HI Guys, So im worried now about my IVA, By the time mine is finished I will have 25k worth of interest in my house. it works out that I will have a ltv OF 84.48 % which is less than the 85 threshold. Will I be made to Remortage. . My Current Debt is 52 k My house has been valued @ 160k and I will have 135k left to pay. Help.....
It depends upon who you are with --- Aperture use an "inventive" interpretation of the standard clauses. And whether you have the standard clauses.
In most cases the method used will be ....
Market Value £160,000 x 85% = 136,000
Les outstanding mortgage of £135,000 = £1000 which is under the trigger threshold, so no remortgage or extension
Aperture choose to do it this way ....
Market Value £160,000 less outstanding mortgage of £135,000 = £25,000, which triggers the clause and they will be looking for 85% of this, so, £21,250.
This sum will be limited by the ceilings placed by the IVA (repayment and term limits detailed in your proposal) and the availability of a remortgage / secured charge (if your peoposal includes secured lending as a source).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Sharing from experiences of dealing with debt
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A slightly different thread but still relates to re-mortgaging.
Our situation is as follows:
I am currently at 5yrs and 5mths into my 6yr IVA.
I am in an IVA with Aperture (unfortunately). I am now coming towards the stage at which there is a need to release potential equity.
Property value £450k-£500k
Mortgage and secured loan £247k
Equity Release potentially available £200k (less than the mortgages due to be repaid therefore unavailable)
This looks simple but I am almost 66 and my partner is almost 77. Our ability to raise a mortgage will depend on my partner's final salary pension as I have a very variable income from self-employment, At 77, I cannot imagine that we could get a mortgage (nor do we want one) but I do understand that I will pay the extra year's IVA payments).
Its a complicated situation, but does anyone have a view if the Mortgage Broker that Aperture use will simply waive the obligation to remortage in the circumstances above as it seems so obvious that it won't work.
As an aside I hope to make a Full and Final offer from my sister of c.£6000 on the remaining balance of £8200. Does that sound about right?
Aperture usually use Select to investigate the equity situation who are faithful to the spirit of the terms and conditions and will seek to find the best solution. One of the ceilings usually imposed on equity release is that "the remortgage term does not extend beyond the later of the consumer's State Retirement Age or the existing mortgage or other secured lending term". With due respect, looking at your respective ages, state retirement age isn't far away for one and passed for the other. So, any loan to release equity must not go beyond the term of your current lending, which cannot be that long, I imagine. It will also be limited by affordability. So an extension might well be the outcome.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I dont think you should over worry about it at this stage.
When we entered iva we didnt think we had equity, then we didnt think it could be released.
We went through this a year ago, with Select and they were fab. Very pleased with their input and dealings with us.
House valued £160k
Mortgage remaining £75k so equity and lots of it.
They used the calculation:
85% of market value then deduct outstanding mortgage value. If more than £5k had to look at releasing.
But there are so many clauses the new payment has to meet and strict criteria and affordability that we released a very very small percentage of that equity. And Select even had the consideration of our income in the furure and didnt include all the child benefit that i currently get due to ages of children meaning it will stop during course of remortgage so it wasnt counted as income.
I honestly was very surprised as had initially envisaged losing £50k or something crazy due to equity available!
I dont think you can really judge at this stage what that figure will look like until you go through it but Select were great and to be honest we needed a debt plan and a way to get things sorted so the iva outweighed any other things that cropped up.
Thanks for all your input about my previous question in this thread.
I now realise that there could be an added complication after completion of the IVA.
We are 5yrs 11mths into our IVA. This runs for a 6yr term which was demanded by Amex (40% of creditors) to agree the IVA.
Aperture have been more than a little slow but are now (finally) checking documents to identify any realisable assets.
As requested we have been in contact with Select regarding re-mortgaging. They were charming to deal with and while they wouldn't commit totally, they agreed off-the-record that re-mortgaging £92k when self-employed and aged 66 would be well-nigh impossible. I expect that the creditors will ask for a further 6 or 12 months as there are no other realisable assets.
Financially our situation is as follows:
House value: £425k
Mortgage and secured loan: £241k
Net asset value therefore: £184k
Share of this asset (house is jointly owned) £92k
I am 66yrs old and my partner 78yrs. My partner is not part of the IVA.
The complication is that our primary mortgage of £200k runs out in April 2022. Unfortunately, where we live on the South Coast, the net £180k from sale of the existing house would hardly buy a large tent.
From guidance we have taken, we should however be able to do an Equity Release (though someone like Age Partnership) on the property before 2022 to generate the c.£220k (but no more) that will then be owing on both mortgages. This would allow us to stay in the house for the rest of our lives. This would be done after completion of the IVA.
Would this be allowed post-completion, and is there any ongoing obligation under the IVA - which will have completed more than a year previously - that prevents it? Also, would we even have to inform the Supervisor as this is after completion?
After you have had your completion certificate the IP will no longer be interested or need to be informed. The property will have been taken out of the equation by virtue of enacting the equity release provisions. The only ongoing asset of interest will be any PPI that is in the process of being claimed, or, possibly, any new 'refunds scandal' that surfaces that pre dates the end of the IVA.
So, in a nutshell --- equity release in a couple of years is possible and the former IP will not need to be involved. When you get the completion certificate ask your IP to confirm that the restriction on the title has been lifted ( they sometimes forget).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
