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Topic starter
11/05/2010 1:12 pm
Hi all,
I am 8 months into a sequestration and met with my Trustee to discuss equity within my house. This is owned with my wife and has a mortgage and a secured loan with Bank of Scotland and First plus. I think there is negative equity of about ?é?ú20k
We also have an endowment policy which I think is secured to the bank with a value of about ?é?ú9,000.
I tried to discuss cashing in the policy to get my wife her half as I am worried that the bank or Trustee will take this, but the Trustee thinks that the bank won't release this. He also mentioned a think about a carthlic and second security on the policy and have no idea what this is.
Any advice or help would be appreciated.
Martin P
11/05/2010 1:23 pm
Hi magnumpi
There are a couple of points here. If the policy is assigned, it may well be unlikely that the bank will release this as the assignation acts as a security over the policy.
I think your Trustee was talking about Catholic and Secondary Securities, quite complex, but VERY generally in your circumstances, the bank have a claim on the policy as this is assigned, but the secured loan do not. In theory, if you sold the house and the bank were paid in full, then they would release the policy, your wife would get her share and your trustee get your share. However in terms of the above law, the non assigned secured lender can claim title to the policy.
The above may be irrelevent as it is unlikely for the Bank to release this.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
