Hi debs1979

I think the only way is to discuss things with your trustee. If your property has reduced in value then it's not in the trustees interest to sell the property as the legal and selling costs are likely to wipe out any value.

It may be worthwhile trying to agree to have a further valuation carried out and try and reach a compromise figure.

Mark

Hi Mark,

Thanks for your response, I have been over and over this with my trustee and they say that they will just extend my term on my trust deed until they get back the £15000 which seems very unfair considering at the time of signing I wasnt advised on what happens when the property market crashes- I have been at logger heads with them letters back and forth and they wont come to any reasonable agreement, can you advise me of where I can turn to and seek help on this? Is there a government body that can help? I have already requested my full file and will need to seek further advice? I have copies of all correspondence so far.

Many Thanks

Hi debs1979.

Was this figure of £15000 confirmed and/or agreed at the start of the trust deed?

Would you be prepared to sell the property rather than be stuck in the trust deed for years longer?

Can you access any kind of a lump sum?

The reality is that if your property had not reduced in value you'd still have the same problem of how to raise the cash. Mortgages for people in trust deeds are almost non existent currently, as was also the case in 2009. The decline in value probably puts you in a better position to negotiate.

My plan was to re-mortgage my property which at the time I was advised could be easily done so that my trustee could receive my equity to which I agreed. I cannot sell as I would have nowhere to live for me and my son, I would remortgage now but unfortunately it is not of the same value. I was maybe naive in thinking at the time when they advised me I could remortgage that it would be ok, but my credit rating will be so low remortgaging would be out of the question anyway.

I have tried to negotiate over the last few months and I am no further forward - they will not negotiate or come to any reasonable agreement which is why I have now resulted to asking for advice on this forum, I have no idea where to go to for help?

Also, if I currently sold my property I wouldnt receive what I owe on my mortgage anyway and wouldnt help my current trust deed nightmare as well as being homeless?

Hi debs1979.

I think you were misinformed on the mortgage side of things. It certainly wasn't easy to get equity out of a property that way in 2009 and that hasn't changed.

Sadly that may not help you though if you agreed to the equity position being fixed at the value as it was when your trust deed began. If you're unsure whether you did agree to that you could ask a solicitor to look over the paperwork.

By the way, if the property were sold that would be the end of any responsibility for that sum, even if £15000 were not raised. If the property were sold at a loss the new debt would also go into your trust deed. That might give you something to negotiate with, especially if you could also offer some kind of a lump sum instead of choosing simply to sell the property.

I know you don't want to sell, but wanted to share this information with you in case it helps.

Thanks for your response! I was not aware that if I did sell my property that would be the end of it, I feel as if I have not been given all the information correctly at the time and now and it is exhausting when this was supposed to help my situation.

Also at the time of signing I was advised that council tax arrears were not included? Is this the case? As I am currently paying back council tax arrears that should possibly have been included?

I think I have went with the wrong company and not been given the best advice! It is just stressful, feel I am getting nowhere and it will never end!! If I had known this at the start I would never have entered a Trust Deed.

Many Thanks

Council tax arrears are included debs1979 - you still have to pay your ongoing council tax charge as it falls due, but any arrears before the date of signing the trust deed should be included.

Regarding your house, I'm afraid you may not have a lot of choice if your trustee is refusing to compromise. It may be worth seriously considering just telling the trustee to sell the property instead. They will surely prefer to reach a compromise if you call their bluff on this. Whilst it is possible that they might go ahead and sell the property, if you are right and there is negative equity then I would be very surprised if they did.