Equity calculations with Aperture

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jane181

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Post by jane181 » Wed Oct 17, 2018 3:11 pm
Hi there I am coming to the end of my 5 year IVA with Aperture my final payment due 1st November. I have the 6 year equity release clause so provided valuation and redemption figures back in July. I haven't heard anything back from this so called today to be told as I do have equity my case has been passed to Select to source a secured loan. I haven't received any confirmation of how this has been worked out but have been told today the figures Aperture are working on. please advise if this is correct as the other forums I have looked at and my original agreement with Grant Thornton show a different methods of calculation to what Aperture are using. Property valuation 180k mortgage left 147k and property is in joint names with only me on IVA. They say I need to pay back 11,300 or an extra year of payments. Is this correct? I really cant face the thought of an extra year! Please Help.

kallis3

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Post by kallis3 » Wed Oct 17, 2018 3:30 pm
Check your paperwork - if you don't have to take one you don't have to. If you do take it you will have debt for longer than an extra 12 months.
http://kallis3.blogs.iva.co.uk/
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The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Foggy

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Post by Foggy » Wed Oct 17, 2018 3:40 pm
Aperture do have their own way of interpreting the clauses and calculating the equity. However I was under the impression that Select did it the generaly accepted way.

The method generally used would be:

Market value - £180,000 x 85% = £153,000 Less mortgage o/s of £147,000 = £6,000 equity

Aperture do it this way (or at least have done in the past) :

Market value - £180,000 Less mortgage o/s of £147,000 = £33,000 x 85% = £28,500

So, I am at a loss as to where they came up with £11,300 ... unless you are a joint owner so my answers above would be halved and they have deducted usual fees and costs (which would be about right -- albeit using the "wrong" interpretation). Or -- it could simply be the amount from the total equity they require, rather than the actual calculated equity.

If you are a joint owner the first method would mean the equity release is moot and can be ignored and, if this is the method in the original agreement thhen this is the method they have to use.

Ask them to confirm, in detail, their calculations.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/

jane181

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Post by jane181 » Wed Oct 17, 2018 4:09 pm
Hi Foggy

Thank you fro your response. Yes the property is in joint names and only me in the iva. I also worked it out to be 3k worth of equity so under the 5k equity clause. I have asked for their calculations to be confirmed in writing. Wish me luck!

Foggy

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Post by Foggy » Wed Oct 17, 2018 5:38 pm
jane181 wrote:
Hi Foggy

Thank you fro your response. Yes the property is in joint names and only me in the iva. I also worked it out to be 3k worth of equity so under the 5k equity clause. I have asked for their calculations to be confirmed in writing. Wish me luck!
I do indeed ! Please let us know how you get on.

Best of luck.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/

kallis3

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Post by kallis3 » Wed Oct 17, 2018 8:14 pm
Good luck from me as well/.
http://kallis3.blogs.iva.co.uk/
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.

Lisa Thomas

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Post by Lisa Thomas » Thu Oct 18, 2018 9:48 am
Good luck
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

jane181

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Post by jane181 » Fri Oct 19, 2018 8:42 am
Hi thank you all for your help to date. This morning I have received an email with the method of calculations on how they have estimated I owe £11333 for my share of equity release. This is correct they stated and has been checked at senior level. I took my Iva under 2012 protocol and working out the equity on the example provided I work it out to be £3000 equity. Please advise me what steps I should take next to dispute this, surely they cannot change a legal contract in such a way to suit themselves? I would be really interested to hear if you have had any experience of people disputing this previously and how it concluded. Thanks Jane

Lisa Thomas

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Post by Lisa Thomas » Fri Oct 19, 2018 9:13 am
Can you give us the calculations they have used please.
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

Foggy

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Post by Foggy » Fri Oct 19, 2018 9:30 am
Aperture are beyond reprehensible in using their own, novel, interpretations of the equity release clauses !

I admit that the clauses can be read their way, but, as they well know, that was not the intention when they were (albeit badly) drafted. In any event I believe, for the avoidance of such doubt, your proposal embeds the actual calculation to be used, either by an annexed example or by reference to annexe 7 --- THAT is the method they must use.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/

jane181

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Post by jane181 » Fri Oct 19, 2018 10:02 am
Hi this is their method of calculations

Valuation £180,000
Less mortgage £147,023
Less selling costs 3.5% £6300
Equity available £26,676
Less partner share £13,388
Available equity £13,338
Less 15% £2000
85% of client interest £11,337

Clearly different to the method used when I took out the IVA with Grant Thornton.
What should I do next ?

Foggy

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Post by Foggy » Fri Oct 19, 2018 10:58 am
jane181 wrote:
Hi this is their method of calculations

Valuation £180,000
Less mortgage £147,023
Less selling costs 3.5% £6300
Equity available £26,676
Less partner share £13,388
Available equity £13,338
Less 15% £2000
85% of client interest £11,337

Clearly different to the method used when I took out the IVA with Grant Thornton.
What should I do next ?
As I said before -- challenge them and insist that they use the method embedded in your agreement.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/

Lisa Thomas

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Post by Lisa Thomas » Fri Oct 19, 2018 11:45 am
I agree with Foggy both you and creditors agreed to the formula used in your proposals. Challenge this with them.

Worst case scenario it may even be worth instructing solicitors to fight this to save you the extra year of payments. Hopefully that won't be necessary.
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

jane181

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Post by jane181 » Fri Oct 19, 2018 11:53 am
I have called back to explain that I’m not happy with their method of calculations and they guy on the phone seemed to agree me that the original method should be used. The file has now been passed on to a manager for an equity review appeal. My final 5 year payment should be 1st November, it’s horrible to not know what is going on. Fingers crossed for some good news.

kallis3

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Post by kallis3 » Fri Oct 19, 2018 2:37 pm
Hope you get a good result.
http://kallis3.blogs.iva.co.uk/
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
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