Hi helpplease,

The equity situation shouldn't be confusing for you and I fear it's not been properly looked at or explained to you. There should be no ÔÇ£maybeÔÇØ anything. It should be agreed and confirmed in writing so you know exactly how things will work. Also, there shouldn't be any skipping over any details. Has anyone organised a valuation and have you provided a redemption figure?

In a Trust Deed the equity should be established at the start before anything is signed and this is the agreement that should be documented. It's based on the current position at today's date, not in 4 years time.

If you have negative equity and this is confirmed via a valuation and redemption figure and you stick to the Trust Deed agreement and successful complete it then there shouldn't be any need to revalue the property or extend it for anything.

Have you actually sat down with a qualified advisor and looked everything and discussed everything? Is the company you are using actually the company that will handle your Trust Deed?

We always advise someone to sit down with a couple of qualified advisors in person, explore all of your options and then decide on which one best suits your circumstances. You should then have a clear plan of how to move forward without any unknowns.

Hi helpplease

In termsd of the new(ish) guidance, the position with equity needs to be assessed and agreed at the start. If there is no equity as you state, then that should be the position throughout and should not change.

It's probably the single biggest issue on the forum and it's important that this is agreed beforehand. The new regulations coming in on 1st April allow for the cost of a valuation to be taken into account as an expense of the Trust Deed which it doesn't now. Best idea would be to have the equity formally assessed and then you will know exactly the position moving forward.

Mark

Mark

Has a valuation of your home been done? That should be done before anything is signed, so that the equity position is clear. As the others have said, if it is negative equity then there should be no need for any extension at the end.

All very strange to be honest. What does the paperwork say?

Hi I remortgaged 3 months ago and a valuation was done then. The company dealing with my Trust deed have that information and have my redemption statement. Apologies I have looked again and I'm actually £14 in negative equity. A representative from the company has came to my home and discussed my income and expenditure etc, a monthly payment was agreed however as previously said they then phoned mentioning maybe having to extend the payment for another year to cover the possible equity at the end.
The paperwork I have to sign does not have the proposal to the creditors attached so I don't know what I am signing up for?
I just think it's unfair that I will be penalised to continue to pay my mortgage if the Trustee is then able to ask for further payments to cover equity, if any?

The paperwork I have to sign is the Trust deed letter of engagement, a declaration to say I have received unbiased advice, reasons why I opted for a trust deed and a Form of statement for purpose of regulation 7. Thanks

Hi helpplease

This is not the actual trust deed documents you are signing, just the initial paperwork.

As detailed above, it is important that the position with the property is clarified before you sign anything, especially on the basis that there is some confusion at their end if the current position shows negative equity.

Mark

If you have negative equity and this can be evidenced by a valuation and redemption figure then I cannot see why they are saying you ÔÇ£mightÔÇØ have to extend the Trust Deed for 1 additional year.

It should either be 4 years or 5 years and you should know this up front before committing to anything.

There shouldn't be any uncertainty when it comes to signing a Trust Deed and especially when dealing with any assets.

You wouldn't actually see the full proposal that would be made to creditors at the outset when you are signing as this is made up of a combination of forms. You should however see some of these forms and the main thing you want to see is the ÔÇ£Statement of AffairsÔÇØ which is the document that creditors receive confirming your asset position and how these will be dealt with.

You should check to see if you are dealing directly with the company that will handle your Trust Deed or if you are dealing with middleman company.

I would say go with your gut feeling. If you are feeling unsure about it all then don't rush, take your time, ask loads of questions and consider a second or even third opinion.