Possible issue after equity release clause

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kingsh

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Post by kingsh » Thu Mar 29, 2018 8:52 pm
Hi all, not sure if anyone can help but...

Basically, last year my Iva was due to end subject to equity release clause. Anyhow, the mortgage is joint but the ex, as per divorce 7 yrs ago, is not entitlement to the equity or any thing regarding the house upon £50 per Month for 6 yrs (at time of divorce the equity was negative and I couldn’t remortgage due to Iva BUT if I could then both parties would be liable to pay half the negative equity etc) and therefore the equity is all mine pending remortgaging at the end of Iva. I provided the house valuation and outstanding mortgage to the Iva company and I had £50k equity.

I couldn’t remortgage at the end of Iva for obvious reasons and I also enquired about the amount I would pay back IF I could remortgage as I technically have 100% equity (like explained above regarding divorce) even though the mortgage was still joint with the ex , as per divorce agreement. However, The Iva company still did their calculations based on 50% share which I didn’t really notice or pay attention to at the time and paid for further 12 months.

12 months later and after paying the further 12 months based on the equity release clause, the Iva company are tidying up loose ends before my completion and noticed this conversation I had last year with them about the divorce and having 100% share, and not 50% as originally calculated. Slightly annoyed as it’s now going to a supervisor who may address this with my creditors.

Realistically what can they do because I argued if it’s either 50% or 100% then I would still be bound to the release clause of 12 months. And I still can’t remortgage now anyhow as the Iva is not completed. I am not going in for a 9th year and will argue this point above.

Confused.

Any advice. There may be some details missing but the most of it is there.

Foggy

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Post by Foggy » Thu Mar 29, 2018 9:49 pm
I would agree with you -- stick to your guns. The percentage of equity is irrelevent as you only have the 12 month extension regardless.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
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kingsh

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Post by kingsh » Fri Mar 30, 2018 8:13 pm
Thank you for the reply.

But I think they will blame me for the 50% share calculation instead of the 100%. As I didn’t pay attention to their initial calculations for the equity release and stating staying in for 12 months. TBH I thought it wasn’t a big deal if 50% or 100% as it was not possible to release it anyway. What do you reckon they will try and do? The supervisor or the creditors that is?

Foggy

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Post by Foggy » Sat Mar 31, 2018 9:06 am
All the initial calculation is for is to see if you have more or less than the £5k to trigger the clause (or not). THEY then decided on a 12 month extension as opposed to a release and they had already been made aware of the situation -- you are not hiding anything.
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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kingsh

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Post by kingsh » Sat Mar 31, 2018 2:49 pm
Thank you. I will also tell them that the initial calculations is to work wether or not I am bound to the release equity clause 12 months extension irrelevant how much over £5k

kingsh

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Post by kingsh » Sat Mar 31, 2018 10:43 pm
Can they make me do another year or pay a little lump sum??

Foggy

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Post by Foggy » Sun Apr 01, 2018 11:01 am
kingsh wrote:
Can they make me do another year or pay a little lump sum??
They can add another year in lieu of equity release --- you can pay this as a lump sum as a full and final offer from third party funds.
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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kingsh

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Post by kingsh » Sun Apr 01, 2018 9:59 pm
gr8! That would be 9 yrs in this poxy thing!

What are the chances of them doing this?

Foggy

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Post by Foggy » Mon Apr 02, 2018 9:06 am
kingsh wrote:
gr8! That would be 9 yrs in this poxy thing!

What are the chances of them doing this?

Sorry -- I wasn't clear --- they can add 12 months in lieu of equity release ( as per the agreed terms) ... which they already have done. They should not have the authority to add a further 12 months, although, depending on what else they might try to suggest, it might be offered as an option.

As I see it they should just complete the arrangement and go away.
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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kingsh

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Post by kingsh » Mon Apr 02, 2018 10:42 am
Ah ok. Thank you. Hopefully they will.

I have never missed payments and always sent pay slips. May work in my favour being generally a good boy. Lol

kingsh

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Post by kingsh » Tue Apr 03, 2018 7:54 pm
Good news. See reply from IVA company

I have spoken with your Supervisor this morning and he has agreed to allow your arrangement to complete. Although there was an after-acquired asset which hadn't been addressed as such, they are happy that the outcome would have still lead to the 12 month extension in lieu of equity, which you have already completed.

Therefore, I have ticked your case through to the Completion Process for you. As part of this process you will receive a PPI Agreement Letter. This is to state you're happy to pay in any future PPI claims into your IVA. It is your choice as to whether you sign and return this document. If you don't then we're unable to complete your IVA until your Supervisor is fully satisfied that all PPI claims have been investigated. Unfortunately we're not able to put a timescale on how long this may take.

If you do sign and return the document the completion process can take up to 3 months but we will send the Completion Letter to you as soon as we're able to.

Thank you and we wish you all the best in the future.

Foggy

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Post by Foggy » Tue Apr 03, 2018 8:04 pm
Great news! Well done :-)
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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kallis3

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Post by kallis3 » Wed Apr 04, 2018 7:30 am
Excellent news!
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Post by Ryan » Wed Apr 04, 2018 8:33 am
Great news.
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