Welcome to the forum aveda.

It certainly seems as though you would meet the acceptance criteria for a trust deed.

Could you tell us a little more about your home? In particular, is it jointly owned? Also, what is the source of your valuation figure for the home?

Thanks for reply Yes it's jointly owned,a repossessed home in my area went for £116,000, local estate agent said our house would sell for £125,000 I currently owe £106,000 my debt is £25,000 and my wife owes £15,000 approx.

Hi Aveda & welcome to the forum

A Trust Deed sounds a very feasible option, but can i ask if you are both looking at Trust Deeds, or just yourself?

With regards to equity, a professional valuation should be carried out in order to identify exactly how much equity is in your home. Thereafter, the Trustee would normally ignore a notional sum (approx £5k in most cases) as this is what it would cost if the house were to be sold. The amount of equity the Trustee requires from you should be provided in writing, so there are no surprises at a later date. If it is just you who are thinking about a Trust Deed, then the Trustee would require only your half share of the equity.

eg £15,000 equity; half share = £7,500. Ignoring the first £5k, you would be expected to pay £2,500 for your share of the equity. You could either get a third party to pay this sum to the Trustee, or you could buy it out yourself at the end of the Trust Deed. i.e after the 3 years is up, you could continue with your payments for a further 7 months at £350 to purchase the Trustee's interest in your home.

Whatever you do, get it all in writing first!!

Hope this is of some help to you.

Thanks for your feedback,We are both looking at applying for a trust deed,do you know how much it would cost for a professional valuation?we live in Glasgow.

You might want to approach an insolvency practitioner first, aveda, as the cost of the valuation could be paid as an expense of your trust deed rather than you having to pay this yourself.

Thanks for useful information,still considering all our options.

Just to clarify, I'm not suggesting you would sign a trust deed and then get a valuation done. The valuation should be done first and if a trust deed is not the most suitable option then there would be no obligation to go ahead.

Hi Aveda

I agree with Kevin , there are lots of IP's who do the valuation first, and if it turns out not to be for you, then you are under no obligation. Do your homework until you get one who makes you feel comfortable with the whole process.