Im having a couple of niggles and would like some advice. Firstly I have in April done my 5th review. Payments were set and increased by £30. I paid first two and they are now saying they want the original payments from 1st yr as last year they used a 15% reduction and it only lasts one year. This reduction was because I was struggling as all my bills had risen, petrol etc son gone to high school needs proper uniform and no allowances had increased in previous 3 yrs (my fault i find reviews very stressful ) my bills havent changed much this yr a couple slightly cheaper
A meagre pay rise last yr hence the increase. But they are not happy with the amount and want more even though the review came in less. Can I ask for another review? It dosent help that its different people making decisions every time I contact.
Secondly, I have had payment breaks totalling 6 months. So, i actually have 16 months left of the 5 yrs and they have sent 2 letters about releasing equity and to send in redemption statements and that they will value house now. Is this timing correct? Do I pay the missing 6 months after 6yrs if equity is released or extra payments.
Lastly in my IVA documentation it states I am to get independent valuation of property and they have said they will use partners to do so. Can I insist on me getting valuations.
They have been ok to deal with until this last couple of months but it is now really getting to me and I ferl they are trying to squeeze blood out of a stone. I know I have equity in my property so shall have to try to release some but think it should be done in a fair manner
Normally the up to 15% discretionary reduction is not repayable, nor is it usually time limited. I would ask them to point out, specifically, what in the Standard terms and conditions is guiding them.
The payment breaks are repayable regardless of equity release, being part of the original term.
Yes, the agreement says you are to get the valuation from an independent source. However, it has to be a bona fide source. I would argue that their 'tame' valuer might not be seen as independent. But, don't go off on a crusade too early. Their valuation might be OK. They might ask for more than one valuation and would then be expected to take the mid-line figure. Some IP's do use their own sources which, as long as the source is not biased, can make things easier for you ---- check their figures with your own research (local estate agents, Rightmove, Zoopla ) before challenging them.
The usual timing for equity release is around month 54, although many are later for various reasons.
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