I got mine valued by the Trustees surveyor and my house came back at £125000. I didn't agree and got another suveyor to value the house. He valued it £5000 less so I owed less equity. Only problem with this is that you have to pay for any survey you get to challenge the original valuation. Whoever does it will inspect your house and also look at how property is moving in your area and what's being paid for comparable properties. I was lucky that I could borrow the money for the survey from my dad and he also lent me the money to pay the equity. Once my trust deed is complete, I'll start to pay him back what he's lent me.

The other thing to remember is trying to find the equity you need to pay. You have 3 years to come up with this and it's not easy in the present climate. I was lucky and was able to get family to help me but if you can't raise the cash, it may mean extending your trust deed to cover the equity. Good luck with what you decide to do and remember, 3 years will pass quickly but you'll be surprised how soon it'll be up.

Hi am123456.

When did your trust deed start? Was the valuation done soon afterwards.

If you can evidence a mistake having been made I would think that any reasonable Trustee would look into it.

Hi am123456

I note from previous posts that you had considered selling your house at the end of the Trust Deed. If your house sells and the proceeds are less than what was agreed at the onset, you won't be expected to pay the difference.

You could always ask your Trustee to provide you with a copy of the valuation that they obtained as a starting point.

Julie

Hi Julie

I'm interested in how this works with creditors i.e. aren't they advised of the amount of equity at the outset and they'd expect this to be paid to them. If that's the case and there is no or reduced payment to them won't they react badly and challenge this?

Thanks

Hi TDA - it started about 8 months ago and the survey and agreed amount was done before the start of it and when i signed the papers it was all written down on the trust deed

Hi Julie - yes had considered selling as I thought i would be working abroad, that all fell through, i also had selling in my head as its the only way I would be able to raise the equity unless i can re-mortgage (which reading posts on here is unlikely)

Just to add, before i took out the trust deed i spoke to an independent financial advisor attached to the local property company who i bought my house through and who arranged my mortgage, i was looking at re-mortgaging and hoping to pay off debts that way and she said their estimations of my house value was £120,000

It's a bit more difficult to challenge it if the valuation was done prior to your signing and you didn't say anything then. Retrospective valuations can be done by surveyors though, so it might be possible.

I just assumed the house prices had caught up with other parts, i was desperate at the time too so must have not thought straight! so even if i did prove the valuation was wrong i'm pretty much got no hope? this makes it even worse if 20k less equity for a remortgage at the end!

Hi am123456.

I don't think that Kevin is saying it's impossible.

If you think there has been an error made, the size of the sum involved might well encourage you to make some effort to correct the situation.

Hi, I spoke to my company about this, they said that because 50% of the equity was not paid in at the start, at the end of the trust another valuation will be done and if the value is a lot less the equity will reduce

Has anyone seen this scenario before?

Cheers 🙂

Hi am123456.

That does seem a little different to what we've often read here, but presumably you'd consider that to be a fair outcome for you?

Hi TDA, yeah that would be fine with me if it turns out it was valued wrong 🙂 i just thought id ask if anyone had heard of this as i thought once it had been decided at the start that was it set in stone!

In practice there is very little set in stone in a trust deed and changes happen which all parties concerned have no option but to make the best of. Sounds like your trustee is trying to do this.