4th Year Clause

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yecam
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by yecam » Thu Jan 14, 2010 9:43 pm
I am just entering the 4th year of my IVA and i have a 4th year clause,i owe £140k on my mortgage and my house is valued at £165k will i be forced to remortgage?

 

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Shining
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by Shining » Thu Jan 14, 2010 9:52 pm
Hi and welcome to the forum, if you have the 4th year equity clause then I would expect you will be required to get a valuation and try and remortgage if you have the equity, I do know in some cases if this isn't possible another 12 months premiums can be payable.

I am sure a professional will be along soon to advise as I'm not sure if you'll be forced to remortgage or whether you can offer another years payments?
Last edited by Shining on Thu Jan 14, 2010 9:54 pm, edited 1 time in total.

 

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orange
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by orange » Fri Jan 15, 2010 8:51 am
hy we recently had our house valued in the 4th year clause..our was less than expected...so we have gone for a final year...is the £165k valuation youve given an up tp date one ?

 

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MelanieGiles
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by MelanieGiles » Fri Jan 15, 2010 9:09 am
As you are already at 85% LTV I think this is doubtful, but check the terms of your own proposal to see what it says about this. You will not find a mortgage lender who will lend at more than 70% in any case, so perhaps this is all a little academic now in any case.

 

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orange
Posts: 1183
by orange » Fri Jan 15, 2010 9:23 am
why arnt all IPs as good has you melaine...we never know whats going on...has you know we have now gone for a final year due to no equity...and one of the creditors refused our of £25 increase in contibrutions....but would except £35 increase ...how crazy eh...anyway have said yes ..this was in november heard nothing !

 

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yecam
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by yecam » Fri Jan 15, 2010 12:47 pm
Thanks for all your replies,

Just 1 more question, if i cant get equity out of my property and as lesley said you can pay another 12 months, is this the final year of the 5years or another year added on th the 5 in affect making it 6years? (Hope that makes sense)

 

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kallis3
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by kallis3 » Fri Jan 15, 2010 1:14 pm
Hi,

It will be an extra 12 months if you can't release any equity, so will make it 6 years.
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