Month 54

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cbdawg

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Joined: Sun Jun 11, 2017 6:46 pm

Post by cbdawg » Mon Feb 08, 2021 10:12 am
Hi All
I am due to hit month 54 next month.

About 4 months ago creditfix called me and said they had done a valuation and that i needed to extend my payments for a year, I am shared ownership so the other options aren't open to me.

I asked them to send me evidence of the valuations so I could also go and get some independent ones done as I didn't believe their prices.

Ive heard nothing.

I want to get ahead of the game so when they do call or more than likely i chase them at the end of the month I have relevant information to prove that they are right or aren't.

Any advice on what I should do would be much appreciated.

Foggy

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Post by Foggy » Mon Feb 08, 2021 10:22 am
I assume that you are attempting to prove that you are under the £5k trigger. So ignore what CF have done and challenge anyway. You will need a few valuations from things like estate agents listings, Rightmove etc. or one from a qualified valuer (which you will have to pay for). You will also need your current settlement figure from your lender.

Then look in your proposal to see if they stipulate the method of calculation --- as you will know from recent posts here, there are different methods emerging ! I would use the 'traditional' method in the hopes that your IP will accept it off the bat.
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

cbdawg

Posts: 49
Joined: Sun Jun 11, 2017 6:46 pm

Post by cbdawg » Mon Feb 08, 2021 10:37 am
Hi Foggy

Yes I am, although I am not sure I will be but I am not going to just roll over and accept what they say as they are been off with their assumptions and calculations the whole time.

I mean it would be bloody lovely to have the next 12 months of no payments, saving that and being able to then buy by house outright when all this is wiped. pipe dreams :D

Does anyone have any experience with shared ownership and the equity calculations?

Foggy

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Post by Foggy » Mon Feb 08, 2021 3:06 pm
Examples of the 'traditional' method of calculating equity is contained in annex 6 or 7 of the Protocol and is basically:
85% of property value less outstanding mortgage = equity (method A)


However, some IP's have recently used a different method:
(Property value Less outstanding mortgage) x 85% = equity value (method B)

So, for example a property worth 160k with mortgage of 130k:

A) 160,000 x 85% = 136,000 less 130,000 = £6000

B) 160,000 less 130,000 = 30,000 x 85% = £25,500

As you can see, the 'new' method gets them more !!
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
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