I really appreciate your feedback and time...
Please find below the details from my equity clause in my contract...
1.19 For the purposes of my proposal, I have included an amount representing 85% of my current interest in the
In month 54 of my arrangement, (normally 6 months from the end of the arrangement) an open market valuation
will be carried out on the property by an independent professional valuer.
If that valuation shows that 85% of my interest in the property (after deducting my share of the mortgage and/or
secured loans referred to above) is less than £5,000 (net of all costs to take out a new mortgage) then I need
contribute no more to the arrangement in respect of the property.
If that valuation shows that 85% of my interest in the value of the property (after deducting my share of the
mortgage and/or secured loans referred to above) is £5,000 or more (net of all costs to take out a new mortgage
loan), then I will seek to remortgage my interest in the property and introduce this money into the arrangement.
However, the amount that I have to borrow and pay into the arrangement is subject to the following limits:
· The remortgage amount will be a maximum of 85% of my loan to value (LTV).
· The incremental cost of the remortgage, including cost of any new repayment vehicle, will not exceed 50%
of the monthly contribution at the review date.
· The net worth released will not exceed 100p in the £ excluding statutory interest.
· The remortgage term does not extend beyond the later of my State retirement age or the existing mortgage
· The amount of the money introduced into the arrangement will be the mortgage proceeds less the costs of
the remortgage, including any costs to redeem any existing mortgage and/or secured loan.
· The increased amount that I have to pay because of the remortgage will be deducted from the remaining
monthly contributions in the arrangement.
· If the increased amount that I have to pay at any time following the remortgage means that the required
contribution to the arrangement falls below £50 per month, monthly contributions are stopped, and the IVA is
I will provide a broker or prospective lender with my written consent authorising them to keep my Supervisor
fully informed of progress throughout the re-mortgage process.
If I am unable to obtain a new mortgage, this will not be viewed as a failure to comply with the terms of the IVA
and my Supervisor will have the discretion to consider accepting one of the following alternative proposals:
· A third party sum equivalent to 85% of my interest in the property, or
· 12 additional monthly contributions (with the aggregate sum paid to the supervisor being limited to 85% of
my interest in the property).
Protecting creditors interests
(where applicable) To protect the interests of creditors my Supervisor will register a restriction against the
property at HM Land Registry. To facilitate this, I will provide the Supervisor with a signed form RX1 within 3
months of the approval of the IVA.
So how do you interpret the above to how they have calculated the equity Foggy?
thank you so much again.....