Full and final offer 5 years up sept

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Steeddie
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by Steeddie » Thu May 11, 2017 6:57 pm
Hi guys
My perents have offered to help me and I'm looking into requesting how much my IP would accept for a FF offer.
I am paying £380 a month now.

If anyone can offer any advice on how much I would have to offer For this to come to an end.
Also I owe arround £1200 arrears which I was just paying off until Jan

Any advice would be grateful because life is so hard at the moment and I need this off my back as soon as possible

Thanks in advance
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Foggy
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by Foggy » Thu May 11, 2017 7:13 pm
OK -- so I assume you have around 5 months to go, plus £1200 arrears ... so your creditors are expecting £3100 ---- I doubt they would forgive the arrears, so an offer of £3000 would be good ( they are not saving much on admin either).

However -- it takes a few months to arrange a variation to put a F&F through -- byt which time you will be almost there ( apart from the arrears ).. I would think about getting your parents to pay off the arrears in a lump sum so you can finish at the originally predicted end of this September.

This is all on the assumption that you do not own your home -- if you do then a further 12 months might have to be added, depending upon the aount of equity in the property.
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Steeddie
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by Steeddie » Thu May 11, 2017 7:28 pm
Thanks for your reply I do own my own home and it's worth arround 70000 and I owe on my mortgage arround 52000 :shock:
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Foggy
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by Foggy » Thu May 11, 2017 7:36 pm
Steeddie wrote:
Thanks for your reply I do own my own home and it's worth arround 70000 and I owe on my mortgage arround 52000 :shock:


Ah .... then the equity release clause will kick in and this should be being dealt with now. So, most likely you will get a 12 month extension, which will revise the figures somewhat as well as give a workable timescale.

So, with the extension, creditors would be looking at around 17 months @ £380 .... so ... £6460, plus the arrears ---- £7660 in total ... Maybe an offer in the region of £7000 would do it.
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Steeddie
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by Steeddie » Thu May 11, 2017 7:59 pm
Foggy wrote:
Steeddie wrote:
Thanks for your reply I do own my own home and it's worth arround 70000 and I owe on my mortgage arround 52000 :shock:


Ah .... then the equity release clause will kick in and this should be being dealt with now. So, most likely you will get a 12 month extension, which will revise the figures somewhat as well as give a workable timescale.

So, with the extension, creditors would be looking at around 17 months @ £380 .... so ... £6460, plus the arrears ---- £7660 in total ... Maybe an offer in the region of £7000 would do it.


Oh no I was hoping max 6000 I haven't heard anything about the remortgage from my IP
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Foggy
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by Foggy » Thu May 11, 2017 8:17 pm
You might get away with a smaller offer -- it is difficult to predict -- but, obviously, the lower the offer the lesser the chance.

The resposibility for investigating equity is yours, not your IP's and is laid out in your proposal -- I am afraid him not telling you is no defence, albeit he is being a bit slack.
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Steeddie
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by Steeddie » Thu May 11, 2017 8:37 pm
Foggy wrote:
You might get away with a smaller offer -- it is difficult to predict -- but, obviously, the lower the offer the lesser the chance.

The resposibility for investigating equity is yours, not your IP's and is laid out in your proposal -- I am afraid him not telling you is no defence, albeit he is being a bit slack.


Thanks for your advice
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Lisa Thomas
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by Lisa Thomas » Fri May 12, 2017 8:29 am
You will want/need to establish the equity position first so you can make your offer - i recommend getting a valuation.
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Michael Peoples
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by Michael Peoples » Fri May 12, 2017 12:32 pm
If the property values at less than about £67k then the home equity extension may not apply. This would reduce your offer substantially so a valuation seems a good idea.
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Steeddie
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by Steeddie » Fri May 12, 2017 1:00 pm
Michael Peoples wrote:
If the property values at less than about £67k then the home equity extension may not apply. This would reduce your offer substantially so a valuation seems a good idea.
Lisa Thomas wrote:
You will want/need to establish the equity position first so you can make your offer - i recommend getting a valuation.


Thanks for your reply
Even if I owe around 52000 on my mortgage it may not be applicable.

I will look into a a valulation, online zoopla give a valulation of 70000 to 80000

Thanks
Ste
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Michael Peoples
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by Michael Peoples » Fri May 12, 2017 1:37 pm
The usual terms are that you must remortgage to a maximum of 85% loan to value and raise a minimum of £5,000. It the property is 70k then 85% equates to £59,500 which raises 7.5k whereas if the property was 67k then 85% equates to £56,950 which would only raise £4,950. The first scenario sees an extension whereas the second one does not. Check your mortgage statement for any early redemption or settlement penalties as this could also reduce the level of equity.
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Steeddie
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by Steeddie » Fri May 12, 2017 4:51 pm
Michael Peoples wrote:
The usual terms are that you must remortgage to a maximum of 85% loan to value and raise a minimum of £5,000. It the property is 70k then 85% equates to £59,500 which raises 7.5k whereas if the property was 67k then 85% equates to £56,950 which would only raise £4,950. The first scenario sees an extension whereas the second one does not. Check your mortgage statement for any early redemption or settlement penalties as this could also reduce the level of equity.


Hi thank you just checked my mortgage statement my early redemption amount is 49043 as of 31/12/16

Where is best to get a low valulation
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kallis3
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by kallis3 » Fri May 12, 2017 5:24 pm
Your local estate agent and make sure you tell them it is a forced sale.
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Steeddie
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by Steeddie » Fri May 12, 2017 5:27 pm
kallis3 wrote:
Your local estate agent and make sure you tell them it is a forced sale.


Do you have to get a written valuation
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Steeddie
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by Steeddie » Fri May 12, 2017 7:00 pm
Michael Peoples wrote:
The usual terms are that you must remortgage to a maximum of 85% loan to value and raise a minimum of £5,000. It the property is 70k then 85% equates to £59,500 which raises 7.5k whereas if the property was 67k then 85% equates to £56,950 which would only raise £4,950. The first scenario sees an extension whereas the second one does not. Check your mortgage statement for any early redemption or settlement penalties as this could also reduce the level of equity.


Hi Michael,
as in previous my mortgage redemption amount is 49043 as of 31/12/17.
I have done an online valuation on property price advice of 65000 is this valuation sufficient for the equity clause.

I just want to thank everyone for there advice
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