IVA 6th Year

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Shane.37
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by Shane.37 » Tue Jan 09, 2018 5:50 pm
Hi, hopefully someone can advise. I have been advised (6 months ago) that our joint 5 year IVA for the 6th year we would need to make the addition payments as we were unable to remortgage. Reading the below I understood that from January 2018 for myself and April 2018 for my wife we would need to make 12 additional payments as stated below (which is 50% of our current IVA payments). However I am now being advised that they are extending the arrangement by 12 months at the same amount I have been paying over the last 12 months. I'm lost for words as thought the goal post was in sight.
Can someone advise if this is correct, as I understood that the additional years add on could not be more than 50% of the original payments?

The amount you would have had to re-mortgage for would have been £17,947.37 (£8,973.09 each) as this would have taken you over your original debt level, I then requested your 100% debt plus our charges from the accounts department the accounts department have confirmed the figures are for Hannah £3,656.83 and for yourself £1,344.20 total of £5,001.03, which would be 100% debt plus our charges, excluding statutory interest.
I am unable to provide you with the breakdown at the moment, however I have requested this from the accounts department, as soon as I receive this I will email this over to you.

If you are unable to re-mortgage then 12 additional payments at £220.06 for Hannah and £208.83 would be added to your IVA. The 12 additional payments in lieu of the equity, if you are unable to re-mortgage would start after your last planned payment, which would be April 2018 for Hannah and January 2018 for yourself.
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Foggy
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by Foggy » Tue Jan 09, 2018 6:05 pm
I am afraid the extension year is at the usual monthly rate --- the 50% is the limit on the repayment figure for repaying a remortgage (which would be for the term of your current mortgage), not the extension (which is for 12 months).
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Shane.37
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by Shane.37 » Tue Jan 09, 2018 6:41 pm
Foggy wrote:
I am afraid the extension year is at the usual monthly rate --- the 50% is the limit on the repayment figure for repaying a remortgage (which would be for the term of your current mortgage), not the extension (which is for 12 months).


Thanks Foggy, however can you advise what the below means then?

If you are unable to re-mortgage then 12 additional payments at £220.06 for Hannah and £208.83 would be added to your IVA. The 12 additional payments in lieu of the equity, if you are unable to re-mortgage would start after your last planned payment, which would be April 2018 for Hannah and January 2018 for yourself.
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Foggy
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by Foggy » Tue Jan 09, 2018 7:04 pm
It means that your IVA will continue until January 2019 at £208.83 per month and Hannah's until April 2019 at £220.06 and there will be no need to raise equity.

The payment amounts seem to have been arrived at so that you end up paying 100% of the debt plus fees and are, presumably, less than your normal repayment amounts.
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Lisa Thomas
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by Lisa Thomas » Wed Jan 10, 2018 12:42 pm
Have you clarified the equity in the property and whether the extension will actually apply?
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Foggy
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by Foggy » Wed Jan 10, 2018 12:58 pm
Lisa Thomas wrote:
Have you clarified the equity in the property and whether the extension will actually apply?



Equity was calculated at £17,947.37 (£8,973.09 each) ---- the amount repayable in the extensions seems to have been calculated to be the sum required to bring payments into the IVA up to 100% debt plus fees.
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