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Topic starter
03/10/2009 12:29 pm
Hi I'm new to all this was wondering if someone can explain them a wee bit more to me . in the middle of starting one up and just about getting the papers through to sign , the company sent out a valuer to value my property to see what equity is there - what happens with this at the end of my trust deed can someone explain this to me - can they make me sell my property at the end of the trust deed if there was equity in it at the start of the trust deed - please advise
lorna blackwood
04/10/2009 8:59 pm
Hi Marlush,
As long as you have no equity in your home just now then you should be able to pay an "Nominal Fee" normally in the region of ?ú500 Paid by a 3rd party (family member) which means at the end of the TD the IP will take no interest in your home (even if your house has equity at the end of the TD). Basically safeguards you home.
Ask your IP about the nominal fee. They should tell you about this!
Hope this helps.
Regards,
TT
05/10/2009 9:47 am
Hi marlush,
If there is equity in your home you will be contribute a similar sum at some point during the Trust Deed. In practice most people do so towards the end of the Trust Deed.
In times of rising property prices and wide mortgage availability this used to typically be accomplished via a remortgage. In practice a lot of people currently cannot obtain a mortgage for this function now.
If there is equity in your property you will need to think through how you can make this work. For example some people (where there is limited equity) will continue to make additional monthly contributions or, as TT says, have a supportive family member or friend who helps out.
Please be careful to ensure that the position regarding how much equity you may need to contribute is fixed and set out in writing to you. Failing to do this could lead, in a rising property market, to you having to find a lot more money than you expected at the end of the arrangement. There has been a lot of evidence in this forum that some firms do not work on these lines and this can cause major issues later.
TT also mentions a nominal fee of ?ú500 for the property to be exclused from the Trust Deed where there is no equity at the start. Not every firm charges this.
I have to say that I'm a little surprised all of this hasn't been explained to you as yet given that the firm has gone so far as to appoint a valuer. Of course there may be a good reason for this that I'm not aware of.
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Topic starter
05/10/2009 6:08 pm
quote:
Originally posted by TomThumb
Hi Marlush,As long as you have no equity in your home just now then you should be able to pay an "Nominal Fee" normally in the region of ?ú500 Paid by a 3rd party (family member) which means at the end of the TD the IP will take no interest in your home (even if your house has equity at the end of the TD). Basically safeguards you home.
Ask your IP about the nominal fee. They should tell you about this!
Hope this helps.
Regards,
TT
lorna blackwood
Topic starter
05/10/2009 6:11 pm
Hi TT , I think they did tell me this but still didn't really understand it - I do a wee bit better now thanks - just waiting for them to get back to me to see what my property is valued at . thanks again and it does help me
regards marlush
lorna blackwood
Topic starter
05/10/2009 6:16 pm
Hi think they did say something about that but too much to take in and wasn't sure what would happen - just wiating fot them to get back to me with a valuation , TT explained it better for me to understand ana grateful for your help and TT's
regards marlush
quote:
Originally posted by Trust-Deed Assistant
Hi marlush,If there is equity in your home you will be contribute a similar sum at some point during the Trust Deed. In practice most people do so towards the end of the Trust Deed.
In times of rising property prices and wide mortgage availability this used to typically be accomplished via a remortgage. In practice a lot of people currently cannot obtain a mortgage for this function now.
If there is equity in your property you will need to think through how you can make this work. For example some people (where there is limited equity) will continue to make additional monthly contributions or, as TT says, have a supportive family member or friend who helps out.
Please be careful to ensure that the position regarding how much equity you may need to contribute is fixed and set out in writing to you. Failing to do this could lead, in a rising property market, to you having to find a lot more money than you expected at the end of the arrangement. There has been a lot of evidence in this forum that some firms do not work on these lines and this can cause major issues later.
TT also mentions a nominal fee of ?ú500 for the property to be exclused from the Trust Deed where there is no equity at the start. Not every firm charges this.
I have to say that I'm a little surprised all of this hasn't been explained to you as yet given that the firm has gone so far as to appoint a valuer. Of course there may be a good reason for this that I'm not aware of.
lorna blackwood
