Welcome to the forum bairns76.

How much equity is there in your property?

How much are you being asked to pay over?

How much have you been paying into your trust deed each month?

Sorry to answer your question with questions, but it will help us to provide you with useful information.

Hi bairns76

Were the figures on the equity available at the start of the trust deed.

Mark

Wow. Unfortunately still people signing up without knowing the full ins and outs of what they are signing up for.

Paul

Hi bairns76,

Well done on reaching this point and making all of your agreed contributions.

TDA has asked some really good questions and from this we can then provide some advice.

If you're unsure of the answers, you can contact your Trustee/Relationship Manager and ask them for this information.

As Mark said, can you recall what the agreement was at the start of your Trust Deed or what the equity was?

It still surprises me when I read a post like thing when it comes to property or any other assets about how in the dark people can be.

Thanks for the responses,
The trustee had the property valued at significantly more than the valuation provided by myself at the start of the Trust Deed, hence the request for equity release.

The initial debt was 80k, i have paid 30k as agreed. The equity in my property will be 60-80k depending on a new valuation.

Hi bairns76.

Are you the sole owner of the property?

I am the sole owner, yes.

Hi bairns76.

It does sound as though your trustee has no option other than to require the "release" of equity from your home.

"Equity release" is a bit of a misnomer these days. It used to be the case (before the credit crunch) that people could get hold of 90% and 95% loan-to-value mortgages to get most of the equity out of their homes for their trust deeds.

That kind of lending is a thing of the past.

Unfortunately that will not relieve you of the requirement to raise the money somehow.

I'd suggest asking your trustee how much is needed and what options for raising it that they will consider.

I believe there is also the option to make an offer of a payment to the trustee?? they will accept a partial payment to creditors. Do you have any info on this?
Getting into yourself into further debt seems to be a very strange way of getting out of debt!

Hi bairns76.

I'm not sure that mortgage lenders will allow you to get further into debt, which may be an even bigger issue in the circumstances.

If you have the ability to raise a lump sum somehow you could propose that to your trustee. They'll need to assess whether its the best option for your creditors.

Was your initial valuation done by a chartered surveyor, bairns76? How come there is such a big difference between that and the valuation they now have? I can't believe that many properties have gone up much in value of the last few years - often the opposite in fact.

Different companies giving different valuations, approx. 6 months apart. Unfortunately the higher valuation is probably the correct one and still somewhat under current property valuation.
I'm going to see what kind of offer I can make to the creditors and get them to accept, and of course over what kind of timescale I can pay.