So...absolute top valuation would be 199000 (I don't think it will be this high, probably nearer 190k)
Mortgage and RX1............................166000
If I read it right the first 5k equity would be ignored and IVA closed down at month 60, so in this case we'd be fine. Also, as we both have an (interlocking) IVA would there need to be 5k equity per IVA? In one of the examples given by RSM when they drafted the documents it showed 5k each and I still have that document. It shouldnt be important I guess, but just in case...
Equity 33,000 x 85% = 28,050
You can see why they use this methof if they can get away with it !
If they try it, challenge them and refer to the examples which form part of your agreement.
OK, well that looks like a dodgy way of doing it! But Yes I can see how they could use that method to "create" equity.
Are they alone in doing this? It's been a while since I last checked in here but unless I've made errors the way I've described was the accepted way, wasn't it?
I'll submit the docs in the format I know and be prepared to challenge and produce the RSM docs that we signed up to.
Is there anything else I need to know?
Michelled0422 wrote:Hi. I am waiting for my completion certificate from Aperture formally GT and I submitted my valuations and mortgage redemption in December 2016 and early January they wrote to me using their favourable calculation and there was more than £5,000 equity. I dug out my paperwork and low and behold there was a calculation in 2012 documentation using the calculation in my favour. I rang them up, challange their calculation and just over an hour later, they rang me back agreed with my challange and the additional equity 12 months was not added. Using my favoured calculation I was in nil equity. Check your paperwork carefully and don't be afraid to challange especially if you were with GT initially. Good luck
Nice one !
Bradders wrote:I've got mtlyy paperwork out and not only is the wording clear and explicit with examples using my method, but there is also and Outline of Debtors Options document between RSM and myself in which they've given 2 specific examples of how the 85% LTV works, one using a static house price and one allowing for 4% increase per year in house prices. Thank you RSM...the email will be sent over this weekend!
That's good. To be fair I am guessing that the staff at GT / Aperture are merely applying their own, usual, criteria and are forgetting that many of their cases were acquired from other sources and, so, are drafted differently. They just need reminding now and again.
For anyone with equity release in their future it is vital to dig out those papers and learn your own conditions in this regard thoroughly, in case you, too, have to mount a challenge.
It seems therefore, that if I resolve the secure charge issue, they'll accept there is no equity, but lordy the waters get muddy on the phone
What they're saying now, is that one of the creditors put forward a modification which said "The equity should be dealt with in line with the PCIVA Guidelines and is only applicable if the equity is not realised within the first 12 months."
They say that means that they can use a calculation of house value less mortgage value/secure charge x 85% of the remainder, which will leave them with around 17k of equity.
Their view is that this means they disregard my IVA completely. I've asked for a meeting with my IP, they tell me it won't happen, so they're booking a call with the next level Supervisor.
I'd really appreciate some advice from an expert here.
How often is equity released in the first 12 months when it is only considered in the final year ????
I would be looking at lodging a formal complaint.
Got a phone call yesterday and went through my case, making absolutely sure that they realised that Annex 7 was the applicable document and that it referred specifically to my IVA. I followed up by email last night (and attached the secure charge document they needed) and by lunchtime today they'd emailed back to agree that I'm right and there's no available equity in the property! So...we got there in the end and I'm chuffed but at the same time, concerned that somebody else might receive their letter telling them they owe xx thousands and think it must be right so end up paying more money in an extended arrangement. Equally, the guy on the phone was insistent that I was completely wrong, to the point where it was obvious to me that he was trying to coerce me into saying I willingly agreed to their bogus calculation. I stood firm partly because I had read my IVA proposal thoroughly and I was confident, and partly because of advice from here, particularly Foggy, reassuring me that I was right and pointing me in the right direction. Cheers Foggy!
A bottle of bubbles is about to be consumed...we make it only 2.5 months of payments left
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