OK. So you are in negative equity now. Add to this the usual requirement to limit the equity release to 85% LTV, there will need to be a substantial increase in property values over the next 2 years to give you enough equity to trigger a release clause.
I would ask them to put forward a F&F settlement offer of the £10k, explaining that your employment is about to end, and, in the current climate, it will be difficult to get re-employed very quickly. Also get your IP to do the math on your equity to see exactly how much increase in value you would need to see before the creditors would be entitled to a release. Then put it to the creditors that, on balance, it is very unlikley that there will be that sort of increase in the next 5 years, let alone 2, due to the current economic climate, which is forcast to last at least until 2015.
It will depend upon how persuasive (and enthusiastic to assist) your IP is. But in the long term, the creditors are very unlikely to see any equity or extension, so they might as well draw a line underneath the whole saga now, and walk away with the £10, rather than getting £12k, spread over 2 years.
Last edited by
Foggy on Fri Sep 30, 2011 12:43 pm, edited 1 time in total.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
