Mortgage redemption

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MrMeC

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Post by MrMeC » Fri May 22, 2020 1:30 am
Hi,
I've now reached the point in my iva where the IP are asking for a mortgage redemption. Looking at my options there's 2 differing types, an illustrative redemption or a Final Redemption Statement.

The email from my IP doesn't specifically say, so does it matter which I send them, is there a better option between the two?

Also regarding valuing my house, it states:
This can usually be carried out online.
Sometimes a local surveyor may need to be instructed to visit your property but you’d be told about this beforehand.

Carried out online, does that mean Zoopla's estimate or something similar?

Do I have the option to get an actual agent valuation if my IP state they've got their valuation online? My concern is Zoopla's estimate is just that & it seems a bit on the high side (and also hasn't changed since February).

Any help appreciated

luluj

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Post by luluj » Fri May 22, 2020 5:20 am
You can approach a couple of local estate agents and ask them to provide you with a valuation for quick sale - up to you if you tell them why you need it, or pretend you are thinking of moving ...
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Foggy

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Post by Foggy » Fri May 22, 2020 8:51 am
Online valuations are notoriously innaccurate and are based on the sales, in a very large region, of all house types. Most of these sales will have been of property that has been maintained and staged for profit -- as high a price as possible. YOUR property has probably been minimally maintained for the past 5 years and you want as low a valuation as possible !!

This could all be moot if your equity, as you see it, is well over £5,000. It is really only worth fretting if you think you can get the equity below £5,000 and, therefore, avoid triggering the equity release clause entirely.
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MrMeC

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Post by MrMeC » Fri May 22, 2020 9:09 am
Thanks for the responses!

The £5k equity is going to be close - if they take the online valuation then it'll be another 12 months, but as I've said that valuation seems overly optimistic, it's like they took the last house sale in my post code and used that! All previous sales were like £10k less. Even £5k less than online valuation & there's no equity.

i think an actual valuation is definitely required, then there's no argument from either side.

Do i state to the agent that's it's a forced sale or simply just ask for a valuation? Again the email from IP doesn't state

Regards

Foggy

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Post by Foggy » Fri May 22, 2020 10:06 am
Do not say it is a forced sale -- the valuation has to be at open market value. Just mention that you would be looking at a quick sale.
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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MrMeC

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Post by MrMeC » Fri May 22, 2020 10:18 am
I think agents are now doing house valuations but I'll hold off booking one as the IP hasn't asked me for a valuation yet.

I'll get the redemption sorted and sent.

Thanks again foggy!

Foggy

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Post by Foggy » Fri May 22, 2020 11:33 am
Fri May 22, 2020 10:18 amMrMeC wrote:
I think agents are now doing house valuations but I'll hold off booking one as the IP hasn't asked me for a valuation yet.

I'll get the redemption sorted and sent.

Thanks again foggy!
With the current situation and impending recession house values should fall for a while -- so you want your valuation after the fall, not before it !
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
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