Hi Wallswa

From previous posts, you need to ask how and when the equity is calculated? Is this at the start and the figure won't change or will they do a valuation in 3 years when there is could be a big increase?

Pat

Hi wallswa,

It would be normal to contribute the equity that you have in your house towards your debts as part of a trust deed.

The experts on this site recommend that you are very sure before you sign the trust deed about how much that will be. To achieve this a valuation would normally be done to calculate the equity in the house now.

Hi wallswa

TD Assistant is correct, however the important part is how they calculate this and as I keep saying get this in writing before doing anything.

My concern is that they advise you they will have a valuation carried out, then calculate the equity and you have, say ?ú5,000 to deal with at the end of the Trust Deed. However (and this is becoming more and more an issue with some firms) they carry out a further valuation at the end of the 3 years and the equity has gone up to ?ú30,000 and you have to find this.

Mark

I did ask about valuation and they said it would be based on the figures now not when the trust deed ends as long as I get these facts in writing sould it be enough?

wallswa

Hi wallswa, they should have the valuation carried out after the Td is signed (& cover the cost)

I would have them confirm in writing that the equity is assessed at the start and no further valuations will be instructed
before signing anything.

Mark

Hi Just had a valuation done which would entail me putting ?ú21000 into TD at end of three years has been suggested an option may be to re-mortgage now,not sure about this as I feel this would make my mortgage payment higher than I could cope with as I would need to release around ?ú35000 if that would be allowed which I'm not sure I would get a re-mortgage.I'm feeling very confused,can anyone help.[?]

wallswa

Hi wallswa

Can I ask who carried out the valuation. The reason I ask is Estate Agent valuations tend to be higher in value than surveyors valuations as they are trying to get the business/sale and usually inflate the price.

Mark

Hi Mark,It was DM Hall who were instructed by Grant Thornton

wallswa

Be careful wallswa - I think you are right to feel hesitant about remortgaging at the end of the TD. It is getting harder and harder for people with poor credit ratings to get remortgages at reasonable rates, and if you cannot raise the funds then you could well be forced to sell.