Iva help please

A question about : Iva help please

Hi, could anybody help me please, i entered into my iva in 2011, im coming up to month 54 . this is what ive copyed from my paperwork 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 Ј5,000 (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 Ј5,000 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 Ј 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 Ј50 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

im not very good understanding things like this can somebody help please, either by braking it down in simple terms for me to understand better or perhaps can somebody whos good with sums let me know if it looks likely i will have to remortgage? ive done a quick zoopla valuation on my house and it says Ј58000. if somebody can do this you are going to need figures?? what figures will you need. thanks in advance my head is all over the place very confused.

Best answers:

• Call your lender and ask them what they think your property is worth, they will of index linked it as part of the mortgage.
  How much do you owe on your mortgage at the moment?
• Hi, I owe 39500 on mortgage, am I right in thinking this is how it is, house valued at 58000, so that would mean 18500 equity, it is a joint mortgage so my share of the equity would be 9250, so because its over the 5000 point I will have to remortgage?? Thanks in advance
• I don't understand the 85% bit ??
• House value x 85% LTV (which is how lenders generally calculate) is Ј49,300. Less the mortgage, and then divided by two, is Ј4,900 each. Tight, but crucially under Ј5k. This assumes no arrears, and good credit (which you won't have).
  That would be the argument I would use if I were you, but there are lies, damn lies and statistics, and I am also aware that different I.P's would interpret it differently. Either way, whilst you may have to fulfill your half of the bargain and attempt to re-mortgage, I can't see any lender wanting your business, so the adds are firmly stacked in favour of an extra year I would have thought.
  Let us know how you get on.
• It's worth asking an estate agent for a valuation as Zoopla is pretty inaccurate. When I reached month 54 Zoopla valued my house at Ј80k but my neighbour's house at Ј70k (exact same house - reverse of a semi!). Meanwhile there was another identical house 2 doors down for sale at Ј65k. I got an estate agent to valued it and it came in at Ј69k - not good for my equity but perfect for finishing the IVA without having to extend.
• When you have it valued make sure you tell them its based on a falsed sale.