I believe the property you don't live in will, possibly, be treated differently,being a pure asset rather than a home. But, assuming they are treated the same way and assuming Payplan still use the old interpretation of the release clauses (and you have the usual clauses):
House 1) 85% of market value = £114750. Less mortgage leaves £6250 in negative equity.
House 2) 85% = £76500. Less mortgage and loan leaves £3000 positive equity -- not enough to trigger the release provisions
It could be the case that the 'pure asset' property does not get the 85% ceiling.
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
In the letter they sent they did say they used the 85% rule. But no mention my second property was based on asset only. I am awaiting for the equity review case to see how they have come up with there calculations and decision making.