Hi lorraineek

It depends what was agreed at the start and that is why it is important that the equity is 100% clear at the start before you sign anything. It could be that the figure is the equity with a reduction built in.

Mark

lorrainek,

Some firms will decide to discount the first £5,000 of equity as a provision for legal action should they require to take it. I would refer you to your initial proposal and it should be clear whether this has been included or not.

There is always the risk that equity may increase during the period of the Trust Deed is a proposal has not been accepted to prevent the Trustee from re-evaluation the property value. It may also decrease however.

I would advise you submit a proposed offer to them, be it a 3rd party lump sum, installments or offer to sell the property. You never know the trustee may accept a slightly reduced offer if they can get the funds quicker.

Hi lorraineek

I think your post highlights the issue where doubt remains on the position re the equity.

In all Trust Deed cases we deal with, we obtain a vauation before any documents are signed and obtain a note of the redemption. This ensures the position with equity is 100% clear before anything is signed. We do not carry out further valuations. This takes away all the unknowns and allows the individual a clear plan. I think the position with equity is the single most important point.

Hopefully you can clarify matters with the Trustee and you rceive a satisfactory conclusion.

Mark