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Scottish Trust Deed Forum
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Topic starter
26/02/2011 5:39 am
Hi I'm nearly coming to the end of my TD (sept 2011). At the time of my signing to a TD (3 years ago) they valued my flat and said there was altogether with my car a ?ú4500 positive equity in my flat. Can I request another valuation at the end of the TD?? As there has been a credit crunch since the first valuation, and I know for a fact my flat is worth probably ?ú10000 less (due to age and house prices plumeting). I did phone Begbies Traynor and ask the lady who deals with my TD, but she said I had to pay the full amount what was agreed at the start. I then explained about the credit crunch/house price fall (which hasn't happened before lately)and she wasn't quite sure but will ask her manager.
Personally I think the credit crunch should be taken into account and re-evaluations should be allowed. Thanks..
26/02/2011 9:21 am
Hi tangoecho
It is a very good point and demonstrates why there is a need for clarity on certain matters.
I know a large number of firms who value property at the start and also at the end. You would think this to be good practice, however they always go for the higher figure ie ?ú10k equity at the start, ?ú5k at the end due to the downturn. Guess what figure they look for? Biggest problem arose when a few years back the figure had increased at the end. That may be the problem, people would argue if it increased, but be happy if it decreased.
That said, creditors agree to a proposal for repayment of a percentage of the debt in a Trust Deed at the start and the individual's obligation is to meet that number.
I've probably asked more than I've answered!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
27/02/2011 12:03 pm
Thanks for the info Mark.
I will just have to wait and see what happens. I will fight for a new valuation though. If I had to pay the ?ú4500 at the end and they forced the sale of my flat to get it, it would be a waste of time as I have a mortgage and a secured loan on the property. There would be nothing left for the TD.
27/02/2011 12:49 pm
Hi tangoecho.
If there is no equity nobody is going to force a sale of the property.
The key question is whether or not the trust deed provider will require the equity that existed at the start of the trust deed to be paid by other means.
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