Hi SkintAlly.

The "service" provided in respect of this £500 payment is a service that is provided by plenty of other trust deed providers without any fee being charged.

Amongst others, Mark, Shona and Kevin's companies don't charge this £500. Where a house has no equity (or negative equity) at the start of the trust deed they can/will put in writing to a client that there will be no further valuation at the end of the trust deed so that everyone knows exactly where they stand.

Thanks Guys,

That makes more sense now as I am fortunate to be dealing with one of the said companies.

Hi, I know this seems to be a completed post but I though I'd add my experience. My husband and I are both in PTD's and have to pay the x2 £500, just like everyone else has mentioned.

The difference with us is that our trustee has not specified a certain timescale, they just said it should be paid before the trust deed is completed but the sooner we pay the money the better. We don't have the money but my parents are moving back to the country next year and have offered to give us the money then.

Hi Mark,

Yes this is in addition to our normal contribution. It is £20.84 each as this is joint names with my husband, although we are not paying the £500 twice as some others have previously mentioned, surely people are only expected to pay once as it is to protect the equity in the house, which there is only 1 of ?

quote:

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Originally posted by Mark McFadyen

Hi me2011

Re the payment, I assume from your post that you are paying this £40 over the next 12+ months or so in addition to your contribution?

Mark

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Hi, I have unsecured debts of £70k credit cards and loans ALL in my name my wife has no liabilities. My salary has been drastically reduced which is where I find myself> presently no defaults all payments made. Our house was valued 4-5 years ago at £250k with a £160k mortgage.With a Trust Deed assuming there is equity in the house and the mortgage is in JOINT names is ALL the equity available to creditors even though my wife has no debt but jointly owns the house. I am exploring DAS but wondered with the level of my debt a Trust Deed is worthwhile considering? Also how often do Protected Trust Deeds get rejected?

Hello Seekinganswers and welcome to the forum.

If you signed a trust deed it would just be your half of the equity of a jointly owned home that would be taken into account. Given the figures involved that could be a huge challenge to raise though unless you're happy to sell the property.

The vast majority of trust deeds do become protected because the organisations that represent the major lenders tell Trustees what their acceptance criteria are.

Hi me2011

Why would creditors not advise that the £42 is contribution as you can afford this and seek the £500 at the end.

Using your trustee's logic and you had equity, would he just accept a monthly payment for equity and reduce your contribution?

Mark

I am led to believe that the value may have come down thereby reducing the equity value but there could be family members that at that time could help. Just that I am struggling for DAS to work. What would I have to pay in the meantime my disposable income?

Is the sum I have to pay my creditors over the three years of the Trust agreed at the outset or is it variable?

Hi again.

You would pay your disposable income over in a trust deed, it will be calculated in a similar way to a DAS contribution.

If your circumstances change your payment would have to be increased or reduced accordingly.

TDA thanks for your 24/7 advice!
Once the valuation is done and 50 % is calculated is taken what happens then is that fixed as the amount due in 36 months and when has it to be paid? would my wife get a remortgage if she was not in a trust deed?

The way that the companies that post here deal with equity, the amount would be fixed at the start of the trust deed. It's often paid at the end but it doesn't have to be and could be done earlier.

It's hard to comment on the remortgage as there are so many criteria attached to whether a mortgage lender will choose to lend to an individual; for example the loan to value or her income compared to the size of the mortgage.

TDA would it be adviseable to get a valuation prior to looking at a Trust Deed or is that done as part of the process?

A valuation would normally done after the trust deed is signed.

If it were me I'd want to at least have some idea of what was in store. An estate agents valuation would be a free way to get an idea but make sure, if you do this, that they base the valuation on a "quick sale".

If you have a trust deed provider in mind you could ask them which surveyors they use. It might be possible to agree that you get a valuation done in advance that could be used for the trust deed if you go ahead. You'd have to pay but some people would consider it to be worthwhile.

Hi Seekinganswers

I agree with everything TDA says regarding your equity. Houses are so important, and the advice always given by the forum is to make sure you get it all in writing before you sign a thing. As a rule I tend to get the valuation done before the Trust Deed is signed -just to avoid any nasty surprises! I would also say that most Trustees are happy to ignore some of the equity (usually around the first £5k). This is because it would cost us that anyway if we were to sell a house. It gives you a little bit help when having to borrow from family.