Welcome to the forum NOGEEGLEE. I'm sorry to hear that you're in this situation.

Does this relate to a trust deed and subsequent sequestration just for you (rather than for both of you)?

How much is it that you're expected to pay in lieu of equity in your home?

Do you agree that this reflects the amount of equity that actually exists in your home (or 50% of that if it's just you)?

Yes,just for me.

It's was at first agreed that to finalise the trust deed,I'd need to pay £13000(calculated 50% share if the house was sold for said amount).
Now they want all of the house sale equity regardless of how much my shares worth..as it might be more depending on the sale price.
Can they force the sale as the house is in joint ownership?

Hi NOGEEGLEE

It's strange that they are going down the sequestration route as the normal process would be to go to court for an action of Division & Sale and there should be no reason why a Trustee under a Trust Deed could not proceed without the sequestration option.

Have you made all of the contribution payments in the trust deed and now need to deal with the equity or are there missed contribution payments in addition to the equity.

If the property is held in joint names ie the property title is in joint names, then the trustee is only entitled to 50% of the net proceeds from sale, unless you transferred one half share to your wife and this is being challenged.

Mark

Hi Mark
Thanks for your response..Yeah made 5 years payment's and been in the TD for 7 years now. thanks G

Hi NOGEEGLEE

It's certainly a strange route to go down. From the information provided, the Trustee can either proceed with the action as Trustee under the Trust Deed, sell the property to obtain one half share of the equity and then pay the dividend and close the Trust Deed down OR petition for sequestration ( not sure on what grounds ) have himself appointed in the sequestration and then seek a further 4 years contribution payments from you under the sequestration.

You should certainly ask the question why there is the requirement to proceed down the sequestration route and ask if he has obtained legal advice which would prohibit them raising the action as Trustee under a Trust Deed.

Mark

Thanks for your help Mark..Will ask the question, thanks again..I'll let you know how I get on.

No problem. I'd be interested in their response as there should be no issues with raising an action of division and sale under a trust deed as far as I'm aware.

Mark

Hi NOGEEGLEE,

I'm sorry to hear of the difficulties you are having with your Trust Deed and the threat of losing your home.

At the outset of your Trust Deed were you advised that if you were not able to raise the £13,000 your house could be sold?

Can you give some clarification on the following:

1. How much were your debts when you entered the Trust Deed?
2. How much have you paid back under the Trust Deed?
3. Can you advise what the current level equity in your property is?

If the Trustee believes that a sale of your property is the most appropriate way forward to raise the equity in the property then they need to look at this and consider it.

Like Mark has advised, I'm not sure why the Trustee is considering Sequestration rather than taking legal action under the Trust Deed to try and sell the property. You should ask the Trustee this question and ensure that you receive their response in writing.

If legal action is taken then the Trustee will appoint a solicitor who will raise legal action against you to try and sell the property. If you decide to defend this action then you can appoint your own solicitor or like you have done, seek advice and assistance from your local CAB. Depending on the area which you live in, there are free legal agencies than can represent you and help to defend the action.

A sheriff will to consider all of the facts in the case and will need to be satisfied with the Trustees argument to grant an order allowing them to sell the house even if it is jointly owned.

The worst case scenario is that the Trustee is successful in the legal action and are able to sell the house.

Hi GRUSHFORD

I meant to add that in the worst case scenario, the courts will take account a number of factors before making a decision, although this normally only involves allowing an extended period of time before the sale. If there are children in the house, this normally will have an impact on a Sheriff's decision as they require to take account of age, schooling etc.

Let us know how you get on, once you hear back from the Trustee.

Mark