My IVA was set up in August 2010. The first payment was October 2010. The last payment Month 60 was due in September 2015.
The payment schedule was: 30 months @ £316 plus 30 months @ £483 (when HP on car finished). Total = £23970.
During the five year period I took payment breaks of nine months, therefore the period was extended to June 2016.
In May 2016 we sent a property valuation to them of £94000 (from memory), plus two online valuations which estimated a lower figure of £91000; and average of £107000,. They chose to use the average and calculated my share of equity to be £8764.20. The property is in a very run down state having had no money spent on it for 10 years. It would not realise £107000 even now.
If they had used the realistic valuation of £94000, my share of the equity would have been £3665 which is less than £5000 and so the IVA should have completed at that point.
To September 2017 I have paid £26030
My question is can they rely on an average online valuation without a proper valuation of the property? They have continued to extend and are now pursuing me for £5000 in arrears.
The IVA was first with Debt Lifeboat, was taken over by Harrington Brooks which in turn has now been taken over by Freeman Jones. In February 2018 I had lengthy telephone conversations with HB who after reviewing the above facts agreed that the IVA was completed and were supposed to be arrange the certificate and discharge. Unfortunately I don't have anything in writing to that effect and no certificate has materialised.
Apologies for lengthy email and thanks for any advice.
What they take as the valuation depends, in part, to the exact wording of your equity release clauses. However, in the grand scheme of things, a real valuation by inspection trumps an online valuation in any definition of reasonableness. That horse, in this case, has bolted, but I would still argue with FJ that the valuation was suspect. For anyone reading approaching this hurdle -- if the resulting figures are as close as this example, it is well worth paying a £100 or so for a professional valuation --- it could save you 12 months of payments. Some firms will even pay for the valuation ( I know McCambridge Duffy have done so before).
Anyway .... I am afraid that you need the same conversation with Freeman Jones. Hopefully the handler at HB recorded the call.
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