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Topic starter
02/09/2024 11:51 am
Hi
Looking for some info on what percentage does the equity needs to be where trustee won't ask for it at the end of a TDÂ
Or if someone has a figure? all i can find online is if equity is 'substantial'
I am trying to work out if TD or DAS are my best optionsÂ
for reference,Â
debt is £30k unsecured debtÂ
equity is home is around £45k
thanks
02/09/2024 6:00 pm
I don't think there is a set percentage Layercake. I have £2,500 to pay at end of mine. It's far lower than I was expecting though, so there might not be as much equity as you think.
02/09/2024 8:45 pm
Hi Layercake, the equity in a property should be dealt with at the start of a Trust Deed. Any interest and 'buy-out' being dealt with up front. It used to be a thing where if people's properties shot up in value over the course of their TDs that some Trustees came after this new equity. That's not allowed anymore as far as I am aware.
So if you're thinking about entering a TD, its the equity now that's relevant, not at the end of the TD. Couple of questions. Is the equity all yours or is the property jointly owned. Could the property be remortgaged.Â
Also, Trustees won't work on percentages. But £ figures. If there's any equity at all, they will want to see some form of contribution towards this.
