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Topic starter
11/07/2011 12:57 pm
Hi 2.5 yrs into my trust deed and the topic of home equity has arisen.This was disscussed at the start of TD during a home visit.I was asked what amount of equity was on the home.. I have a shared ownership 1/4 share. Going by neighbours sale price 2 yrs previously I stated would be between 7000 / 10000. Just had a valuation done and been hit with a fig of 33000 for my 1/4 share equity..As I sit here I dont know were to turn.. No way can I ask a member of family to take on such an amount, can i offer the orignal amounts which would be managable or face putting home on market and become a burden to local council..
ea cairns
11/07/2011 1:08 pm
Hi Grandad
Is there a mortgage on the property?
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
11/07/2011 1:22 pm
Hi Mark . yes I have a 17000 endowment, this has already been taken off, I failed to mention equity is 50000 minus the 17000 making up the 33000
ea cairns
11/07/2011 1:35 pm
Hi granddad. Welcome to the forum.
Just to confirm, could you tell us:
1 - What the property valuation has come in as now.
2 - How much you owe in total on any mortgages you have.
3 - The value of your endowment policy.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
11/07/2011 1:38 pm
1. Full valuation fig. 200000
2. Endowment mortgage 17000
3. Policy under performing at 11000
ea cairns
11/07/2011 2:02 pm
Thanks granddad.
Is the trust deed company involved aware of the endowment policy worth £11000?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
11/07/2011 2:29 pm
they are aware of endowment mortgage but to be honest unsure if they know of shortfall
ea cairns
11/07/2011 2:55 pm
Hi granddad.
I'm a little confused by the figures provided at the start of the trust deed. I apologise if I've missed something important.
If you believed that there was £10000 equity at the start of the trust deed, and your mortgage balance was similar to the current amount, that would suggest that the property was worth just over £100000. That's calculated by adding the £10000 equity you mention to the £17000 mortgage (total £27000) and multiplying by four to account for the 25% ownership.
That valuation of just over £100000 contrasts sharply with the valuation that has now been done at £200000 only 2.5 years later (when most properties have been edging down in value).
Could there have been an error in the estimation of equity at the start of the trust deed?
The £11000 endowment policy itself is also a source of confusion for me. In many circumstances that might be treated as an asset as well in addition to the equity in the property.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
11/07/2011 4:32 pm
Hi TDA
Our original figures were based on neighbouring property with a increase added to take into account house price increases around that time, a proper valuation was not done.I see from reading other post that I could have got a valuation at the start and for a fee had this figure locked in but was not informed of this. I was getting confused with figures and have spoken to my TD.
Firstly they are getting intouch with surveyors to check figures,
Ok if figures stand this is were I am.
1/ Valuation £200000 divide by 4 = £50000 .
because I have endowment mortgage when I hand over my endowment I have no cover to pay off mortgage. So I need to remortgage my 1/4 share and have the equity included.
2/ Approach housing association to see if they will buy my 1/4 and allow me to rent.
3/ Sell on open market. Next question. If house sells for more than £200000 will TD get all the 1/4 share profit
ea cairns
