Equity release - Please Help

ubalou

Hi

Just starting my 4th year of IVA 53k - 80p in the pound !!! - due to my company failing and like a dimwit not realising i was personally responsible for overdraft and loans etc,,,
My Admin has asked for valuations on property to asses equity release.
Main problem is that equity is only around 85% of value so no one will touch a re-mortage
What happens now ? also i am informed that at current levels of payment i will still owe 14 k at the end of year 5 ( around 30k if i can;t re-mortage and release equity !
I am at my wits end ! i dont want to lose my house ! my IVA is my IVA taken before i married, but if i lose my house i will lose my wife !!! who has just been told she has MS.......Great things get better.

Help please thank you

Charco_2

If your mortgage is already 85% of the value of the house then you have no equity to release! NO bank or lender will risk more than 85%

ubalou

Thanks charco

I know that no one will touch me just wondering what happens now ???

As i cant offer any money from equity does that mean i will fail the IVA and then go bankrupt and have my house sold ?

Any help greatly appreciated

Charco_2

No no, far from it... according to what you're saying, you have no equity!

What should happen is your IVA would be closed successfully with your last normal monthly contribution. You have no realisable releasable equity in your property and so you have nothing more to offer your creditors.

Worst case scenario (depending on the figures) is you could end up having to extend your IVA by 12 payments if the IP calculates that there IS a small amount of equity available.

*a 12 month extension is far better for you than having to remortgage (but obviously not as good as simply ending the IVA). You make the extra payments and then you don't have remortgage and take on more secured debt and pay high interest on the whole amount etc

ubalou

Charco, that's exactly what i wanted to hear..your a star thank you for taking the time and trouble to reply.

Charco_2

ONE caveate would be to check your IVA Proposal!

Your IVA is now four years old. Most modern IVAs would exclued your property altogether now because of the 85% rule. Some older IVAs might include a modification stating that the equity will be released by remortgage or sale. It's not very common but it's worth checking the paperwork if you have it...

It's most likely that you'll be able to extend if you need to though!

ubalou

Thank you, i will check it thoroughly, regards