We are having a nightmare with the equity release

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Lynny
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by Lynny » Fri Apr 13, 2018 12:22 pm
Hi, We are in month 57 of an iva and are having a nightmare with the equity release with aperture formerly Grant Thornton. Due to an error they had not progressed the equity release process I contacted them and emailed only to be told it will be a further 6 weeks. This will take us near our 59 th payment. Their calculations for the equity release seem incorrect to me. They calculate
House value 170000 minus 136000 mortgage minus 3.5% meaning we have a lot of equity. I calculate it with the ltv meaning we have approx 7000 so no more payments !. They’ve also said it’s not 5000 each de minimus but me and my partner have signed separate Iva’s stating 5000 each. Totally confused I am.
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Foggy
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by Foggy » Fri Apr 13, 2018 12:30 pm
Lynny wrote:
Hi, We are in month 57 of an iva and are having a nightmare with the equity release with aperture formerly Grant Thornton. Due to an error they had not progressed the equity release process I contacted them and emailed only to be told it will be a further 6 weeks. This will take us near our 59 th payment. Their calculations for the equity release seem incorrect to me. They calculate
House value 170000 minus 136000 mortgage minus 3.5% meaning we have a lot of equity. I calculate it with the ltv meaning we have approx 7000 so no more payments !. They’ve also said it’s not 5000 each de minimus but me and my partner have signed separate Iva’s stating 5000 each. Totally confused I am.


A few months ago Aperture were consistently using what I think was the wrong method of calculating equity -- the one they seem to be using here. However, in the laoks several forum users have mentioned them using the generally accepted method (that contained in the standard terms and conditions at annex 6) --- I thought they had seen the error of their ways, but it seems more likely that different members of staff are using different methods !

Again, a view shared across the industry is the fact that the individual arrangements should be given £5k trigger each, based on each debtors share of equity .... but Aperture always seem to deviate from the norm here.
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Lisa Thomas
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by Lisa Thomas » Fri Apr 13, 2018 1:44 pm
where does the 3.5% deduction come from?

What do your proposals, modifications and equity calculation example show about the calculation and the LTV etc?
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Foggy
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by Foggy » Fri Apr 13, 2018 2:50 pm
Lisa Thomas wrote:
where does the 3.5% deduction come from?

What do your proposals, modifications and equity calculation example show about the calculation and the LTV etc?


I believe they allow this to cover fees.
Lynny
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by Lynny » Fri Apr 13, 2018 5:20 pm
Hi thanks for the replies. They take the 3.5 % for remortgage fees. My calculations based on their valuation from Zoopla of 170000. Our property it’s 164000. My calcs are

Valuation 170000
Ltv 85% 144500
Mortgage 136329
Equity 8071

Based on the 164000 equity would be 3071. I’ve emailed them but I’m not holding out much hope.

I’ve looked at the agreements and mine and my other half’s that we’ve signed separately has a 5000 de minimus.

Any advice how to escalate would be appreciated.
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Foggy
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by Foggy » Fri Apr 13, 2018 6:25 pm
Zoopla is notoriously inaccurate, based on an average of different house type sales in a given region and taking no account of the fact that your house, with all due respect, has had minimal, if any, maintenance over the last half a decade. Check the exact wording on your paperwork ... most will say that you agree to provide the valuations .. it is, in that case, not their place to be consulting the likes of Zoopla.

To escalate the query I would suggest contact to the IP direct, by email and recorded delivery (snail mail) ... look him up here for his contact details: https://www.gov.uk/find-an-insolvency-practitioner
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kallis3
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by kallis3 » Fri Apr 13, 2018 6:34 pm
I agree - get a local agent out for a valuation - online ones are not good!
Lynny
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by Lynny » Sat Apr 14, 2018 11:00 pm
Hi foggy, I’m hoping you can help! Our Iva should be underthe 2013 protocol that advises that the equity calculation is in annex 7. I can find it in annex 6 as you advise but only in the 2014 version. Do you know where I can find 7? Thanks
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Foggy
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by Foggy » Sun Apr 15, 2018 7:50 am
Lynny wrote:
Hi foggy, I’m hoping you can help! Our Iva should be underthe 2013 protocol that advises that the equity calculation is in annex 7. I can find it in annex 6 as you advise but only in the 2014 version. Do you know where I can find 7? Thanks


I only have a copy of the 2014 Protocol to hand, but, I believe that the content of the 2013 annex 7 is the same as the later annex 6 . I will do some digging, but hopefully someone else will have a copy and can beat me to it.
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Lisa Thomas
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by Lisa Thomas » Mon Apr 16, 2018 8:29 am
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