Welcome to the trust deed forum pm1969.

When the protected trust deed began was there calculated to be any equity in your home?

At the current time do you think there would be any kind of surplus or profit if the house is sold?

Hi

Their was very little equity in the house at the start of the trust deed but I believe their to be at £15k now.

quote:

---

Originally posted by Trust Deed Assistant

Welcome to the trust deed forum pm1969.

When the protected trust deed began was there calculated to be any equity in your home?

At the current time do you think there would be any kind of surplus or profit if the house is sold?

---

Hi pm1969

This will depend entirely on what was agreed with the Trustee at the start. Was any agreement reached?

Mark

Hi pm1969.

As Mark says, what happened at the start of the trust deed might be very important.

Were you told you would (or might) need to raise an extra sum of money for equity?

Why do you think equity has developed? Is it down to a reducing mortgage balance, property values in your area increasing, or perhaps even a mixture of the two?

I wasnt told that i might have to raise extra money, the reason I feel there is equity now is that when our property was assessed the value they gave was much lower than the value of houses in the area and now the mortgage value has reduced and watching the market in the area I believe their to be extra equity.

quote:

---

Originally posted by Trust Deed Assistant

Hi pm1969.

As Mark says, what happened at the start of the trust deed might be very important.

Were you told you would (or might) need to raise an extra sum of money for equity?

Why do you think equity has developed? Is it down to a reducing mortgage balance, property values in your area increasing, or perhaps even a mixture of the two?

---

Hi pm1969. If you sell the property during the trust deed then you are likely to find that the trustee will require you to pay across your share of any of the proceeds after the mortgage and selling costs are paid, regardless of whether the equity existed at the time of signing or not.

Hi pm1969

I think it is important that you speak to your Trustee and find out exactly what the position is with the equity. It may well be that there is none and that is the end of the matter or there may be equity to be dealt with.

However the Trustee will need to consent to the sale of the property irrespective of the above and may seek any net equity following its sale. Only thay can fully confirm what their position would be.

Mark

quote:

---

Originally posted by Mark McFadyen

Hi pm1969
What i was worried about was that i would be forced into bankruptcy. I just wasnt sure what happens if you sell your house whilst in a trust deed. I will speak to the Trustee.

I think it is important that you speak to your Trustee and find out exactly what the position is with the equity. It may well be that there is none and that is the end of the matter or there may be equity to be dealt with.

However the Trustee will need to consent to the sale of the property irrespective of the above and may seek any net equity following its sale. Only thay can fully confirm what their position would be.

Mark

---

Sorry got a bit muddled there, what it shoudlve read was -

What i was worried about was that i would be forced into bankruptcy. I just wasnt sure what happens if you sell your house whilst in a trust deed. I will speak to the Trustee.

I have just managed to dig out an email sent to me from the Trustee regarding my property. It reads ".....once the £500 third party payment has been made, the trustee has no further interest in the future equity in your property. Those bullet points on the letter come directly from the trust deed regulations and are signed off in ALL cases, whether someone owns property or not, so it's very important that the circumstances of the case are....." I did pay the £500 so does this means that if i manage to sell the property and have enough equity left over this will clear the trust deed? I am trying to work out the amount i will have to pay, am i right in thinking that the amount to pay will just be my monthly payments multiplied by the four years the trust deed is over??

Hi pm1969.

I'm not sure whether that £500 covers a circumstance where the property is actually sold and a real surplus is created (rather than a notional surplus where a property hasn't been sold).

Perhaps one of our experts could confirm...

Hi pm1969

I do not think you can pay of the trust deed directly. As I understand this, it could be paid out from a third party.
The total sum payable is not necessarily the outstanding balance of payments. It is up to the trustee to offer the creditors a figure that he feels is in their best interests. There are a few other threads about this on the forum.

In my case, the trustee insisted on the outstanding payments plus £1000. This brought it up to a pence/£ figure he felt was fair to the creditors. My understanding, after asking here and elsewhere, is that there are no hard and fast rules for this.

The situation regarding the £500 fee is interesting. I think this only stops the trustee from forcing you to sell or raise any equity in your property.

Best of luck