Extension and equity Confused why both

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Tab

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Post by Tab » Tue Jun 09, 2020 10:45 am
Just in to year 5 on my IVA and have received a letter regarding equity release, I had the usual clause in the original proposal however my IVA was extended for 12 months making it a 72 month Term when initially accepted because of a modification by one of my creditors wanting a minimum dividend of 25p. !
I was under the impression that that extension would be in place of the equity release as equity release is never guaranteed so the extension was a way of them getting the minimum.
I have no issue with the request for equity release but i thought the extension was instead of not as well as ? if you see what I mean ?
Any Thought /Advise gratefully received :)

Foggy

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Post by Foggy » Tue Jun 09, 2020 11:17 am
An initial extension is to the base term -- often used to increase a low dividend, and especially favoured by Northern Rock (NRAM) and this is seperate from an equity release extension --- one does not replace the other. Your base term was amended to 6 years and the extension, if applied, could make that a seven year term in all.
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

Tab

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Location: United Kingdom

Post by Tab » Tue Jun 09, 2020 11:48 am
Thanks Foggy , that makes sense . It was Rate Setter that wanted the extension.
Many Thanks for your help
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