Hello gresgow.

I think any trustee would have to act in this scenario to meet their own obligations.

Do you know how much you are exposed to being asked for from this new asset of yours?

If not, I think finding out is really the best starting point.

Sorry TDA

Could you explain that one for me.

Sorry for my ignorance.

Hi gresgow.

The most you'll have to pay into your trust deed is the amount you owed at the start, some interest on that debt, and the trust deed fees.

Any contributions you have already made will come off that total.

If the asset that has become yours is worth enough, you'll likely be asked to pay over a sum that takes your total contributions to that total.

Your trustee should be able to give you a ballpark figure, from which you'll be able to start thinking about options.

Hi Gresgow,

As Trust Deed Assistant says, we need to establish what is left owing on your Trust Deed before we can advise fully on what will be expected from you.

Selling the house is always our last resort and we will work as best we can to avoid this, but it will depend on the very particular circumstances of your case so a detailed conversation is required. We will look at all the options available to you, regarding your inheritance, and how we can best assist you.

If you can please call us, so we can look into your case. Please call your Relationship Manager as normal or ask to speak directly to one of our Insolvency Practitioners.

Thank you

Hi gresgow

I had an almost identical case and the net result was that the Trust Deed was finalised on the basis that the debts were paid in full, plus 8% interest and the fees to date.

Fortunately the Trust Deed was less than a year old, so the interest and costs were not too high and funds were obtained from family to achieve this.

Mark

Hi All

Thanks for the replies.

I contacted my Relationship Manager this morning and have arranged for a meeting next Monday to discuss what my options are.

I had explained to my Relationship Manager that my main aim was to remain in the house if possible and that I was fully prepared to pay my debts in full plus any additional charges that would accrue over a period of time.

From memory my debts were in the region of £11500 and to date I have made payments totalling £4000. I think the trust deed fees were approximately £3500 - £4000.

I will keep you up to date on how I get on.

Hi all

Well, I had my meeting with my trust deed firm. My trustee wasn't able to attend and the meeting was with my Relationship Manager.

My options it would seem are pretty limited. My chances of securing finance to clear my trust deed are pretty non-existent, I do not wish to ask family/friends to help out as I would rather not make my TD public and I would rather not sell the family home to settle the TD.

The possibility was raised that the TD could be extended to 5 years in total to settle the debts in full plus interest plus costs. My Relationship Manager seemed reluctant to go down this road but I am keen on this option. I have asked my Relationship Manager to give me some numbers to see if this would be possible and I am quite prepared to scrimp and save over the next 3 years in order to make this achievable. I know that this may sound a little risky but it is the road that I want to take. Surely if this is my wish and my IP can extend the TD to 5 years in total then this should be OK?

Hi gresgow.

That may be OK, it's just a case of trying to persuade your trustee around to the same view.

Do you know how much you'd need to pay each month to make this work? You'll probably need to be in a position to demonstrate fully that this is workable in reality.

It might be possible to take out a loan secured on the property, gresgow. I'm not saying this is what you should do, as I imagine the interest rate might be pretty horrendous, but it might be an option and shouldn't just be ruled out. Given that the house is unencumbered at the moment (ie has no mortgage) then borrowing a relatively small proportion of its value might well be possible.

That is a good point Kevin.

My understanding is that, because it's unencumbered (no mortgage) right now it would need to be a mortgage (1st charge) rather than a secured loan (2nd charge).

That can mean the amount borrowed would potentially need to be higher than a secured loan just for the amount required.

There is lending availability for people in trust deeds where the loan-to-value ratio of the lending is very low (as it is here). Of course, it still needs to be done affordably.

Thanks Kevin and TDA for your comments. My contributions would go up to approx £420 - £440 a month which is quite a lot. My reasons for favouring this option are that I have never done the whole mortgage/remortgage thing before and it all sounds a bit scary. Also I figure that doing it this way I would clear the TD in just over 3 years time as opposed to a longer period for the remortgate option which would be what I would look for to keep monthly repayments down.

I have given some figures to my Relationship Manager and yes things would be tight but I suppose the incentive of being able to keep the family home and clear my TD in just over 3 years are what would drive me to ensure that I make this work.

Ah well potentially bread and water for me for the next 3 and a bit years

Hi gresgow.

Why not have a chat with a mortgage broker as well for the sake of comparison?

It's their job to demystify this process for their clients.

Yes, speaking to someone cannot do any harm, and may provide an option for you.