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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31768
Experience:  Over 5 years in practice
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Dear Sirs,I have a query re my IVA agreement. My situation

Customer Question

Dear Sirs, I have a query re my IVA agreement. My situation and understanding Full value of property 175,000 – Confirmed by Independent Professional Valuer 85% of the value of the property 148,750 Less: Amount owed to mortgagee (156,401.89) Total available equity for purposes of IVA (7,651.89) therefore no further payment to be made. My share of the above is 50% with the other 50% belonging to my wife. I understand that this calculation is correct to the protocol of IVA. Meaning ,that I have no further payment to make following completion of the agreed 60 monthly payments as set out in my agreement Is the above correct? Below is an extract from my agreement re equity. Regards, ***** ***** from signed IVA agreement with PayPlan 1.7 For the purposes of my proposal, I have included an amount representing 85% of my current interest in the property .In month 54 of my arrangement, (normally 6 months from the end of the arrangement) an open market valuation will be carried out on the property by an independent professional valuer. If that valuation shows that 85% of my interest in the property (after deducting my share of the mortgage and/or secured loans referred to above) is less than £5,000 (net of all costs to take out a new mortgage) then I need contribute no more to the arrangement in respect of the property. If that valuation shows that 85% of my interest in the value of the property (after deducting my share of the mortgage and/or secured loans referred to above) is £5,000 or more (net of all costs to take out a new mortgage loan), then I will seek to remortgage my interest in the property and introduce this money into the arrangement. However, the amount that I have to borrow and pay into the arrangement is subject to the following limits: • The remortgage amount will be a maximum of 85% of my loan to value (LTV). • The incremental cost of the remortgage, including cost of any new repayment vehicle, will not exceed 50% of the monthly contribution at the review date. • The net worth released will not exceed 100p in the £ excluding statutory interest. • The remortgage term does not extend beyond the later of my State retirement age or the existing mortgage term. • The amount of the money introduced into the arrangement will be the mortgage proceeds less the costs of the remortgage, including any costs to redeem any existing mortgage and/or secured loan. • The increased amount that I have to pay because of the remortgage will be deducted from the remaining monthly contributions in the arrangement. • If the increased amount that I have to pay at any time following the remortgage means that the required contribution to the arrangement falls below £50 per month, monthly contributions are stopped, and the IVA is concluded. I will provide a broker or prospective lender with my written consent authorising them to keep my Supervisor fully informed of progress throughout the re-mortgage process. If I am unable to obtain a new mortgage, this will not be viewed as a failure to comply with the terms of the IVA and my Supervisor will have the discretion to consider accepting one of the following alternative proposals: • A third party sum equivalent to 85% of my interest in the property, or • 12 additional monthly contributions (with the aggregate sum paid to the supervisor being limited to 85% of my interest in the property).

Submitted: 2 years ago.
Category: Law
Expert:  Nicola-mod replied 2 years ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 2 years ago.
I'm ok to wait
Expert:  Nicola-mod replied 2 years ago.
Hello,
We will continue to look for a Professional to assist you.
Thank you for your patience,
Nicola
Expert:  Nicola-mod replied 2 years ago.
Hello,
I apologise as we have not yet been able to find a Professional to assist you. Do you wish for me to continue to search for someone to assist you or would you like for us to close your question at this time?
Thank you for your patience,
Nicola
Customer: replied 2 years ago.
If you close the question, I will expect a refund