Hi elainet1981

The main purpose of the Trustee is to pay a dividend to creditors in line with the proposal outlined at the start. The Trustee will need to satisfy him/herself that the sale price is reasonable in the current conditions and is not being sold at under value, otherwise they are unable to agree the sale.

It may well be that there is an argumenmt that it cancels any estate agents fee etc, but it will be for the Trustee to decide if the selling price is fair and reasonable.

Mark

Mark

Thanks Mark

I completely understand that the money needs to go to the creditors. My concern is that I'm stuck with a flat I cannot sell because the Trustee expects it to sell at a higher price than I am being offered. I just find it strange that the Trustee may not agree with me selling for £30,000 when I was told in Nov 2011 that the equity in the property was £5000. Surely selling for £30,000 when my redemption is £21,700 provides them with over £5000. Is it not better to get rid a flat I don't want than create more debt by possibly marketing it for who knows how long.

Hi elaine

I agree to a large extent with your point, however a lot will depend on what was agreed at the start in your particular case.

Was the equity figure calculated at the start and an agreement that a specific sum requires to be paid to discharge the Trustee's interest. Has the property been marketed by an estate agent.

From the Trustee's side, he needs to be sure that the offer is a fair reflection of what was agreed at it is not being sold at under value.

Mark

Hi Mark

To be honest I can't remember if there was a figure calculated. It hasn't been marketed so far, it's a private offer I've received.

Elaine

Hi elainet1981.

The trustee does have a duty to ensure it's sold at a fair price... one that it might achieve in the open market.

That open market valuation would usually be "practical" though, not the sort of figure that someone would market it at hopefully and then not get a viewing for six months.

It might be seen as being the price that a willing seller could achieve from a willing buyer reasonably quickly.

I think the devil is in the detail. If there was an agreement on day one to release a specific sum and this can be achieved with the sale, then there should be no problem. If there was not, then the Trustee will need to satisfy himself of best price as detailed above.

Mark

So after my rant about not understanding why the trustee wouldn't go for the sale, I've been told that he'll accept the offer I've been given on my flat. Huge relief. I still havent' been told by Apex how much I actually owe or if the amount they'll receive from the equity of the sale will be enough to clear it, but fingers crossed it will be.

Hi elainet1981.

Equity released from an asset would normally be separate from your contributions funded by income.

How far through your trust deed are you?

Are you asking whether the sale of the property will be sufficient to satisfy your equity responsibilities, or whether it might count towards your normal monthly contributions also?

Hi TDA

My TD was for 48 months, I have 12 months left.

When I called Apex to ask if I could sell my flat and what the procedure would be regarding paying the equity to them, I was told that any equity would be paid to the creditors plus any interest and fee that was owed to Apex. I asked if I was still required to pay the monthly contributions and was told that if the equity covered what I owed then I may not need to pay any more monthly contributions.

I take from your reply above though that this is not the case.

Hi elainet1981

The equity is a separate issue from the contribution. If the sale of the property produces sufficient funds to clear the debt in full, plus interest and Trustee's fees, then the case would be closed and there would be no need to make any further contributions from income.

Mark

I think they're referring to what it would take for your discharge to happen early elainet1981.

If the amount of money that you had paid in total (monthly contributions plus proceeds from the house etc) reached a sum that was equal or greater than the total of...
1 - The amount that you owed at the start of the trust deed +
2 - Interest on those debts +
3 - The fees and costs of the trust deed
... then you could expect to be discharged with your debts fully repaid.

If you total contributions (equity plus monthly contributions thus far) don't add up to the sum mentioned above I think they'll expect you to carry on making the monthly contributions as before.

Best to check with them so that you know where you stand.

Hi elainet1981,

How much debt did you have when you entered into your Trust Deed?

Overlapped by 32 seconds!

Mark

Thats ok that was my understanding too. I just don't know how much I actually still owe, Apex haven't told me so I'm sure if the equity is enough to cover everything.

With regards to the interest you mention above, I was told by RSM Tenon when I signed the TD, that interest was frozen and the creditors could not add anymore interest to the debt. Is this incorrect. I've still been receiving an arrears notice occasionally from one creditor and they appear to have been adding interest every month to a loan.