Notifications
Clear all
Scottish Trust Deed Forum
5
Posts
3
Users
0
Reactions
3,099
Views
Topic starter
16/06/2015 11:23 pm
Hi There,
Im posting on behalf of my boyfriend and we would appreciate any advice on how to proceed with a massive hike in the Trustee's interest.
He took out a Trust Deed in August 2011 with a local company. It was agreed he would pay x amount for the next 36 months. With the Trustee's interest being £3,500 (his Debtors share to pay back)
He did this on the basis that his House had an estimated value of £110,000.
Things were going well and there wasn't in issue until August last year when he received a letter from a different company (the original company had transferred the Trust Deed over, the reason I'm not sure why)stating they now are basing the final figure he needs to pay is now based on the House's Market value of £130,000. The Trustee's Interest now stands at £16,296 (his Debtors share to pay back)
He then received a letter in March this year from the new company saying the original Debtors share stood. This has changed yet again and they are after him for the higher amount.
The difference between £16,296 and £3,500 is marked and is beyond him to reasonably pay off.
Does anyone know if they can all of a sudden change the goal posts and now deem the Trust Deed is based on the Market Value of the house and not the original Estimated House Value to which he originally signed up to?
He has been in touch with the Citizens Advice who are sending the debt company letters via themselves but they are still demanding the higher amount.
I worry that this on going situation is starting to affect his health with all the stress. I would very much appreciate if anyone had any advice or pointers in how we can get this resolved soon.
Many thanks in anticipation [:)]
17/06/2015 12:04 am
Welcome to the forum Musicman65.
The key point here is likely to be what was agreed at the start of the trust deed.
In some instances it might have been a fixed sum agreed, based upon the equity that existed at the start.
In other instances the equity might be due to be revisited later in the arrangement, typically right towards the end.
Does your boyfriend recall precisely what was agreed at the start?
Does he have anything in writing to confirm the position?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
17/06/2015 9:43 am
You say "estimated" value of £110,000 - was there a formal valuation done at the start, Musicman65?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
17/06/2015 5:16 pm
Hi to you both and thank you for responding to my earlier post.
My boyfriend has all the paper work from the original Trust Deed.
Its dated mid August 2011 when he signed up and it states under Assets - Heritable Property - the name of his house and the Estimated Value being £110,000.
He also has an External Valuation Report was done at the end of August 2011 which states in the Valuers comments/observations: " The valuation of the property with a restricted 90 day selling period would be £110,000".
However, this same report does state the Approximate market value of the property is £130,000. This report only came to light in August 2014.
My boyfriend states everything was based on the 90 day sale period of £110,000 whenever he discussed the issue with the Trustees.
No house on the street and its close proximity; between 2011-2012 sold for more than £110,000.
I hope this is helpful in I look forward to hearing your replies 🙂
17/06/2015 5:27 pm
I think Trust deed Assistant is right - the key point is whether the original Trustee made a firm agreement in writing with your boyfriend at the start of the Trustee. If so then I think it would be hard for the new trustee to justify the goalposts being moved if your boyfriend has fulfilled all obligations as promised.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
