Hi I'm with payplan and they have stated I need to pay an extra 12 months due to having equity but I'm not sure I do and I wonder if you can confirm if I do or not as I don't believe I do.
1st house
House value £135,000
Mortgage. £121,000
2nd house
House value. £90,000
Mortgage. £65500
Secured loan £8000
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
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.
