Overvalued house used for equity release

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Daisydoo

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Post by Daisydoo » Tue Jan 14, 2020 7:37 am
So stressed.

Just reached final few months, or what I thought of iva.
IP try the remortgage thing because they say I have equity in the house... surely not.. I’ve been skint paying this thing like forever my house is no way worth what they’ve said.
They’ve valued it at 108000 (and I don’t see any ltv%) it’s with more like 65-75000.
Mortgage redemption stands at approx 64500.
My hubby has an IVA too, same company, different account numbers not sure if they’re linked somehow. Joint mortgage. So my question is if we have more than £5000 in equity each do we pay the extra year or is it £5000 between us. So if the house was valued at the higher scale of what we think it’s worth around 75000 would that mean we would need to go into the extra year?
Tia for any help

Foggy

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Post by Foggy » Tue Jan 14, 2020 7:50 am
This is a vexing question. Some of the larger IVA providers claim that, in the case of interlocking IVA's, the £5000 trigger is split between you. Others will allow £5 k each. Some of these firms also use a novel method of calculation which, on the face of it, could be correct, but is not historically the method used. I am afraid we are at the mercy of interpretation here. Some IVA's still have the actual calculation method embedded in the agreement at annexe 5 or 6. Check your paperwork.

As for valuation, you could get your own. Which firm are you with ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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hil

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Post by hil » Tue Jan 14, 2020 8:05 am
My husband and I both have (what I believe) separate ivas, they have different account numbers. Joint mortgage. We’ve come to the end -or what I thought! We were due to end in March/April this year. Iva is from 2012. IP has way overvalued our house without sending anyone out at 108000. As you can imagine I’ve had no spare cash since then to carry out any work in the house. And a fully renovated neighbouring house sold for 97000 2 years ago. My house is in a mess compared to it.
Mortgage redemption is approximately 64000. IP have already tried to remortgage but didn’t succeed but have entered us into another year of payments.
Both mine and husbands proposals say if the equity exceeds £5000 then remortgage necessary (but can’t be done). So does this mean £10000 on top of the mortgage redemption or £5000? I’ve used a few free online valuation calculators and they come up at lower end market £58000 up to £120000. So the IP have used the higher end of the market for their valuation. I think the house is with about 70000 which may mean we wouldn’t reach the level of equity.. but that would depend on if it’s 5or 10 above the redemption. I have a breakdown of the valuation they used but just don’t understand the jargon. I’d be really grateful for any help on this please.

Daisydoo

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Post by Daisydoo » Tue Jan 14, 2020 8:07 am
It’s aperture
Thanks for your response
The wording is confusing. It’s states I as an individual, but if ‘the’ house has £5000 equity it’s to be realised.
Also the breakdown I seen to have looks different what I researched on here.
This is my reply
Please see the breakdown of the Valuation of your property,

Valuation of the Property

£ 108,000.00



Less Co-Ownership Scheme's Share of the Property



Less Mortgage Redemption

£ 65,683.00

Less Secured Loan 1



Less Secured Loan 2

£ -



Less Selling Costs (3.5%)

£ 3,780.00





Equity Available in the Property

£ 38,537.00

Less Partner's Share of the Property

£ 19,268.50





Client's Available Equity

£ 19,268.50



Less 15% that client is allowed to retain as per IVA terms

£ 2,890.28



85% of Client's Interest (Lump Figure)

£ 16,378.23



Shouldn’t they be using 85% of value from the start?

Thanks again

Foggy

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Post by Foggy » Tue Jan 14, 2020 9:08 am
Aperture are the main drivers of the inventive calculations. Whilst, due to bad drafting, the seperate clauses can be interpreted the way they have started doing, this was not the intention of the board who originally drew up the standardised agreement (which included Grant Thornton, who Aperture, basically, is but re-branded).

When Aperture started doing this, after years of doing it the way most others do, they did back down when challenged, but have since started standing their ground as being a technically plausible interpretation, if not morally.
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

Foggy

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Post by Foggy » Tue Jan 14, 2020 9:14 am
Topics merged.
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

Lisa Thomas

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Post by Lisa Thomas » Tue Jan 14, 2020 9:26 am
TLDR have you obtained your own valuation? This will be key to dispute your IP's valuation.
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

Daisydoo

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Post by Daisydoo » Tue Jan 14, 2020 9:32 am
I have someone coming to value next week. Will IP take lower end screenshots of online valuations? as the lowest I’ve got from there is 58000 but just online until I get someone out...
I’m confused to whether we need to have 5or 10 grands worth of equity... so sick just want it over. Thanx

Daisydoo

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Post by Daisydoo » Tue Jan 14, 2020 9:49 am
And if they’ve valued the house at 108000. Surely they should be trying to remortgage 91800 which is 85% it does say this in my original agreement.
First with money det and credit
Taken over by grant thornton then aperture Iva from 2012
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