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Scottish Trust Deed Forum
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Topic starter
31/01/2011 10:46 am
I entered into a Trust Deed in Jan 2010 and pay weekly contributions to it. Prior to entering I had to get a valuation carried out on my house. Having worked in the Property industry for years previously I had a rough idea how much the house was worth, I felt between ?ú160 - ?ú165k however the valuation came back at ?ú180! I was shocked and paid for another valuation which came back at ?ú165k however the trustee could only take the difference which was ?ú172,500! Mortgage was sitting at ?ú160k. The debt was due to my husbands company struggling with financial difficulties therefore I took loans and overdrafts etc to try to help and we also took the equity out of our home in order to try to stay afloat. This all crumbled and my husband was made bankrupt in dec 2009. As part of his bankruptcy our home was again valued in July 2010 and this valuation by a 3rd surveying company came in at ?ú160K. My beef is that due to the original high valuation of our home by the 1st company my family have to find ?ú6600 over the next 3 yrs to pay off this non existant equity! As such they have agreed to try and pay ?ú2200 each february to the trustees over next 3yrs but I STILL feel its an unfair amount and I feel so helpless to do anything about this. Am I stuck with this or is there anything I can do to relieve the burden we have put on our sons to bail me out?[:(]
31/01/2011 10:59 am
Hi Mands and welcome to the trust deed forum.
I guess the problem with a valuation is that it is based upon the opinion of the valuer and therefore variations will be evident in valuations provided.
Having siad that, the difference between your valuation and that used for the bankruptcy, compared to the valuation sourced by your Trustee, does seem to be unusually large.
Have you tackled your trust deed provider with the figure provided for your husband's bankruptcy?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
31/01/2011 11:21 am
Hi - thanks for helping here. Yes I did mention it last week to them and the reply was - as you have said - that valuations are opinions. I agree with this as I remember this being a problem when I worked within the estate agency business but the difference is really marked and to me has given a false figure of the real equity of my house. Is it down to the trustees to decide whether to re-access this or do I just have to accept the situation?
31/01/2011 11:27 am
Hi Maria
I think the problem that you are going to have is that I presume you proceeded with the Trust Deed on the basis that your property was valued at ?ú172,500. Have you seen a copy of the initial paperwork that was sent to your creditors? If not I would suggest that you ask for a copy of it. If the proposals to your creditors stated that you had to realise in the sum of ?ú6k there probably isn't much that you can do about it.
Sorry, I realise that this probably isn't the answer that you are looking for!
Julie
Julie is not currently posting in the Trust-Deed.co.uk forum.
Topic starter
31/01/2011 11:37 am
Thanks again - I will fish out paperwork and check this out. As much as it galls me I think I will just have to accept this outcome although I find it very hard. I feel so responsible that my sons are having to bail me out and pay this money when I know that if I had to sell my house it would NEVER realise ?ú172,500! In this climate it would struggle to get the ?ú160k of the final valuation! Hands are tied I think though! Thanks again. I will come back to you once I check out paperwork.
Topic starter
31/01/2011 11:52 am
Hi Julie - have just fished out the paperwork and you are right the proposals do state that the my assets were valued at ?ú172,500 and therefore ?ú6k will need to be raised by a 3rd party in order to secure the house. Looks like I am stuck with it!
