Property market...F+F

[jpj]

Just read The Sunday Times and it is predicting possible no property price rises for the next 2 years (or very modest ones in low single figures for at least the next 2 years!)
Obviously this would make full and final settlements look more attractive to creditors, as sitting round for another 2 years hoping for more equity release from the client would be a lot more unlikely!
Can IP's use their predictions for the property market to persuade creditors to accept a F+F offer now as opposed to waiting? Do IP's write a summary of plus points for accepting the F+F now ? (i.e stagnating property prices) or do they rely on the creditors to be able to judge the pros and cons themselves??
JPJ

[MelanieGiles]

We are not property speculators jpj, and it would be dangerous to try and become one. If a full and final settlement is sensible, then the creditors ought to see the commercial benefit of same - the difficulty is, that if you have disposable income as well, then they generally like to see ongoing payments for a five year period followed by equity release at the end, and are prepared to therefore gamble upon the market over that period.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[jpj]

Thanks...point taken Melanie!