Full and Final Offer

[n434937]

Hi everyone,

I have a additional property equity clause to extend the IVA for another 12 month if the equity amount at 85% is £5,000 or more. As part of my offer, I had obtained an estate agents valuation, market values on Zoopla and the mortgage redemption statement. I calculated the 85% property equity to be just over £3,200.

Would the IP untilise this information when making a decision or would they do other searches etc?

Many thanks in advance for your response/s.

J.

[Foggy]

Some firms use their own associated brokers to investigate equity and a few use a unique method of equity calculation, due to bad drafting of the relevant clauses in the standard terms. So ... they might well re-calculate and 'find' enough equity to trigger the clause.
Many 'reasonable' IP's will accept your findings, as long as they have no doubts as to veracity (and they are not one of those referred to above).

[n434937]

Thanks Foggy. Stepchange are manging my IVA.

I have around £2,800 outstanding and have offered £2,800 to end the IVA whilst providing clear rationales for ending the IVA early . . . . so I've got everything crossed.

Thanks again.

[Foggy]

I have to say that we have very little complaint on forum regarding the way StepChange deal with equity release, so hopefully it will all go smoothly for you.

[n434937]

Thank you Foggy. For me . . . Stepchange have been fantastic and fair in my dealings with them thus far, here's hoping that continues moving forward

[n434937]

If the IP adds on another 12 months @ £91 per month £1091. What do you think would be a fair and acceptable offer? Currently, I am proposing £2600 which equates to the full value to the current end date.

[Foggy]

So, you have just over two years to go ? If so, a little early to be looking at equity. For the purposes of a F&F when a property is involved, it is customary to assume the extension ( your c£3k could become c£5k in the next 18 months or so). So your creditors would be assuming collecting a further figure of around £3700 by the end date.
Usually, to reflect 3 years time and admin saved, along with the 'bird in the hand' principle, you can round the figure down a little --- but ( there is always a 'but') a monthkly payment of £91 is almost as low as it can be to keep an IVA viable, so your wriggle room is diminished. Added to which the creditors will be stung £300 - £500 for the required variation meeting.
So, all in all, you need to stick pretty close to the projected return ... maybe £3500. You might tip it at £3,000, but it would be more of a gamble. Low offers do get accepted, but high ones have been refused as well (Not helpful, I know!).

[n434937]

Hi Foggy, thanks for this. Based on this, looks like the IP will refuse my proposal. If I proposed to continue to pay the monthly payments until july and also offer the full and final payment, do you think this is possible and worth the IP's consideration? Many thanks for your advice.

[Lisa Thomas]

Any variation proposal will be up to your creditors, not your IP.

[Foggy]

As Lisa says, it is up to your creditors, not your IP, to decide. All you need do is put your best offer forward.

[n434937]

Thanks. I've just spoke to my IVA case handler, they have stated that they wouldn't be looking to extend the IVA period by 12 months as there is no equity (now or in the foreseeable future) at 85% .

I just need to send them an email to get the variation meeting preparation in motion.

Thanks for your help.

[Foggy]

Good to hear that they are taking a sensible approach.

Best of luck.