Hello dragonfly5.

The process followed by the trust deed companies represented on this forum (and some others) is as follows:

1 - They'll be prepared to put in writing to you, before you sign the trust deed, exactly how equity will be handled.

2 - A valuation will be instructed when the trust deed has been signed. This valuation will be based upon what the property would be worth if it needed to be sold quite quickly (it's therefore often a little lower than people expect).

3 - If there is no equity, and the client complies with the terms of the trust deed, that will be the end of it. There will be no further valuation later (and they wont asked for £500 for this as a few other companies seem to still).

4 - If there is equity the amount will be fixed at that point in time. Prior to the trust deed being discharged this money will need to be paid over to help repay the creditors.

If anyone believes that they have a lot of equity in their home they probably shouldn't sign a trust deed (there are alternatives) unless they either:
A - Have someone who they know will pay this sum for them or/
B - Don't object to selling the property later.

If anyone believes that they have a little equity in their home they may wish to consider how this will be dealt with later before they sign a trust deed. Will someone pay it for you? Are you happy to make some extra contributions to pay it at the end of the usual trust deed term?

I hope that this helps to explain this to you? Please ask if you have any more questions.

In addition to TDA's post, which explains the process very clearly, we have quite a few cases where family members pay contributions throughout the period of the Trust Deed, even if it's only £20. This reduces the balance that will need to be paid at the end of the Trust Deed.

Is your property jointly owned or in your name only, as it would only be your share that would require to be realised.

Julie