@gillianr2, I don't really see how the trustee can stop you surrendering the property to the secured lender for them to sell it. They could seek to come to an agreement with the secured lender that they would sell the property instead if they thought they would be likely to get a better price for it.
At the end of the day,if they aren't happy with any of your husband's actions regarding the property then they could seek to sequestrate him instead, or terminate the trust deed but refuse his discharge, after which he could apply for sequestration himself.
There is no harm in your husband asking them to enable him to move into a sequestration instead, but the trustee would need to take one of the above actions in order for it to happen.

It didn't stop me from surrendering the property. It was just that it took a bit longer. Because I had already signed the TD, the trustee was required to sign off the surrender with the Halifax but they wouldn't. Just meant a formal repo had to be done. As I didn't object to the repo the Halifax told me it should take about 6 months to process but as I've previously mentioned, it took a year.

As Mark has said, any shortfall in the mortgage should then go into the TD

I rather nonsensical position from your trustee there upstream, forcing your secured lender to take unnecessary legal action and incur further costs which just worsens the overall situation. Can't see the point in that whatsoever!

That's what I said! I entered into the TD and surrendered the house at the same time. If I had surrendered it before actually signing the trust deed, it wouldn't have been an issue. Unfortunately, the TD was signed 2 days before I had a meeting to voluntarily surrender the house to the Halifax so, at the meeting, they said they would need the trustee to sign it but apparently KPMG's policy is not to! Didn't matter how much I tried logic.

Thanks Kevin, he has emailed the trustee to ask what their stance would be if he surrendered the property or if Nr sought repossesion so hopefully the assistant at the firm will get back to him soon. Although we know it will take a while for the council to find us a property we would like to have an idea from the trustee what he will do once it does all happen, also to give them some prior warning of it all rather than just springing it on them all of a sudden. My husband is very keen on a private rent house closeby by it is only £25 cheaper a month than our mortgage and although I know that if there are any savings made by moving then the trustee will take it off us for the trust deed at least at the end of the trust deed with the council the rent would be half that if that makes sense.

We did ask the trustee a few months ago when we first enquired about the house if they would consider bankruptcy and they said no they had no intentions of it as bankruptcy would be far more serious than the trust deed but as far as we can see bankruptcy would actually suit or situation better, even if payments did still have to be made they could reasses our situation as ast now with 2 extra kids and see that we cant afford the £201 payment a month.

If we def wanted to go down the route of sequestration and the trustee said no is tehre anything else we could do or would they have the last word on that?

My good ness upstream that sounds like a right carry on, glad it all worked out in the end though but sounds like it took some patience!

Tell me about it......

You cannot apply for sequestration whilst in a protected trust deed. Whilst this is not something I would ordinarily suggest, if your trustee is unwilling to listen then maybe their opinion would change if you were no longer paying your contributions?

Yes that's what I thought Kevin, I thought you would have to cease payments or do something to breach the trust deed before they might listen but we hate the thought of doing thatas we would much rather do everything as amicabilly as possible although the company delaing with his trustee does not seem to bother about that. It's a shame they wont try to come and go with us, we do understand that rules are rules but even with things they could be flexible on they arent, they seem intent on making things very difficult for us.