Equity / F&F Question

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jessi3498

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Post by jessi3498 » Thu Feb 13, 2020 8:43 am
Hi all

Currently coming up to Year 3 mark on my IVA. I am married but my partner is not on my IVA however we have a mortgaged property and this was naturally included in my plan ie potential equity to be introduced at the Yr 5 period.
I may be in a position to offer a F&F offer to my IP (Payplan) via my parents who could offer a lump sum (gift of course), questions:

1. Should the F&F offer reflect payments up to Year 5 or for the total period ie Year 6?

2. As this is will be an early settlement, will my IP request a house valuation to inform the creditors discussion when considering the submitted offer? Or are valuations only used for the the extended 12 months period?

Thanks in advance ....
Jess

Foggy

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Post by Foggy » Thu Feb 13, 2020 9:01 am
It is usual to include the 12 months in a F&F offer when a homeowner, unless you can demonstrate that there will be less that £5k equity and the clauses will not be triggered --- which will require a full blown valuation exercise.

IPs differ, but most will not go into valuations etc. if the 12 months is added.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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jessi3498

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Post by jessi3498 » Thu Feb 13, 2020 9:28 am
Thanks Foggy ...

When conmencing the plan my equity position was <5k however believe it will be greater - hence the drive to settle early in case (and I accept chances of success are minimal) that the equity release process is successful.

Is it worth, as a starting point, offering the F&F for the Yr 5 period. I suspect my IP will say ‘as much as possible’ etc - just wondered from experience within this forum there had been tactful ways to negotiate the F&F.

kallis3

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Post by kallis3 » Thu Feb 13, 2020 9:40 am
How much money would your parents give you? You would also have to stipulate that the money is only there for a full and final. and not available otherwise.
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.
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jessi3498

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Post by jessi3498 » Thu Feb 13, 2020 9:56 am
Hi

I’m approx 3 months away from Yr 3 so am basing the offer at the Yr 3 point to allow time for the offer to be submitted, variation meeting to be set etc.

Monthly payment is £690 and folks have muted 19000 - which obviously equates to the 24 months between years 3-5 and approx £2500 in addition as a temptation for creditors to reflect in losing the Yr 6/Equity funds.

I appreciate it’ll be a case of S&S (Submit & See!) - just after some wisdom to ascertain the best approach of the F&F being accepted without taking Year 6 or equity into the equation.

Lisa Thomas

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Post by Lisa Thomas » Thu Feb 13, 2020 9:59 am
You will want to establish the equity position first.

Ensure you ask any chargeholders for a redemption statement as this will include early settlement penalties and interest, reducing the amount of equity available.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

jessi3498

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Post by jessi3498 » Thu Feb 13, 2020 10:08 am
Thanks Lisa

I have that in hand and know the approx redemption figures including early exit penalties. I would estimate (although no valuation just in recent sale prices in my area) that my remortgage equity sum is approx £20k.

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Post by Foggy » Thu Feb 13, 2020 10:33 am
If you have 12 months at £690 -- they are looking at £16560 ... add in the extra 12 months, more like £24840.
There is room to negotiate as they will be saving 2 ( possibly 3 ) years of accepting and dealing with dividend distributions. I would say that an offer of £19,000 isn't too shabby.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

jessi3498

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Post by jessi3498 » Thu Feb 13, 2020 11:15 am
Thanks to all for have advised.

I think the main Q was if when submitting the offer, the IP or creditors will request a valuation to be obtained also and wondered if my situation had been evidenced before.

Again - thanks

Lisa Thomas

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Post by Lisa Thomas » Thu Feb 13, 2020 2:34 pm
Thu Feb 13, 2020 10:08 amjessi3498 wrote:
Thanks Lisa

I have that in hand and know the approx redemption figures including early exit penalties. I would estimate (although no valuation just in recent sale prices in my area) that my remortgage equity sum is approx £20k.
It's worth getting an estate agent round for a valuation just in case.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

kallis3

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Post by kallis3 » Thu Feb 13, 2020 3:13 pm
I had an estate agent round.
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
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