Welcome to the forum steve40scotland.

The subject of equity can be confusing, especially where unique circumstances such as yours come into it.

Is there a formal legal agreement in place between your sister and yourself?

If there is, could you describe it a little for us?

Hi and thank you for the welcome.

Yes, basically I have to either pay the amount outstanding (£42000) via a re-mortgage on or before Jan 31St 2018 or earlier if I sell the house,I can not sell the house without paying this amount in full as this was agreed between both lawyers before we got to purchase the house for £42000, after this point we took out another £10000 to have work done to the house, that's why i said we have approx £50000 outstanding.

Hi steve40scotland

The agreement you mention, is it a standard document signed and witnessed or has the agreement been recorded in the land registry or security against the house.

Mark

Hi Mark, No as far as I'm aware it is a standard document that was agreed and done via both my sisters lawyer and my own, we signed it and it was witnessed, does this make a difference ?

Hi steve40scotland

In that case it has no real value as a security. It looks like the property has equity based on your figures as the document would have little value in an insolvency. It is similar to Minutes of Agreement in divorces. One half agrees to transfer their half of the house, but the solicitor relies on the minute of agreement rather than formalising it with a standard security and following an insolvency event, then the Minute of Agreement has little value.

As for your sister having a claim, it depends a lot on the agreement and circumstances.

Mark

Thanks for that Mark, so it seems like the Trust deed is not for me then, its all very confusing, I know on the paperwork i have for the house it claims the sold price was £84000 and if you do and property sold checks it also shows £84000, but I know i only took out a total mortgage of £52000, guess I'll need to look at selling, something i really didn't want to do.

Thanks,

Hi steve

I'm guessing it's only in your name. If so then any equity (ie value less mortgage) would form part of the Trust Deed.

Sorry, but I would have thought the solicitor would have taken the belts and braces approach rather than rely on the 'it will all be fine' philosophy!

Mark

Mark, What do i need to find out then, if it was only a written agreement or if its security against the house ? Would selling the house be my only option going forward given my bad credit rating and is there no way that i could get a trust deed under these circumstances ?

Hi Steve

1st step would be to check the agreement to see if there's anything about having it recorded in the land registry. 2nd get a land registry search for the property to double check.

Its difficult to comment without a full review and knowing the level of debts etc etc. TD valuations will normally be lower than estate agent ones, so depends on lots of things.

Mark

Mark,

Do you know of a web site where I can purchase a land registry search ?

Is there any scenario where I would still be able to enter in to a trust deed given the information I have given you ? I'm starting to struggle as I'm almost at the stage where i have more going out than I do coming in.

Thanks,

Mark, One other thing, if the sale was indeed for £42000, why when i do any search for property prices does it come up for the full £84000 ? Have tried 5 property price sites tonight and they all show £84000 ?
Sorry for bombarding you with questions, just really want to get this sorted, thanks.

Hi Steve

If you're happy to send me the address and postcode & your email address via the contact Mark thing, I'll do the search for you tomorrow, my pleasure.

The sites tend to be open Market values, usually higher than the surveys we need to get.

Best start with the search & agreement & take it from there.

Mark

Hi Stevie

Sorted and looks like it may be good news. I've emailed the search to you.

Told you to start with the search! All that worrying for nothing 🙂

Mark

Hi all

What a great post and can I say what a fantastic gesture Mark in doing the property search. It shows how simple things can be if dealt with properly.

I'm out of my trust deed now, but still lurk now and again and would like to see how this turns out.