Hi Steven,

I'm glad you're pleased to have found the forum.
Congratulations on reaching the end of your Trust Deed.

The issue of equity contribution and Trust Deeds seems to be a major area of concern and/or confusion for those contemplating or completing the process.

In terms of a mortgage you'd be well advised to find a mortgage broker familiar with trust deeds. Due to the credit crunch the number of lenders in involved in this part of the market has significantly reduced but there are still lenders and the right broker will be familiar with the available products and criteria. Speaking to three or four local brokers might be a good starting point. Kevin or Mark may be able to point you towards specialists in this area that they work with.

In terms of a remortgage what would you estimate the current value of your home to be? Best to be conservative in your valuation as valuers acting for mortgage lenders certainly are being.

Your first and third questions will be better answered by Mark or Kevin and I'm sure they'll be on the forum soon to provide their insight.

I'm sure one of the experts will help.

This seems to be a common problem.

Thanks for your response....

To be honest in this current climate I am not sure if my house would be valued at ?ú130k as it was in 2006..... If I was being conservative I would say the value may even have fallen. I'd say 125k - 130k.

Steven

Hi Steven

Could you confirm that the equity is based on a valuation less the REDEMPTION figures for the mortgage and secured loan at the start of the TD. This should have been obtained by your IP at the start as he shouldn't be guessing the figure.

Also I am unsure on point 3. Can you advise why this finished in April when it started in February and also why you mention about stopping the payments if the TD is complete.

Mark

Thankls again for your response.
We actually had to pretend we where thinking about selling to have a estate agent value our property and submit the valuation letter to them.... If the equity is now less than that on the schedule should that not now be the vaule they are looking for???

With regards to stopping payments. I have a direct debit with them and I was not sure if i did not have to pay them any more money until I can release the equity. The documentation does appear to suggest that I make the payments for 3 years and then release the equity.... If ther equity is not there or unable to be released what happens?

My first payment was in March '06 and the reason for the additional month was that I found myself unemployed in October last year so we aske for a month break until I found my feet.

Steven

Hi Steven

You should write and ask why the Trustee never carried out a valuation. An estate Agents valuation is not sufficient and probably on the high side. You should also ask if the IP has details of the redemption figure for the mortgage and secured loan.

Mark

Mark
Yes this equity figure is based on the valuation less the outstanding mortgage amount and the secured loan... Please note the secured loan is now paid off (sorry didn't mention that).
I have been advised by them that the trust deed is complete this month with only the equity to be paid but I am unsure if they will continue to take the money every month and reduce this from the value of the equity payment....???

Steven

Mark
Sorry to maybe come accross as a little 'thick'.
But when you say details of the redemption figure do you mean the outstanding balance of the mortgage?

Steven

Hi Steven

No problem. Your Trustee cannot guess equity, this needs to be based on actual figures. When you get your mortgage statement, it details the amound due should the mortgage run it's term. The redemption takes account of early settlement penalties etc and is normally higher. This is the figure which should be used.

Any paymehts made over and above the 36 payments will be used in reduction of the equity (hopefully!)

mark

Mark