Thanks for the help, yes I would have thought that the extra years payment should go towards the equity however it appears that all her payments are going towards their fees and the creditor amount is not reducing at all! If anything it appears to be going up!

I sent the letter recorded delivery today asking about the mortgage so I will let you's know as soon as i hear anything

Hi garfield.

Please don't worry about an increasing (or non-reducing) creditor balance, that's likely to be a red herring in this situation.

All payments into the trust deed "pot" are treated in the same way. Your mum meets her obligations to the trust deed. From the money paid over the trustee takes their fees and then the remainder is shared out amongst the creditors.

Increased trust deed fees would be to the direct financial cost of your mum only if she were to be in the position where should could afford to pay over a total sum equivalent to, or greater than, the trust deed fees plus the total debts plus interest on the debts. Therefore, if a deal can be done as you have mentioned, this shouldn't be an issue hopefully.

Hiya,

I finally received a reply from my mothers trust deed this morning. She said that they will consider my offer of £11k to buy out the trustee's vested share in my property (my mothers equity works out about £27k)if I can provide 'written confirmation from a lending institution about what they are able to offer you'.

How do I go about this? Is it a case of just getting a letter from the bank stating the maximum they will lend to me? My problem is that the bank will only offer me a remortgage if I pay off my debts first (Student debts totalling £20k) but if I can get this in writing it is worth a try!

Do you think I am wasting my time? My mother is even against me now as she phoned the trust deed and was told that they can not make her sell the house and that she is discharged after 4 years irregardless of the equity she has! I know this is not correct but how do they get away with giving out incorrect information like this!!!!! argh!!

Thanks

Mortgage lenders will usually provide a "decision in principle", so you would just contact them and make an application for however much you need on whatever terms are available. If they give you the thumbs up then you'd have to speak to the trustee again and get them to give you an assurance in writing that they will discharge their interest in the property upon payment of the agreed sum.

A few hurdles yet then I'm afraid. Also, your mother would have to agree to the plan. Maybe suggest she seeks some independent advice?

Hi all,

Just thought I'd give you a quick update! The Trustee has put my offer of £11k for my mothers share of the equity to the creditors and they have agreed! Woohoo!
So I have now been to the bank, have had a mortgage offer confirmed to me from the bank and this is now at the solicitors waiting for him to sign and seal etc! The trustee has confirmed that as long as the transaction happens simultaneously they are happy. So I am now in the final stages just about and all is looking good.

There is light at the end of the long dark tunnel after all!!

Thanks so much for all your help and advice on the matter.

Garfield x x

Hi garfield

Great news and well done to the Trustee for taking a sensible view on this.

Mark

Good stuff Garfield - fingers crossed there are no last-minute hitches!