4th year valuation

kns_2

I am due to get my house valued to see if there is any equity in the property for my IVA.

Who do i get todo this do i just call an estate agent or can i get a valuation on the web?

Thanks in advance

Charco_2

A drive by valuation would be fine... are there any other similar houses in your street that are up for sale?

You're not looking to spend money on this unless your IP says you have to (in which case let him pay for it or reduce your monthly contribution accordingly). As long as there is something you can back up th valuation with then it should be ok. (remember, you personally looking for a low valuation! Realistic but LOW!)

And then when you have the valuation use the 85% rule to calculate the equity!

kns_2

whats the 85% rule please ?

Charco_2

It depends on your IVA but...

Most IVAs stipulate that the client (you) will not be forced to sell their home. So you should only be required to release equity from the home by
1. Remortgage
2. Secured Loan
3. Friend or Family member

When remortgaging your home (at the best of times - which now certainly isn't worldwide recession, you in an IVA) a bank will only lend you up to 85% of the value of your home (this is actually a lot less now but there ye go)... so realistically you could only be expected to release up 85% of the value of your home.

So (keeping it simple) your home is worth £1oo,ooo. Your current mortgage is £77,ooo... on paper you might think you have £23,ooo of equity to release to your IVA for the benefit of your creditors.

However since no-one will lend you more than 85% of the value of your home, at best you might have £8,ooo of realisable equity.
Realistically I doubt you would even be able to release this!

Depending on how much equity is available you may not have to remortgage anyway. For smaller amounts you could try to rustle up a lump sum or simply extend your IVA by 12 months (which is a lot cheaper in the long run!)

Remember if there is NO EQUITY then you will not have to address anything and your IVA will simply end in month 60 successfully.