Has a valuation been done either at the start or now? How was this figure arrived at. I cannot see many properties having gained £13k in value over the last 3 years?

They have seemingly done a house valuation on the house. Not to my knowledge it must have been a drive by. Because I no longer have the early repayment figure on my mortgage as its not on a fixed rate and is on a variable rate with my mortgage.

Hello tompie1980.

Your trust deed firm has no option other than to deal with equity in your property and also the arrears resulting from the backpay that wasn't paid into the trust deed.

The area that you may wish to look at is challenging the valuation of your home if you believe that the most recent valuation is incorrect.

A starting point might be to get a couple of local estate agents to tell you what the property could be sold for if it needed to be sold quickly.

If these valuations fall below the one that your trust deed firm is now relying upon you may wish to inform them that you believe their valuation is flawed, and tell them that you'll be instructing another valuation to prove this. You could then organise for a formal valuation to take place; the costs are likely to be worth it if you're correct and the trust deed firm accept that the original figure was inflated.

Hi tompie1980

I would agree with TDA - you should get a 2nd opinion on the value of your home, it is the only way to reduce the equity they require.
The Trustee cannot ignore the back pay as you chose to clear a post Trust Deed debt in full, whilst the creditors who were included in the Trust Deed, had to write off some of your debt, and they only do this as all creditors are treated equally. Sorry.

I will do that then. I do not have a problem paying the backpay. its the equity on the house i have the problem with paying. I am offering them £6000 to end the trust dead and thats more than the £4000 arrears. I am putting a letter together regarding this and wish to send it to them but do I send it to the Trustee or Wilson Andrews. On this letter it states that I'd even be willing to continue the Trust deed for another year with contributions at £150 per month and then come the end of the year will give them £8000 in cash. I want to work this out with them and I am trying..

Hi tompie1980.

They're required to collect the full value of the equity. There may be exceptions, for example where a lower offer is made and the costs involved in a forced sale of the property would be excessive, but that decision would be made because it's in the best commercial interests of the creditors.

The first step is to confirm whether or not their view of the equity in the house is correct. If you have proof that it's lower then you will have an argument to make to them.

The second step may be some negotiation. If you choose to do this I'd suggest that you focus on an argument that what you are offering is in the best interests of your creditors.

Any offer could be a combination of a lump sum and extra payments if you wanted it to be. I wouldn't do this until you have a view on the equity level though and have made your argument on that point if necessary.

I'm going through the internet to get some figures if I had to sell my home fast. The numbers that are coming back are only enough to pay off my mortgage and thats it.
If come the end of the trust deed in February 2011 I may just hand the keys to them and leave my home and they can then sell it or do with it as they please.
This would then mean I have nothing and have no equity or anything..

Hi tompie1980.

If you're happy to dispose of your home I'd suggest that you simply talk this through with the trust deed firm. The sale of it would end any equity responsibilities that you have. If they don't think they'll generate a surplus from selling it they may not wish to do so anyway and the equity could become a non-issue.

Internet-based valuations may be of limited value to you in making a case to your trust deed firm. It might be worth asking local estate agents what they could sell your home for quite quickly; that could carry a bit more weight.

As TDA says, don't rely on internet valuations they are very unreliable. You can get a drive-by valuation for £65, and you will have credibilty to bargain with. Maybe you should try and then negotiating with your Trustee before you walk away from the house. You could always give your Trustee your best offer and tell them your only other option is to walk away from the house....the Trustee does not want to sell a house unless they know there is reasonable equity, and it make your offer more realistic.

Thanks again for your advice. I have arranged local estate agents to come and give me free valuations on the house. If need be then I will pay for a full one to be done. Yes I don't want to sell my house but cant see any other option. I feel that my offer of continuing the trust deed for another year pay £1800 contributions and at the end pay in a lump sum of £8000 from my family is a reasonable offer.
I will put all this in a letter but am unsure of who I sent this too..

Hi tompie1980.

I'd suggest writing to your Trustee personally.

If you can demonstrate that the equity in the house is £6000 or less then your offer may well be acceptable. That way £1800 of contributions and an £8000 sum from family would cover the equity and the arrears on your trust deed.

I'd hold off doing this until you can make an argument about the equity you believe is in the house based upon the evidence that you have obtained.