Do I have equity?

Get expert opinion. This is the place for new questions to be posted.
7 posts Page 1 of 1

mal189

User avatar
Posts: 9
Joined: Thu Feb 27, 2020 7:53 pm

Post by mal189 » Thu Feb 27, 2020 7:53 pm
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

Many thanks

Mal

Foggy

User avatar
Forum Expert
Posts: 31265
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Thu Feb 27, 2020 9:03 pm
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

mal189

User avatar
Posts: 9
Joined: Thu Feb 27, 2020 7:53 pm

Post by mal189 » Fri Feb 28, 2020 2:13 pm
Thanks foggy

That's the calculations I came up with as well.

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.

Cheers again

Mal

Lisa Thomas

User avatar
Industry Expert
Posts: 7759
Joined: Wed Dec 03, 2014 10:26 am

Post by Lisa Thomas » Tue Mar 03, 2020 4:21 pm
Are they solely owned by you?
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

mal189

User avatar
Posts: 9
Joined: Thu Feb 27, 2020 7:53 pm

Post by mal189 » Tue Mar 03, 2020 9:42 pm
Hi Lisa

Yes they are

Lisa Thomas

User avatar
Industry Expert
Posts: 7759
Joined: Wed Dec 03, 2014 10:26 am

Post by Lisa Thomas » Wed Mar 04, 2020 12:32 pm
Follow Foggy's advice and figures and challenge them.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

mal189

User avatar
Posts: 9
Joined: Thu Feb 27, 2020 7:53 pm

Post by mal189 » Wed Mar 04, 2020 12:47 pm
Hi Lisa

Thank you I have done and sent an email payplan I'm just waiting for a reply...

Hopefully it goes my way. If they refuse to move I'll need yours and foggy's help!

Thanks

Mal
7 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”