I have an IVA that so far i have made 42 monthly payments on , I have paid £11,991 to date and have 18 months left with a balance of £6,507 remaining. My property is on shared equity ( I own 75% and the builder 25% ), there is equity in my property (19,503) but the builders loan is £23,000 in value so i would be unable to raise another mortgage at month 52 to cover this and pay any equity to the builder. my mum has offered to gift me the money to pay off the IVA but i wanted to know what wold be a reasonable amount to offer to my creditors in these circumstances as my IVA company will not provide a figure and said it is up to me to go to them with the proposal
Calculate 18 months plus 12 months for equity X monthly payments,then offer slightly less.
So say your payments are £200 a month = £6000 try an offer of £5500
Good luck
Today 1st of December 2016 the vultures finally flew away
So, your payments appear to be around £285, with, including an equity year, 30 payments to go --- your creditors are expecting around £8850, assuming you would even trigger the extension. On that I would say an offer in the region of £7,500 to £8,000 might do the trick.
If you don't trigger the extension they would be looking at getting around £5130, so an offer around £4,000 - £4,500 might suffice.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
My current payments are £351 per month as these have increased over the last 18 months due to salary increases and promotion at work. My iva company have advised if i only had 18 months to run i currently owe £6,507, if the extra 12 month extension comes in then it would total £10,902. given the lack of equity in my property based on 85% LTV value it is bordeline if it will extend at present but may do if it increases in value. would £8,500 as a cash offer be a good starting ground ?
If you labour the point that equity is borderline as things stand you would appear, by increasing the base offer (based on no equity), to be allowing the creditors to hedge their bets and get the best of both worlds, so, I would say that, worded correctly, £8,500 would be well worth their consideration.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I have been told what documentation to prepare , should i also write a covering letter with the information relating to LTV and the equity remaining in my property to demonstrate this ? - my IVA company started to argue the other day that i have more than enough equity to extend for the further year m despite this being 18 months away and i had to explain re the builders share (which of course they already have the paperwork for ) - they then started to base their phone conversation on looking at 100% of trying to remortgage but i was under the impression this is worked out at 85%?? - apologies it is all very confusing to me and i am trying to get the right offer amount worked out for them to present to the creditors as this is my parents money and not mine
It seems a fair offer but personally I would try £6,500 first as that is all that is remaining without equity. If creditors reject you can always go back with an increased offer so potentially you save your mum a couple of thousand pounds.
Hi Michael.
The value of my property is approx £97,500, £23,000 of that is the builders loan leaving £74,500 that is in my name. I owe £58,008 on my mortgage. Any equity in my property I also owe 25% to my builder so only £12,000 is in reality my equity.
From what i understand any remortgage would be based on 85% of the value so £82,875 as of todays date - 23k owed to builder would leave £1,867 in my name based n 85% LTV - Is this the correct way of doing the calculation ???
And looking at these figures what would you advise as the FFS amount to offer ???
as you said it is money that is my parents and not mine but i want to be fair to all involved including my parents
I agree with your figures Sarah and as such you are below the £5,000 threshold for an extension. This could change between now and month 54 but probably not significantly so I think £6,500 is plenty. If you have a current valuation and mortgage redemption figure to show your IP this will strengthen your case as I am sure they already know about the builder's share.
Hi Michael
Many thanks for your advice, my mortgage balance statement is on its way and i have valuation report (along with last 4 properties sold in the same apartment block via land registry) - I will give it a go and see what happens
Just make sure that the company knows that the money is only available for a full and final and also that any payments in the meantime are taken off the final amount.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks Kallis - we are putting that in the letter , my current mortgage statement will only be valid until 31/10/2016 - would this be the appropriate date to put that the offer will be valid until (all paperwork will be sent over to them by 01/10/2016 at the latest ) or should i give them longer
That date is absolutely fine as any changes will be minor anyway. Some firms can be slow in proposing variations even when they have all the information so if there is going to be a delay then reduce the offer accordingly. However if your IP calls the variation in line with the terms and conditions the variation should be drafted within 21 days of your written request. Allowing for the notice to creditors and it is likely you will have to make this month's and next month's payments.
