Hi dm29

Yes, you should be able to sell your home. Your Trustee will need to sign the missives though on concluding the sale and as you say, the equity will go to the creditors.

Mark

Hi Mark,

Thanks for your prompt reply. Would you be able to advise if I could still sell if there was negative equity in the flat? I don't think this will be the case but I think there may only be enough to cover the remainder of the mortgage and any legal fees incurred. Would my creditors have a problem with this? Would they be able to object to the sale if they weren't going to gain anything from it? And would my trust deed practitioner deal with the sale of the property or would I do this myself? I would be more than happy just to let my trust deed practitioner deal with everything with regards to sell, although I wouldn't mind doing it myself either.

Hi dm29

Your mortgage company wont give clear title ( ie not agree to the sale) unless there are enough funds to clear the mortgage. If there was a shortfall in legal fees, estate agents etc, then you would need to meet these costs. Normal creditors will not have a say.

I think they will allow you to deal with the sale, but probably ask that you keep them updated.

Mark

Thanks Mark, that's a great help. Fingers crossed everything goes ok then!

Got in touch with the TDP today. The person dealing with my case has said we need to provide evidence of the type of house/flat were looking to rent, how much the monthly rental will be and the council tax band. While I am more than happy to provide this, I really don't see why I should have to when I have actually not found a property I want to move into. I explained to the person dealing with my case that even if my rent does increase a bit, I would be more than willing to cut back on other things so my monthly contributions to the trust deed would not decrease. I really don't see the problem with me selling up and renting if my monthly conts won't change. As I mentiones before I have another baby on the way and really do need somewhere bigger to stay. If my trust deed said no to me selling the flat, would they have a say if I was to hand it back to the lender? And can they have a say in what type of property I move into, should I go ahead with selling?

Hi dm29.

Your trust deed company cannot stop you from ceasing to pay the mortgage and either handing the keys to the lender, or awaiting repossesion, as far as I'm aware.

Having said that, in these circumstances a shortfall would be more likely from the sale (often such properties are auctioned by the lender). Hopefully one of our experts can explain whether such a shortfall would be included in amongst the other debts in a trust deed in such circumstances.

They also cannot determine what type of rented property that you might move into though I can understand why they might take an interest in trying to ensure that your trust deed payment remains affordable for you.

Hopefully this will not be a major issue anyway. So long as you can sell your property and clear the mortgage and the other costs of the sale, you hand over any surplus equity to the trust deed, and you can maintain your trust deed payments afterwards, it really doesn't seem to be any of their business.

Trust Deed Assistant's understanding is correct, the property could be surrendered and any shortfall would fall in with the trust deed. However, given that this may dilute the dividend available to your other creditors you should really seek clarification of your trustee's position first. They may feel that you would have to be made bankrupt instead in order to be fair to the creditors as a whole.

Hi, I'm in a protected trust deed, could someone please tell me if I can sell my flat and move in with my partner. I would be paying him rent and keep up the same payments to the trust deed company.
Thanks

Hi elaine

The answer would be the same as posted above on the other post.

Your Trustee would require to consent to the sale on the basis of prior agreements if is enough equity to repay the mortgage and selling costs, any equity is likely to go to the creditors.

If you moved in with your partner then you would require to do a revised income and expenditure as you would be contributiong to the costs, so it may be that the contribution amount would increase.

Mark

Welcome to the forum elainet1981.

If you sold the flat would you expect there to be a profit, a loss or not much either way?

There might be around £5k profit which I assume would go to the creditors.

I just didn't want any risk to my partners house if I was living with him. if my contribution amount needed to increase I would ok with that

Hi elaine

There should be no issue with your partner's house if you move in.

Best run it past your trustee and you will need their authority to proceed.

Mark

Thank you for the advice Mark. I will speak with my trustee.

No problem, always glad to help.

Hopefully there will be no issues and it all goes smoothly. If we are to believe the papers, the demand for property is currently outstripping the supply.

Mark