Trust Deed Equity Release. Help!!!!

[danielspaniel]

things keep coming to mind,

 

your trustee should have ahd a valuation before the trust deed was agreed and shoul dhave gave you a figure of what he was expecting for your equity release at the end. was this figure given to you? because i donlt think they wqould have done another valuation unless you contested the original figure after 3 years?

 

this is a term in a trust deed:

 

" I have agreed that the debtor will obtain thrid party funds or a remortgage at the end of the trust deed period to relinquish my interest in their share of the equity in the property.

 

In the event that the third party payment is not received within the agreed timescale, the property will require to be revalued"

 

 

Ida x

 

Yes, Ida. The original figure was £2000 but we have obviously been paying the mortgage for three years which is why the figure is now around £4500.

 

i just wonder then, what the surveyor was doing at my house last week if he was not valuing the property:???:

 

does your quote above mean that if i am unable to come up with the money then he will need to arrange another valuation? surely that would be to my advantage?

 

sorry to bombard you with questions but i am really stressing and you seem to know what you are talking about

[IdaInFife]

no, it's becasue the £2000 wasn't paid at the end of 36 he has done another evaluation. it makes sense now.

 

you really need to get your options from the trustee

 

 

ida x

[danielspaniel]

i was never given the option of paying the £2000

 

he has always just said "we will deal with it a the the end"

 

but thank you ever so much. i will try to get a hold of him on Monday

[IdaInFife]

let us know what happens ,

 

have a night off and have a T

 

ida x

[caro]

I don't know if this link may give you any more information than you have already. National Debtline Scotland | Debt Advice | Factsheet 21 Trust Deeds

[danielspaniel]

Many thanks. i'll give those people a call

[alfied]

If I were in your position I would first get a Mortgage Valuation Report (Scheme 1) done and I would then contact my mortgage provider and ask them for an up to date balance. Then subtract the balance you owe from the valuation and divide that figure by 2 you will be left with your equity.

If the figure is, say, £10,000 then that is what they will be looking for.

 

As far as I am aware there a number of ways you could pay this: your partner could buy our your share, a friend or a family member could buy out your share or you could come to an arrangement with the trustee; whereby you could pay the £10,000 in instalments e.g. £200 pm over 4 yrs.

 

The part I am not sure about is which figure they will use as the valuation of the house. If it is the one from 4yrs ago then why would they have had a valuation done last week?

 

Also before they can sell the house they would need the permission of your wife/partner. I am not sure if that can be overidden if they brought it to the bankruptcy court.

 

Maybe someone else can answer these questions.

 

M

[caro]

A house is only worth what you can get for it, so that, less any o/s mortgage is the amount of equity left - or not, as the case maybe. No-one can have equity that is no longer there.

[IdaInFife]

did you manage to get in touch wiht your trustee today?

 

 

ida x

[danielspaniel]

i did thanks.

 

they gave me the option of extending the trust deed till its paid off. it means another 18 months of payments but no need to sell the house. apparently they base the equity on the original value of the house so it wouldnt have mattered if the property had gone up or down. i still dont know why someone came out last week to look at it

 

anyway. its not ideal but such is life.

 

thanks for all your help guys

[blueda]

The main thing is you do not have to sell your house.

[IdaInFife]

i think your trustee has maybe jumped ahead.

 

basicaly at this point he is looking for around £2000 and if you can't pay that then he would need to extend,

 

I know it's another 18 months but at least you don't have to worry about selling or finding the £2000.

 

hope all goes well

 

ida x