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Scottish Trust Deed Forum
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Topic starter
12/02/2022 9:50 am
Hi i am looking for some help. This may be long.
I took trust deed out February 2021 so have been in it a year now. At the time my jointly owned property was valued at £115000 and only approx £75000 left on mortgage. My total debt was £24000 so more than my share of the equity (as half is obviously my partners).
In my trust deed i had agreed to pay an additional 2 years totally £3500 roughly to cover the interest as such in my property so my trust deed was 6 years. I agreed to all this.
However, now a year down the line i am pregnant and we are wanting to move house. My house has now been valued at £145000 with a remaining mortgage of £80000 (interest and mortgage holiday during covid) meaning if the house sells for the much hoped £150000 we have £70000 equity. I am curious about the process here. Now for the questions… i assume my lawyer would deal with the trustee and my partner would still recieve his share of £35000 (50%) and my £35000 how would this be used? I got a settlement figure from the trustee and it was £34900 (£24000 original debt and fees on top of this) or there abouts so would they take my full £35000 and clear my trust deed? And that would be me free? I need to know that they cannot take more than they are entitled to? For example say my house sold for £160000 and we then cleared 80k mortgage and had £40000 equity each, would they take my full £40000 even although my settlement is £34900??
I have asked for this information from trust deed people however it is clueless people in a call centre/office who have given me various incorrect information.
Is there any reason why my trustee would disallow the sale? Surely they would allow it if it was going to clear my debt?
What are the chances of a lawyer NOT picking up on an inhibition?
Does the fact i agreed to pay an extra 2 years to cover my equity make me safe to sell? And i have also read the equity is fixed at the start of trust deed so if house value goes up it cant change? Is this purely to say they cant make you sell in a few years if your equity gets more due to rising house prices?
It is ALOT of question but any help would be greatly appreciated.
12/02/2022 12:35 pm
Welcome to the trust deed forum caitling67.
The first thing to understand is that a number of things here work on the assumption that your home will not be sold. This includes the two year extention of the trust deed, equity being fixed at the start etc. These things become irrelevant if the home is actually sold.
You will not be able to sell the home without your trustee's consent.
Your partner's share of any equity from a sale is theirs and will not be taken by your trustee.
Your share of the equity can be used to repay all of the following:
1 - The total debt owed at the start of your trust deed.
2 - Interest on those debts.
3 - Your trustee's fees.
Any money you have already paid will count towards the total from the three things mentioned above.
The actual amount you'd need to pay is a bit of a moving target. Interest is adding up on the debt. Your trustee's fees probably include a percentage element based upon how much they collect in. Your continued monthly payments are reducing the total amount.
If the total amount paid covers the three things mentioned above, you can be discharged from your trust deed. Any surplus amount collected in would be returned to you.
You'll need to work with your trustee to get their consent for a sale to happen, to understand the settlement figure at the point of sale, and to understand whether any particular sale price will be sufficient to bring your trust deed to an early finish.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
14/02/2022 9:39 am
In addition to TDA's excellent summary, I would just say that I can see no reason why your Trustee would not allow the sale of the property. It would actually mean a higher return for creditors so I am sure they would be very happy to agree to it.
You also ask what are the chances of a lawyer not picking up an inhibition. I would say very low as the check is a necessary part of the process.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
16/02/2022 12:47 pm
Thank you for both replies. I have paid my trust deed off in full to allow the sale of my house. Thank you
