Hello kidz192523 and welcome to the forum.

It sounds likely that you'll need to pay the value of the equity over in order to complete your trust deeds, though you should check this with your trust deed firm.

Whether the amount is based on the equity at the start of the trust deeds, or the amount that is there now, will depend upon what was agreed at the start.

not sure what was agreed , as no valuations were done prior to going into a trust deed , also we dont have the money to pay 15000 , what way could we pay this ? many thanks mejazi10,

Was the situation with the flat not discussed at all with your trustee? I am very surprised that they did not do any valuation at the time - maybe they did a drive-by assessment?

It is likely that you will have to come to some agreement to pay over a lump sum and/or make extra payments to your trust deed in order to avoid potentially having to sell. Are both you and your wife in trust deeds or just yourself? And is the flat in joint names, kidz192523?

it wasent really discussed ,but we were told we wouldent need to sell the flat , we wee just told we would be debt free in 3 years , its only coming to light that we might need to pay the equity ,no valuation was done before we went into the trust deed ,yes my wife and i are in trust deeds , and the flat is in joint names , also there is no chance i can pay a lump sum as i owe family members money already and need to start paying it back when the trust deed ends , could we have to sell the flat ?? or could they make us pay longer , if so for how long ?? any advise is very welcome , a very worried mejazi10

It is possible that they could force the sale of the flat I'm afraid, mejazi10, but we are getting ahead of ourselves a bit. First things first, the equity needs to be clarified, by means of a proper valuation -given the housing market maybe the value isn't as much as you might think?

Depending on the size of the equity, hopefully you will be able to make proposals to your trustee to extend your contributions to cover any such equity, or as much of it as possible, which they would accept rather than them having to force a sale and the costs that would involve.

hi again ,who is the trustee ,the credit firm or the banks i owe money to ? ,also if there is a lot of equity how long after the 3 years could they make me keep paying , thanks mejazi10

Hi kidz

Your Trustee is the person appointed to act as Trustee in your Trust Deed.

Which firm are you dealing with?

The decision to extend will be up to your Trustee, however I do not think an extension is likely unless the contribution is substantial to cover the £15k over 1-2 years.

Mark

hi ,you say if an extension is not likely ,what is the likely outcome ? my wife and i owe money to several diferant banks and cards ?

Hi kidz

I am confused. Are you in a Trust Deed and was a Trusee appointed. If so, who is the Trustee.

Any money to banks etc would be part of the Trust Deed, so I am unsure why you would still owe this.

Mark

hi sorry to confuse you, yes myself and wife are in a trust deed with creditfix , and the money we owe to the banks and cards are in the trust deeds , , but im worried we will have to sell the flat to repay the debts we are outstanding when the trust deed ends ,

Hi kidz192523.

Can I suggest that you contact Creditfix and enquire whether your property was valued around the time that you signed your trust deeds?

You may also wish to check whether it will be revalued when you reach the end of the expected monthly payments.

This will give you some insight into whether an equity amount has already been set at the start, or whether a valuation at the end of the trust deed will be used to decide if you have a responsibility to pay in lieu of any equity that now exists.

Please let us know what you are told as it will be helpful for giving you more information about how things might now develop.

Property prices have been in decline and many people overestimate the value of their homes. Hopefully this will apply for you and the issue (or potential issue) might be avoided altogether.

Hi kidz

I think Trust Deed Assistant is correct.

You should speak with your Trustee and ask:

1. Did they have a valuation and what was the value
2. Did they obtain a redemption figure
3. What equity figure do they expect you to pay.

Was the position not fully covered before you signed?

Mark

mant thanks to all who have given us advice , what a great website , cheers mejazi10

hi mark as far as im aware i dont think it was fully covered when we took it out , was this a big mistake ? what can i do to rectify this ?cheers mejazi10