Full and final settlements

[Newneg789]

Hi guys,

Can I ask for opinions please. I’m submitting a ffs with the plan of selling my house and raising the funds from the house sale. I am offering the remaining payments and the further 12 months.

I have been offered a great job and need to move to accept it.

Basically I have a share ownership property and the value of the house to buy 100% and release equity is too high and I wouldn’t be able to release equity any way when the Iva comes to an end.

So I can get a mortgage to move to a cheaper area but have to have a 30% deposit. This is doable and I have been cleared for the mortgage. I am then offering nearly 15k to settle.

Do you think this sounds like a sensible offer?

Has anyone else done or tried similar.

[Newneg789]

I forgot to add. If I can’t accept the new job I will have to stay where I am and then the IVA would have to run it’s course. Due to lenders insisting on the 30% minimum deposit as I can’t go to the high street for a mortgage. So the creditors won’t really loose out, they’ll merely get all of their payments now and a couple extra plus the 12 months extension.

[Foggy]

I have seen similar arrangements accepted, but it will depend on the way it is presented to creditors --- so getting your IP on side is a good idea.

[Newneg789]

Brilliant - many thanks for the reply. I will give the IP a call tomorrow. Fortunately I am with McCambridge Duffy and they are very nice to deal with.

[Foggy]

Brilliant - many thanks for the reply. I will give the IP a call tomorrow. Fortunately I am with McCambridge Duffy and they are very nice to deal with.

Yes, McCD have always had a good reputation for being sympathetic and helpful. Best of luck with the offer.

[Newneg789]

Thanks Foggy. IP is on board and supportive of my offer and keen to get it agreed - fingers crossed now.

[luluj]

Sounds like a very sensible approach that sees all parties positively gain from it. Hope you keep in touch and let us know how it goes

[Newneg789]

Morning everyone-

I have had my offer accepted and house is about to exchange and move to our new house.

Just wonder if I could ask advise or if anyone has had a similar experience. As part of the mortgage conditions the IVA will be paid from equity as part of the sale transaction.

The condition reads

“Solicitor to confirm Iva is settled prior to the funds being released going” how is this supposed to happen when one needs the mortgage funds to buy the house. and the sale all happens in one go.

Are they just asking for confirmation from the solicitor that it will be paid do you think? IE solicitor could easily confirm funds available and transfer will be made etc.

Just a bit confused. Thanks in advance.

I have asked mortgage broker for confirmation.

[Breezy]

Congratulations !

Usually these things are dealt with by an 'undertaking' between the professionals involved ---- an undertaking is a binding promise that funds would be retained from the sale and transferred to the IP. In return the IP undertakes to use the funds to close the IVA.

[Newneg789]

Congratulations !

Usually these things are dealt with by an 'undertaking' between the professionals involved ---- an undertaking is a binding promise that funds would be retained from the sale and transferred to the IP. In return the IP undertakes to use the funds to close the IVA.

Thank you - the problem here is the IVA company forgot to put a restriction on the property and the solicitors have said this is a possible issue because the Iva company technically have no claim on the house and therefore they say they shouldn’t really act on their behalf..

What do you think is the best approach?

[Breezy]

I would argue that the solicitors, whilst not acting on behalf of the IVA provider, are acting on behalf of the mortgage lender, who require such an undertaking.

[Newneg789]

Brilliant- thanks for the advise. I will email him now.

[Newneg789]

Hi there,

Can I ask another question. Is the undertaking confirmation from the solicitor normally enough for the mortgage lender to be happy to release funds so the Iva can then be paid simultaneously as part for the transaction?

Just a bit worried

Thanks

[Breezy]

Undertakings between professionals are usually taken as "Deed done", even if the deed will take a while to actually carry out. They are not so pertinent these days with all the electronic transfers, etc. used now, but should still carry the same weight.

[Newneg789]

Thanks for taking the time to reply. Really appreciate it.