Notifications
Clear all
Scottish Trust Deed Forum
6
Posts
3
Users
0
Reactions
1,602
Views
Topic starter
20/07/2011 11:47 pm
Hi there
Gosh, where do I start?! My husband and I entered separate PTDs in July 2009. A month later we separated and he moved out. Neither of us have contributed to our PTDs in the last 2 years due to running 2 homes. We have both been told that our trust deeds will be extended to 5 years. We will both be in a position to make contributions to our PTDs in 2 months time. In amongst all this, my ex has filed for divorce. We are still very good friends but have decided that it's best to get divorced at the moment. I called TD today to ask what usually happens in the circumstances of getting divorced where I live in house with children and ex has moved out. They stated that mortgage company is usually fine taking my ex's name off mortgage if he wants to sign house over to me, which he does. Is this right, do mortgage companies just take his name off at our request? I am making mortgage payments by myself at the moment with no contribution from my ex at all so that's not a problem. Of course if ex's name is to be removed from mortgage then we have to release the equity now to clear his part of equity, or thats what they were suggesting anyway. The alternative is to stay joint mortgage holders and get TD to write letter to solicitor to that effect. Solicitor wasnt keen for this as doesnt usually happen and she wasnt sure if courts would allow it. Anyway, house was valued in July 2009 at 100K and current mortgage owed is 93K and the mortgage we took out was 99K. So am I right in thinking that the equity is around 7K? If we dont settle equity now then house may increase in value. My thinking at the moment is that we settle equity now, have solicitor clear ex's name off mortgage so that the house is mines. I had to ask my parents tonight if they could provide around 4K if needed to contribute to my part of equity if we decide to settle it now ( this was so difficult to do!). They reluctantly agreed. My ex is going to ask his parents to do the same. My question is: can the TD ask you to release more equity at the end of the Trust Deed again? If my parents cant pay, I dont think I could afford remortgage so that isnt an option. Also if my parents pay for my part of equity and my ex's parents wont, then can my ex ask to pay his equity over the extension of his TD and still have his name taken off mortgage? I requested a redemption statement from mortgage company today which solicitor needs and planning to ask TD to carry out up to date valuation tomorrow so that I can see what equity figures we are talking about. Oh, one more question, if our parents pay our equity, we wouldnt have to remortgage as well would we? Well done if you got this far with reading my ramblings. I just have so many questions and this seems like a really good place to hear other peoples perspectives/experiences and get a little support. Thank you for taking the time to read 🙂
21/07/2011 12:15 am
Hi pinkpig
Your post covers a lot of areas, almost like an exam question. I'll try to cover each point;
You took out TD's in July 2009 and have paid no payments in 2 years. Your trustee has an obligation after 3 months to advise your creditors of the default and seek their discharge.
If they have done nothing in 2 years, I suspect there is an admin problem.( biting my Tongue at this point) The comment on the transfer of the property is nonsense, but if they have done nothing in 2 years, perhaps thats the standard they aspire to! Both Trust Deeds are separate and equity will need to be dealt before any consideration of transfer. Even allowing for this, Mortgage companies are fairly reticent to transfer property into one party's name.
Mark
You Trustee has a duty to you and your creditors. Shelving the file does not fulfil that duty.
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
21/07/2011 12:24 am
Hi Mark
Thank you for your prompt response. When you say that the trustee has an obligation after 3 months to advise my creditors of default and seek discharge... what does that mean for me? That I have to go bankrupt? I agree that there might be an admin problem. I've had nothing in writing from this company except my original agreement. You also said that the comment about transfer of property was nonsense - what does this specifically refer to? Sorry to add more questions but just trying to do what I can to keep my home, where my children are happy, and not put my parents out financially in the process. I really appreciate your advice, thank you.
21/07/2011 6:03 am
Hi pinkpig
There are various rules, legislation & guidance which your Trustee does not appear to have followed. As mentioned previously, there's a requirement to notify creditors after 3 months missed payments. The Trustee also needs to submit annual reports to creditors and it would be interesting to see what he has reported to creditors in the last 2!
Re the property, each trust deed has an interest in one half share of the equity and nothing will happen until each half is paid to the trustee. Once paid, your trustee should sign a formal disposition releasing his/her interest in the property and that should full discharge any interest and future interest. Reading the performance to date, I'd examine this bit very carefully. This action would allow you to then discuss any potential transfer in the divorce possibly via some Minute of Agreement with the mortgage companies consent.
Hopefully this helps.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
21/07/2011 8:42 am
Hi Mark
Thanks again for another reply. That's really helpful. I obviously need to ask my trustee about the state of play at the moment as well as sort out getting figures for equity.
21/07/2011 9:45 am
Hi Pinkpig
Mark has covered everything fully for you, so hopefully you feel things are clearer. My only concern for you is the lack of communication between your self and the Trust Deed company. I feel astonished, and as Mark said, what have they been doing for 2 years! I don't like the sound of their practices, and would be asking for the outcome of any phone calls you have with them, to be confirmed in writing.
Shona is not currently posting in the Trust-Deed.co.uk forum.
