www.iva.co.uk

Hi All,

I'm looking for advice on how I should offer a F&F. I just want to make sure I word the letter correctly when writing to my IVA company.

My IVA ends in 2018, then has the clause of equity release based on 85% LTV but am certain the equity won't be released as I will be unable to remortgage. My IVA will then extend for another year so will officially end in 2019.

Any advice would be gratefully received.

Hannah

Hi,

You should state how much you are going to offer, where the money is coming from and that is only available for that offer.

You should also state why you want to make the offer (some companies like to know this)

Whoever is making the offer will also be required to let the IVA company know their details - money laundering.

I pasted a draft template recently on a post - I will try to find it and send you the link...

My F&F offer template draft is in here:

http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=78770

this is a great help, thank you both

Let us know how you get on.

That is useful Lisa thanks. I have just completed 2 years in my IVA and a family member is going to provide the funds for an offer for the remaining 3 years. Will creditors insist that I pay an extra year, even though my LTV is very small. Mortgage around £370,00 and estate agent valued my house at £380,000 yesterday. I have gathered all the necessary statements and will have prove of funds via family member bank statement. Just hopefully they will accept this

Hi SUC - what do your proposal say about your equitable interest calculation? Is there a standard £5k minimum? For example is it based on 85% or 85% LTV?

If you can prove the extra year will not kick in then offer for the lower sum, if not creditors might insist on the extra year being offered too.

If that the valuation shows that 85% of your interest in the value of the property(after deducting your share of the mortgage and/or secured loans referred to the above) is £5000 or more (net of all cost to take out a new mortgage loan) then you will seek to remortgage your interest in the property and introduce this money into the arrangement.
This is probably standard stuff but haven't a clue how this will be interpolated. I had a recent quick sale valuation done on house which would show I am in negative equity or latest valuation form agent
Would it help if I enclosed my recent valuations with F&F offer.

Yes - you need to show that the equity is below the minimum required for an extension and it does not therefore apply leaving x number of payments left against which you are making your offer.

Best of luck.

Lisa Thanks again so does that mean £5000? Thats the part Im struggling with

No the £5k relates to the equity in your home. A F&F offer should be based on what you would pay into the IVA if it continued in the normal way.

Multiply the number of payments you have left by your monthly £ and this will give you the starting point.

Do most creditors expect to get the 6th year in their calculations. I got a valuation also as a quick sale from Estate Agent which would show I have negative equity, or are most creditors just happy to get the debt cleared if paid the min amount as agreed X 60 months Just a bit concerned they will hand on for the extra 12 months which at moment could not raise

Ok, I submitted my offer to Creditfix and supplied them with an independent estate agent valuation of house showing very little equity around £5000 at most.
Creditfix, emailed me back saying they done an online valuation and value my house more and said they would expect at least another 12 months. Can they insist on this or am I being held to ransom as far as I am concerned I have abided by the terms of the IVA.

I would challenge them as online valuations are, at best, a guess. Then formal complaint. Also, what exactly does your equity clause say --- some say the debtor is to provide the valuations. If so, their valuation is inadmissible.