Trust Deed - selling property

[stuarty69]

I'm one year into my trust deed and have just received a letter telling me that I will need to make an additional payment because I have some equity in my house. The letter says that if I am unable to raise this money I may be required to sell my house. I jointly own the house with my wife (who doesn't have a trust deed) - can I be forced to sell my house if I can't raise this amount?

[Moonlighter]

Hi Stuarty69

 

Your Trustee has a duty to realise the value of any assets you have, including your half share of the equity in your jointly owned house, but selling someone's house is always a last resort and the Trustee will consider all options to avoid this. The value of the asset should come from a third party, if paid whilst you remain in your Trust Deed.

 

Please don't panic as your Trustee is not readily in a position to sell the house in any event if you only own a half share. Very lengthy legal proceedings would have to be instigated and your Trustee would be in no hurry to do that!

 

Have you agreed a figure for the equity with your Trustee already? Have they given you a period of time during which it should be paid? Perhaps if your wife had any surplus income, she could offer to pay this on a monthly basis over the remaining two (presumably) years of the Trust Deed?

 

Kind regards

 

Moonlighter

[stuarty69]

Thanks for the reply Moonlighter.

 

The Trustee has told me what the figure for the equity will be (just over £7800.) Unfortunately my wife doesn't work - I am disabled and claim DLA - my wife claims Carer's Allowance.

[Dipply75]

Hi Stuarty69

 

did your trustee discuss the equity in your property when you first signed at all? Was there then, or recently, a valuation carried out to determine this - and did they give you any explanation/breakdown of how they came to that figure?

 

sorry to bombard you with questions! have a look at all the info they should have sent you when you signed, detailing your financial status - could be called a Statement of Affairs. This is what they told your creditors your position was - and it should include any equity that could be realised.

 

A year seems a long time to leave something that important!

[stuarty69]

Thanks Dipply75

Sorry for the delay in replying -I have searched through the papers sent to me at the outset and they do mention outstanding equity.

 

I was unaware that a valuation had been carried out - no-one came to the house.

 

My concern is that my wife may be forced to sell her half of our home if I can't raise the money.

[Dipply75]

Hi Stuarty, I know a couple in a similar situation just now.

 

Firstly, did the paperwork just talk about "available equity" with no figures and mentions the amount is still to be advised or determined? Or is there a figure listed at all?

 

second thing is to simply send a letter asking where the valuation figure came from and how they worked out the figure of £7800 (there should be selling costs deducted), ask for a copy of the valuation also.

 

Problem is, the money cannot be seen to have come from you, it must show as coming from a third party. £7800 is a high figure,that should have been talked through with you thoroughly before you signed, and certainly not left a whole year before sorting out!

 

Moonlighter is right though, it is a long process to make your wife sell, an eats into their profits. They will want to avoid that so you will have some bargaining power.

 

Come right back and we'll do our best to help ; )

[Arwen]

Hi Stuarty, I know a couple in a similar situation just now.

 

Firstly, did the paperwork just talk about "available equity" with no figures and mentions the amount is still to be advised or determined? Or is there a figure listed at all?

 

second thing is to simply send a letter asking where the valuation figure came from and how they worked out the figure of £7800 (there should be selling costs deducted), ask for a copy of the valuation also.

 

Problem is, the money cannot be seen to have come from you, it must show as coming from a third party. £7800 is a high figure,that should have been talked through with you thoroughly before you signed, and certainly not left a whole year before sorting out!

 

Moonlighter is right though, it is a long process to make your wife sell, an eats into their profits. They will want to avoid that so you will have some bargaining power.

 

Come right back and we'll do our best to help ; )

 

It may also be helpful (if you can afford it) to get your own valuation figure.Did your Trustee get it properly valued or did they use a desktop or "driveby" valuation?

 

As Dipply says, the equity "must be seen" to come form a 3rd party.That settles the terms of a Trust Deed.Some IP's are quite happy for it to come from someone elses' bank account,if you catch my drift............

 

If not pm me.

[rory32]

If not pm me.

Please read the forum rules Arwen http://www.consumeractiongroup.co.uk/forum/forum-rules-please-read/9-forum-rules-please-read.html

 

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