Equity release iva

debnlee_2

Hi folks, can I firstly say I'm not very intelligent when it comes to things like this so please if you can help can you explain in simple terms 😔 .
I took out a iva 4 yrs ago and yesterday recieved the dreaded letter time to look at equity in my property. We have a joint mortgage but its my single iva. I think the house it worth roughly 100.000 so am I right in thinking that this is how it goes....
House value 100.000
85% of that is 85000
- 39500 (balance on mortgage)
= 45500( equity in property)
÷2 = 22750 my share of equity ??????
So I would have to try and remortgage for ????
Sorry I just don't get it !!!!!
Also I have to get a valuation on my house, I asked my case officer if this had to be by a estate agent or could it be a online valuation, they said they would prefer a estate agent valuation but if I couldn't get one they would consider a online one. I did a quick one today and the value came out considerably lower then a estate agents value would be so obviously this would be the better option for me. Could any of you advice about this, where to go, who to etc.
Thank you so much, the stress and worry is getting me and I just can't think

DorisTrousers

I have seen this debated both ways by different I.P's. The other way is £60,500 times 85% divided by two, which equals £25,712.

Not a massive difference, but as even I.P's seem to have different ways of viewing it then it would be wise for you to check the wording of your proposal/chairmans report first, and then speak to your IVA firm if needed.

You could always ask a couple of estate agents to give you a quick or forced sale valuation, which may reduce the equity they are looking at. Also bear in mind that a remortgage may be impossible anyway, at which point you just have a 12 month extension in lieu.

If your IVA is a protocol compliant one, and you can get a deal on the house, then the increase in payments can be no more than 50% of your current IVA payment, which would then go down by the equivalent amount. This may of course severely limit available equity anyway.