Hi squench2002,

To answer your question quickly yes there are a number of options available to raise equity:

1. A third party may pay the lump sum or installments to the Trustee to release her interest.
2. You may market the property for sale.
3. You may investigate any government schemes whereby the local council can purchase your property, lease it back to you and release any equity at the same time (up to a maximum of £8K).
4. Additional contributions at the end.

Any questions, please ask.

Hi squench

the normal way we try to deal with this is by an extension to the period, however this will depend, I suspect, on the equity figure required to conclude matters and if the extension is reasonable.

How much are they looking for?

Mark

Hi,

they are looking for £35k.

Hello squench2002.

When was your trust deed signed?

How much have you paid into the trust deed each month?

Negotiations might be possible, squench2002, but I think you'll need to be able to find a way of paying over the majority of the equity figure you mention

Hi,

we entered the trust deed in May 2010.
Combined we are paying £550 per month.

I have emailed the company who deal with our Trust.
I have explained the situation and they will be speaking with the trustee tomorrow.

Is it wrong when you are entering a trust deed for the IP to make a plan for remortgaging to raise funds to pay a lump sum when the possibility of that actually happening is vitually nil?

I'm just a little troubled about the idea that a remortgage was agreed squench2002.

In 2010 it was perfectly clear (and had been for a couple of years) that it's almost impossible to remortgage during a trust deed. Other options really should have also been proposed and/or considered.

£35,000 is obviously a lot of money and would probably take too long to pay over in monthly installments of £550.

Do you think that the figure of £35,000 accurately reflects the equity in your property if it had to be sold in the current market?

I'm afraid it does.
We had our property valued and it came back much higher than we expected.
We argued about this but to no change as we had only moved in to the property not long before the valuation was done.
We paid the £500 to protect future equity (which now looks as if it was completley wrong to do so).

I am quite annoyed that we entered into this under the advice and guidance of our IP and now think due to our inexperiance that there are things that are not correct.

Yes to my mind it should never be relied upon to get a remortgage to pay the lump sum and the IP should have known that. As we all now know there is no chance of that happening.

So was there equity when you signed the trust deeds? At what point was the valuation (or the valuations) done?

What was the £500 described as being for?

Yes, after we had signed the trust a valuation was done which confirmed we had equity.
The £500 was to protect future equity.

Does that mean you agreed an equity figure at the start (based upon the valuation) and that the £500 was to protect you from that equity figure increasing later?

The past 2 months I have been calling IFA's and brokers and realised we could have re-mortgaged to consolidate debts and then have a debt repayment plan. We would not have entered into a trust deed if we had not been told that we could re-mortgage.

Yes it was to stop the equity increasing further.