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Scottish Trust Deed Forum
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Topic starter
10/09/2011 7:45 pm
Hi,
I really want to sell my flat. It is a small 2 bed flat which I live in with my partner and 2 children, I hate the lack of space and the fact i don't have a garden for my girls to play in. I would love to hand the keys back to the lender and just go and rent somewhere but there would be a shortfall in the mortgage and I am worried that if this was to be included in the TD then at the end the TD may fail due to this. Can this happen? Was thinking about maybe going down the part exchange route as I think this is probably the only way I would get rid of the flat other than voluntary surrendering the property. We had the flat up for rent but never had much interest so took it off the market, plus I don't think it would rent for enough to pay the mortgage & monthly factoring fee.
1) What are the posibilities of me getting accepted for part exchange and another mortgage with me being in a TD?
2) Would the trustee allow this?
My flat has about £7,000/£8,000 in negative equity.
10/09/2011 8:19 pm
Hi dm29.
Wouldn't part-exchanging a property thats in negative equity require a mortgage at over 100% loan-to-value for the new place?
I'm not sure that's viable even without a trust deed.
Would you consider renting?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
10/09/2011 8:47 pm
Hi TDA,
I think it would definately require 100% mortgage. I have heard part exchange being done though, where the company buy the house/flat for the amount needed to pay off the mortgage and also paying half of any deposit needed for the new mortgage.
I would consider and would prefer renting - I just want rid of this flat so much, wish we has never bought the thing in the first place!!
12/09/2011 9:07 am
Hello dm29.
My understanding is that there are extremely few 100% mortgages out there; that's why we read so much about first time buyers finding it more or less impossible to get on the housing ladder without saving for many years.
If the need to move is very strong it might be worth contacting your Trustee to seek their views about how they would react if you were to abandon your current property. If they're prepared to allow you to do this renting a new home may be possible provided that it doesn't jeopardise your trust deed by adding significantly to your monthly costs.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
