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Scottish Trust Deed Forum
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Topic starter
07/02/2012 7:31 am
Hi folks! I've just joined, so forgive the naivity.
My wife and I entered into separate trust deeds with an inception date of 10th March 2009 and we shall be making our 36th monthly repayment next month.
The statement of affairs at inception indicates that each of us has agreed to extend the repayments by 23 months and 20 months respectively, to "buy out the trustee's interest in the property".
At inception, a (purely notional) valuation was made on the property with a resultant sum shown as equity, after deuction of our mortgage.
Bearing in mind the market conditions since inception, it may well be that a formal valuation would give rise to a reduced or even a negative equity and I'm not sure how to proceed.
Clearly we would want to limit or eliminate any need for extended repayments beyond the 36 months and matters have been further complicated by health problems. In my case, I have been retired for a number of years and I am now on chemotherapy medication for a blood disorder and my wife has had significant absence from work due to ill health (the latest episode was hospitalisation for one week with pneumonia, followed by a recuperation period of some weeks) which has resulted in a formal interview with HR management which may result in an enforced reduction in working ours or possibly even losing her job altogether.
My main concern is how we might reasonably proceed in these changed circumstances. Whether for example we might via the trustee arrange for a formal valuation with a view to possibly limiting or eliminating further repayments beyond the 3 years.
I'm conscious that the above may appear to read like a sob story but I need to make the picture as clear as possible so that I can enlist you professional advice on this.
Can you help??
07/02/2012 7:39 am
Hi bobg
Firstly, welcome to the forum.
Can you tell me if a formal valuation was carried out. It would appear quite unusual to have an extension of this specific level built in without having a precise equity figure.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
07/02/2012 9:32 am
Hi bobg.
It does seem like the nature of your original agreement is going to be important here.
If a valuation was done, and you agreed to pay an amount fixed at that time as part of your trust deed, then any decline in equity may not be entirely relevant.
If that's not the case, it might be that your trust deed firm would look to revalue the property.
I think the best thing to do will be to contact your Trustee and confirm the nature of your original agreement.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
07/02/2012 9:41 am
Hi Mark.Many thanks for your swift initial response.
To my knowledge, no formal valuation has been undertaken. I recall at the first visit of the Wylie & Bisset rep. being asked, informally, what I considered the house was then worth. I thought around £200000 and the next thing I saw on the matter was the entry on the Statement of Affairs which shows an estimated valuation of £210000, less the then
mortgage of £180000(interest only), leaving an estimate of £30000 equity,which was split 50:50 at £15000 each between my wife and me. There was also a note on the statement declaring
that "the valuation is based on the average house price of the area" and that "a formal valuation will be carried out in due course".
Because of the W & B connection, I have today also contacted Chris Wardle and referred him to my forum post.
07/02/2012 9:54 am
I think that's a good move bobg.
I'm sure they'll be in touch soon to help clarify everything.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
07/02/2012 9:57 am
Thanks Amy - fingers crossed!
Bob.
Topic starter
08/02/2012 10:15 am
Hi all!
I heard from Stephen of Wylie & Bisset this morning. He is clearly on my case and has already discussed potential solutions to our problems with his colleague Chris Wardle. I am delighted at the prompt response and I am optimistic about a satisfactory solution all round. I'll keep you posted.
BobG
08/02/2012 11:32 am
That's excellent bobg.
There are bound to be questions that arise during some trust deeds and also matters requiring clarification from time to time.
It's good to hear that your trust deed firm are looking into this proactively and promptly.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
