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Topic starter
16/03/2009 2:46 pm
Hi
Looking for some advice. My husband and I both have TDs which are due to be finished at the end of April 2009. During the process, we remortgaged to release some equity but were unable to release 100% as companies only offered up to 90% loan rate. We are worried about remortgaging now due to the current climate and also the ability to get up to 100% of the valuation that was previously done. We are also worried that the house value has dropped since the initial valuation (which the company advised will be the vluation used). I was wondering if you could advise what could happen if we cannot remortgage and release the remaining equity? Are there other options?
Thanks
17/03/2009 9:35 am
Hi
There are a couple of ways this could go:
1) Trustee accepts that impossible to raise the funds, even by selling the property, given the fall in house prices. He/she therefore contacts your creditors to seek your discharge from the trust deed on the basis of the funds already paid in, with your creditors accepting a smaller dividend than they first anticipated.
2) Trustee/creditors insist that funds must be raised to cover the difference before you will be discharged. A common way to overcome this would be to extend your monthly contributions until an amount equivalent to the remaining equity has been paid, or find a third party willing to help you out.
I think it would definitely be worth trying to persuade your trustee to pursue the first option. If they think it is unlikely that any further funds will come in to the trust deed then this would seem to make the most sense - there isn't any point in forcing the sale of your property if it is unlikely to yield any significant profit, it would just end up costing them money and reducing the funds available to creditors further.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
17/03/2009 10:07 am
Thanks Kevin - will certainly pursue first option given they already got £23K equity
Thanks again
07/06/2011 8:18 pm
Hi Magscb14
How did you get on with equity release? Am in that situation now - Nightmare.
Thanks
