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charlyroy
Just Joined
2 Posts |
 Posted - 19 November 2009 : 10:48:14
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Hi there,
Im thinking about taking out a trust deed with moneytalkscotland. I am a homeowner with no equity at the moment. Been told that if a third party pays a fee of £500 within the first 6mths of the trust deed, by the end of it, if my house hase made some equity, my creditors cant touch it. Is this correct ?
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Mark McFadyen
Trust Deed Expert
620 Posts |
Posted - 19 November 2009 : 11:52:06
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Hi Charlieroy
Who? I'm not aware of moneytalkscotland and on checking their site, I suspect they will pass your details to a real Insolvency Practice.
I'd be a bit wary of the £500 and especially the 6 month deadline. Best idea would be to ask them which part of the Trust Deed legislation or guidance states this.
The subject of the £500 has come up a number of times and the guidance in sequestration is:
If there is little or no equity, can title be transferred for a nominal sum?
The Accountant recommends that the trustee should not wait for it to appreciate in value unless there is no co operation from the debtor, spouse or co owner. If the debtor does not wish a formal re conveyance the trustee should consider issuing the letter at Form 22 of the Statutory Instruments formally abandoning his interest.
Mark |
To have me prepare a Scottish Trust Deed for you please click here:
http://www.trust-deed.co.uk/contact_mark_mcfadyen.php |
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charlyroy
Just Joined
2 Posts |
Posted - 19 November 2009 : 12:06:35
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sorry mark, im a bit dense, does that mean that if i have equity at the end of the three years the only way the creditiors would touch it would be if i lapsed on the trust deed ? Also could you explain the title transfer for a nominal sum
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Mark McFadyen
Trust Deed Expert
620 Posts |
Posted - 19 November 2009 : 13:03:37
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Hi Charlyroy
no, in our cases if there is no equity at the start, then that's the end of it and we report that to creditors.
We don't do 2nd valuations at the end. As I always say on this forum, where there's property, get it in writing before proceeding.
Hope this helps
Mark |
To have me prepare a Scottish Trust Deed for you please click here:
http://www.trust-deed.co.uk/contact_mark_mcfadyen.php |
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mazda 5
Regular Contributor
23 Posts |
Posted - 19 November 2009 : 19:50:55
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Hi & welcome to the site Charlyroy
Iam just about to enter into a trust deed for the first time, and beleive me it can be quite scary when it comes to who to use. After hearing a few horror stories (including the company i was about to use) from some members on this forum i decided to ask Mark to go ahead and start up my TD. I think it would be an idea to use either
Mark or even Kevin, just click on one of their names at the side panel and give them your details. That is what i did & had my first meeting with Mark last week,he will answer any questions that you need to know, they are no up front fees. also remember you are not alone out there, use this site & ask for anything you need to know about trust deeds. |
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Trust Deed Assistant
Trust Deed Expert
963 Posts |
Posted - 19 November 2009 : 21:20:42
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Thank you for adding your thoughts Mazda 5.
While this forum naturally attracts feedback from people who have had issues with their Trust Deeds it is really important to remember that there are some very good Trust Deed professionals out there. It's also important to remember that most people who enter Trust Deeds (having received good initial advice)it serves as a fantastic way to deal with overwhelming debts.
Charlyroy, whoever you choose to work with I wish you the best of luck and also want to confirm Mazda 5's comment that everyone involved in the forum will do their best to answer any questions that you have. |
Scottish Trust Deed Forum Web-Facilitator.
To get personal advice on Scottish Trust Deeds please add your question to this forum, call 0800 0437201, or complete the "Contact Us" form available on the left-hand menu. |
Edited by - Trust Deed Assistant on 19 November 2009 21:21:22 |
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Kevin Mapstone
Trust Deed Expert
414 Posts |
Posted - 23 November 2009 : 11:09:23
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On the subject of properties with little or no equity, it seems that practice varies across different insolvency practitioners. Indeed, it seems the firm that I work for looks at this slightly differently to Mark's.
We do suggest that people may wish to consider organising for a third party to pay a nominal sum (usually £500) into the trust deed, though do not insist that this be done. This is because having spoken to creditors representatives previously it has been made clear to us that they do prefer to see this kind of transaction taking place and may look more favourably at a trust deed proposal if such a payment is coming in for the benefit of creditors. In a strange way, I find that people often prefer to make this kind of arrangement as it puts their mind at ease if money has actually been paid over in respect of their property.
As Mark says though, there is no legislative requirement to pay this, and the equity position should certainly only be dealt with at the start of a trust deed - not revisited at the end - unless it is agreed that way for some reason before the trust deed is signed. |
To have me prepare a Scottish Trust Deed for you please click here: http://www.trust-deed.co.uk/contact_kevin_mapstone.php |
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Dened
New Member
6 Posts |
Posted - 04 May 2010 : 19:28:24
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Hi
Sorry for being a bit silly but am i right in saying that at the end of your trust deed creditors are not allowed to have your property revalued or take any equity that may be in your property a that time from you. Can the creditors sue and force you into a sell then?
DenEd |
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Trust Deed Assistant
Trust Deed Expert
963 Posts |
Posted - 05 May 2010 : 09:42:19
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Hello Dened,
What we advocate is that (if you decide to go ahead with a Trust Deed) you choose a Trust Deed company that handles equity in a certain way.
The companies that we feature on this site, and some others, will set out how any equity in your home will be dealt with before you sign a Trust Deed.
Upon signing the Trust Deed they will organise a valuation of your home. If there is equity (based upon this valuation) the amount that you need to pay over in lieu of the equity later in the Trust Deed will be based upon this figure. The creditors will have been informed that this is the intended way of dealing with any equity.
For that reason there will be no need for a further valuation to take place.
If your Trust Deed has become a Protected Trust Deed creditors cannot take legal action against you.
The Trustee will require that the amount of equity calculated previously is paid into the Trust Deed. If you failed to do so it is the Trustee that might ultimately be forced to sell your home to raise the funds.
Trust Deed companies tend to handle this in different ways which, by reading through the forum, you will find can lead to major problems all around later on. As with most major decisions it makes sense to choose a company to help you very carefully. |
Scottish Trust Deed Forum Web-Facilitator.
To get personal advice on Scottish Trust Deeds please add your question to this forum, call 0800 0437201, or complete the "Contact Us" form available on the left-hand menu. |
Edited by - Trust Deed Assistant on 05 May 2010 09:45:13 |
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Dened
New Member
6 Posts |
Posted - 05 May 2010 : 11:22:12
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Hi
We are currently with A G Taggart and in a protected trust deed and a property valuation was done at the beginning and due to the valuation we are in negative equity and probably still are. I don't seem to get much information from A G Taggart, so would this mean that paying (by third party) the £500 equity protection is really a waste of money (which would be on my mother-in-laws part).
DenEd |
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Trust Deed Assistant
Trust Deed Expert
963 Posts |
Posted - 05 May 2010 : 12:01:09
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| Have you been asked to pay £500? |
Scottish Trust Deed Forum Web-Facilitator.
To get personal advice on Scottish Trust Deeds please add your question to this forum, call 0800 0437201, or complete the "Contact Us" form available on the left-hand menu. |
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Dened
New Member
6 Posts |
Posted - 05 May 2010 : 12:17:18
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| Well sort of they have agreed to add it on to the end of the 36 months, but if my mother in law can pay before hand then that's fine - i am a bit confused |
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Trust Deed Assistant
Trust Deed Expert
963 Posts |
Posted - 05 May 2010 : 12:46:39
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Was this all discussed at the start of the Trust Deed?
It isn't unusual for companies to charge £500 for this purpose where there is no equity in a property. |
Scottish Trust Deed Forum Web-Facilitator.
To get personal advice on Scottish Trust Deeds please add your question to this forum, call 0800 0437201, or complete the "Contact Us" form available on the left-hand menu. |
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Dened
New Member
6 Posts |
Posted - 05 May 2010 : 14:18:34
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What they advised is that this amount could be paid to protect any equity that could be in the property by the end of the trust deed and in one phone call they said that they weren't sure if it was just £500 or £500 each for both myself and my husband. But i would have assumed that if i was in a protected trust deed that this would not have to be paid unless a further revaluation of our property was done and the chances of there being any equity in the property at the and of the trust deed is very slim. What is the best thing to do?
DenEd |
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Trust Deed Assistant
Trust Deed Expert
963 Posts |
Posted - 05 May 2010 : 14:46:28
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I think you will need to ask these questions directly to your Trust Deed company to clarify the situation as it applies to you.
However for most firms the £500, if it applied, would be paid in all instances and there would not be a further valuation. It isn't normally a sum to be paid in the event that equity has developed.
You mentioned that you were not finding it easy to get information. If that is the case you may wish to address your questions in writing to the Trustee himself/herself. Other forum members have had a response from their firms fairly quickly when they have done this. |
Scottish Trust Deed Forum Web-Facilitator.
To get personal advice on Scottish Trust Deeds please add your question to this forum, call 0800 0437201, or complete the "Contact Us" form available on the left-hand menu. |
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Dened
New Member
6 Posts |
Posted - 05 May 2010 : 15:01:04
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| Thank you i will do that |
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£500 fee to protect equity
