Hi my equity at the end of year 5 is over the £5000 mark but not much if I was to offer a lump sum as full and final would this be the total equity or just the portion over £5000
It will be based on 85% of your share of the equity and you will have to wait until they tell you how much to release, as there are other limits in play. It may well be that you would be unable to release the equity by way of remortgage or secured loan ( and , depending on your terms, a secured loan might not be applicable anyway) In which case you will get a 12 month extension ( which is likely to be a smaller sum in the long run ). Then you can offer a lump sum to cover the 12 payments.
In any event you have to now let the equity release exercise play out having got this far.
If you can argue that your share falls below the £5000 trigger the whole thing stops here and now. Being that close, as you think it might be, it is worth investigating.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thats what i was going to suggest Foggy!
If equity is really close on the £5000 mark, is it worth trying to look at calculations again and get equity below the £5000 and just end IVA! Depends how far off the figures actually are and how realistic the valuation of property is but worth a look.
