there for failure to comply. There's another bit about extending the agreement with no warning for a creditors meeting about the agreement and payments to be made in until that creditors meeting, but again for failure to comply. To my knowledge I've never but complied. There was a discrepancy very early on as the monthly payment was set too high and was agreed to be lowered to the original creditors meeting about, but that was in year 1, nearly 6 years ago. One payment didn't go out of my bank in year 1 for some reason but that was rectified within 3 days. Other than that all is up to speed.
An update after reading my original agreement with Debt Free Direct.
It said (roughly) ' no later than 6 months from the end of the term of the agreement a valuation on the property is to made to raise any equity that could be introduced to the iva' or weds to that effect.That is the standard equity release clause which should have triggered the formal valuation and calculation. There's nothing in there about a secured loan. Secured loans were introduced in some IVAs agreed after 2014. Pre-2014 (or an arrangement using the old clauses after that date) do not require tyou to agree to a secured loan -- but, if they can find one Select often pass the details for information and consideration, as some people prefer that to the extension .... bit late in your case though!There is a bit about 'extension' for 1 period of 6 months and another for 3 months but conditions apply and there for failure to comply. This usually relates to extending the "admin period" between your final payment and the issue of a completion certificate There's another bit about extending the agreement with no warning for a creditors meeting about the agreement and payments to be made in until that creditors meeting, but again for failure to comply. This is if anything happens where they need to go back to creditors To my knowledge I've never but complied. There was a discrepancy very early on as the monthly payment was set too high and was agreed to be lowered to the original creditors meeting about, but that was in year 1, nearly 6 years ago. One payment didn't go out of my bank in year 1 for some reason but that was rectified within 3 days. Other than that all is up to speed.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi Foggy - so in short, do you agree with me that they're not complying to the rules of the original agreement? It clearly stated the term of the agreement is 60 months then the equity release element should be initiated 'no longer than 6 months before the end of the agreement' which they've more done 5 days before the 71st payment. As for seeing about potentially releasing equity then refunding my year 6 payments if I can remortgage is, I think a bit unfair.
Not black and white I am afraid .... No they did not comply with the equity release clause as specified -- but ..... it is your IVA, not theirs, YOU should have pushed it at the time, rather than drift into year 6 (rightly or wrongly, that will be their arguement).
The fact that, for whatever reason, it wasn't done means it has to be done now (better late than never -- it HAS to be done.)
Hopefully, Select will decide that you are unable to remortgage and the 6th year will already have been made, so no need to extend or refund.
Short and curlies, mate. You need to run with it for now.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I would argue that by accepting the additional payments there was an implied agreement that you were completing a sixth year in lieu of equity. This is a pretty standard legal principle in contract that if both parties are acting in a way that suggest an agreement exists then it can be implied that it does even if there is no written evidence, a rolling tenancy is a good example of this. This is one of my many pet hates about IVA's is that when you are in one you are at the mercy of arbitrary decisions from IP firms with very little recourse as you are hardly in the position to hire a team of solicitors.
I agree that it is grossly unfair that the debtor in an IVA is, basically, over a barrel with no recourse to mediation or resolution. In fact I raised a government petition, some time ago, for the introduction of a mediating body or the drawing in of IVA's practice and conduct under the umbrella of the ombudsman. Such is the tide of feeling on this subject I got, I think, 27 signatures !!!!! Head and brick wall springs to mind.
However on the subject of implied acceptance there is, to balance that particular arguement, the failure to carry out the equity release clause provisions by the debtor which, if pushed, could see the contract voided for non-compliance.
Short and curlies ... short and curlies .......
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks guys. It's not a nice position to be in to be honest at this late stage in the process. I did give Aperture all the house valuations, redemption values, incomes etc but they were very casual about it so I don't think it's me not trying to comply, more then trying to reclaim some time through potential mismanagement of their time frames??
I'll see what The Select Partnership say on Monday. I'm currently on a 75% interest only 25% repayment mortgage so my payments are relatively low compared to a 100% repayment mortgage but they suggested that remortgages may only be on repayment basis making any potential remortgage too expensive to achieve.
I thought this while prices was supposed to be run a lot tighter than this with them managing me not what appears to be, me at fault perhaps for not telling them what they want me to do?
Hi there. No as in the original agreement the term was for 60 months extended to 6th year if no equity can be released. The northern rock element, as I've found out this week relates to the ' together' mortgage I believe which I've not got
The more potentially expensive a remortgage is the better -- because the repayment you can make is limited to add only half the current IVA payment to your existing mortgage payment --- which often makes a remortgage impossible on repayment grounds.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi again Foggy. Absolutely mate. I'm paying £202 at the moment and with my part+part mortgage at £817/ month with 147k left and the secured loan at £237/month with 23k left it'll be difficult to remortgage with anyone as the house value is approx 260k. I read in my agreement (and I think I understood this right) is that the new remortgage can't extend past the end date of the original mortgage. This date is April 2025 but I do understand that if have to get another mortgage at this time but that is the original date with Northern rock. If that is correct I've got to borrow £170k plus up to 85% of my share of the equity in top and remortgage in 6 years? Does that sound about right in IVA language? Cheers Foggy
