The trustee is likely to look for all of the equity, Golfer66, though may be willing to reach a compromise if a suitable offer can be made to buy out their interest. Whilst they could potentially force a sale it can cost a lot of money, so most trustees are reluctant to do so if there is a sensible offer made.

Thanks Kevin can you tell me what is a sensible offer as we have no funds av to us apart from our equity and there's no way we will get a company to remortgage our house

Really starting to panic as I thought that as soon as the 3 years was up we would be able to move on .

Hello Golfer66.

Do you agree with the valuation being used by your trustee?

How much has your monthly payment to the trust deed been?

How any equity in your home would be dealt with really should have been a subject that was discussed with you and considered prior to starting the trust deed. Your assets "vested" in your trustee when you signed the trust deed(s) so they really have no alternative other than to realise it for the benefit of your creditors.

Hi Golfer66,

When you say an ÔÇ£estimatedÔÇØ £15,000, has this been verified with valuation and redemption figure?

What was the original agreement at the start of your Trust Deed?

As Kevin has said, your Trustee may be will to reach a compromise in relation to the equity in your property. The first thing you want to do is establish exactly what the equity in your property is. Once you know what this is, you can then decide on a suitable proposal to make.

Our redemption figure is £94,000 approx and the trustee has said the value off our house is between 120 -130000 and they said that means we have around £15000 equity . We were told that after 3 years we would be debt free as our house had no equity we have now been paying our debts over 5 years which includes 2 years of a debt management plan .

TDA between me and my wife we have paid £310 per month for the whole TD which roughly works out we have paid about a third off our total debt .

Thanks for the breakdown.

You really need to request that your Trustee carry out a valuation of your property to establish exactly what the equity is. The value should not be a ÔÇ£between these figuresÔÇØ. You then want to have a letter from them confirming exactly what the equity is.

I'm not sure what method they are using to calculate the equity as if your property is worth £120,000 and your redemption is £94,000, this would mean that your property has £26,000 of equity within it.

It could be possible to extend your monthly payments beyond the three year period to try and pay down the equity in your property but this again depends on the level of equity.

David they say they have taken a drive by valuation and are going on similar properties in the area selling prices. And about the equity I couldn't understand that part either as I thought it would have been more .

I started on these plans 5 years ago and now it just seems as if it would have been better to just soldier on with trying to pay the debts as through time I will have paid most off it back anyway but will still have a bad credit history.

If they have carried out a drive past valuation then this should be an exact amount and they shouldn't have to even consider similar property prices in the area. Equity should be calculated from a valuation and redemption figure.

Ask to see a copy of the drive past valuation. At the moment, I have the feeling that they haven't carried out a valuation. You can even consider speaking with a local estate agent to establish what they think your property could be worth.

Again, you want to make sure you receive everything in writing from then with regards to the equity and any proposal for dealing with this.

David I contacted an estate agent today and they said that the house would be offers over £120,000 and that the home report would probably come back at £130,000 . So based on what they are saying how much do you reckon I will have too pay or will it be the full equity .

Hi Golfer66.

The amount that you'll have to pay will be set by your trustee.

If they're proposing a figure that you believe to be less than the true equity perhaps you might choose to accept that?

So if I agree to there figure and the payments continue for say 12-18 months what happens after that because my redemption figure will have come down more in that time and I could have more equity again ???