I think the car thing is right (my husband went in to one bfore the 3000 rules so we need to pay back 6000 and they valued the car at the start of the td instead of the end, grrr).

How did they get a valuation? Did they have an estate agent come out? Ours did and was also in neg equity and we paid 500 incase their was equity at the end of teh trust deed.

Hi scruffy.

Typically a car will only be considered to be an asset that needs to be dealt with in a trust deed if it is worth more than £3000 (and you have a reasonable need to continue using it).

You may prefer to get a full valuation done on your home prior to signing a trust deed. If you appear to be committed to going ahead with a trust deed some firms (including some of those represented here) will instruct that prior to signing so that you know exactly where you stand.

This is especially important if it's "tight" as to whether equity does or does not exist. A desktop valuation is useful, but is really just an indication which could change.

There is no reason why a trust deed firm cannot confirm, before you sign a trust deed, that if no equity exists in your home (and you complete your trust deed obligations) that the home will not later be revalued (when equity may have developed).
Lots of trust deed firms, including those that post here, are happy to do that. We'd suggest not going ahead with any firm unless that is done.

Hi scruffy

I think the car will be fine using the normal rules.

The house however should be valued and a note of the settlement figure obtained. Before you do anything, please obtain in writing that they Trustee has no interest in the property, will not carry out a valuation at the end of the 3 years and will not charge you £500 for the pleasure of not having any equity.

The house is paramount to everything.

Mark

Hi Scruffy,

If you are worried about the car - consider an on-line valuation to see if it is worth less than £3K, thus ensuring that it can be dealt with under the normal rules of abandoning a car.

Agree house should be valued and settlement should be available before signing the Trust Deed. And if as expected that the property is in Negative Equity I agree with Mark make sure you are not being charged a nominal sum (£500) for the "pleasure of not having any equity" Furthermore also ensure that you have, in writing, confirmation that the Trustee has no interest in the Property and the reasoning behind that.

Chris

Hi and thanks to all for your replys...i will make sure that whichever TD company i use that they value my house properly...and in response to trust deed 1....no they didnt use an estate agent...they did an app desk top valuation....think DM hall was mentioned!!!!

To give you an insight how we would normally deal with valuations, scruffy. We would speak to a surveyor and get a desktop estimate first of all, which helps to inform discussions as to whether a trust deed is likely to be suitable or not. If you were then of a mind that you would like to go ahead we would get the proper valuation done before the trust deed is signed. This will normally confirm the desktop figure and we can then go ahead with signing the trust deed.

In the few instances that the valuation comes back differently to the desktop estimate then at least nothing has yet been signed so if a trust deed is no longer appropriate then we can advise on other options instead.