Scottish Trust Deeds Help and Advice

kev1980_2

If anyone needs help or advice with Scottish Trust Deeds then feel free to ask.

I'm not an expert but I am currently in a Scottish Trust Deed and may be able to answer questions.

solidarity

Hi,
My parents are considering a trust deed but are scared to go ahead in case they have to sell the house to pay equity that's been built up in the house after the three years is up.

Is this something that has been explained to you or did you not know about this?

Thanks.

kev1980_2

Hiya!!

Yeah, this is a question that i asked whilst I was having my meetings.

Ok, The company that is dealing with my trust deed is an extremely well established organistation that is recommended by the CCCS and they explained the process to me.

When your parents enter a Scottish Trust Deed the trustee will appoint a company to come to your parents house to do a valuation. The valuation can also be done before signing the trust deed so that you can see how much equity will need to be found at the end of the trust deed, obviously if there is not a lot of equity in your parents property then this is good for the trust deed purposes. This valuation will then be sent to the trustee. Your parents will need to contact their existing mortgage lender to ask for a mortgage redemption figure in writing so that the trustee can work out what equity is in the house.

The end figure is the equity thats left over and can be dealt with at the end of the trust deed 3 years, as long as that figure which was agreed at the beggining of the trust deed is paid at the end then the house WILL NOT!!! be revalued and as long as your trustee is statisifed that you have fulfilled your 36 monthly payments you your parents will be discharged in full.

coolcait

Hiya kev

Good to see you again! I hope things work out for you with the trust deed - when will you know if it has become protected?

You know I'm a trust deed cynic , but I know you looked into it in detail and have obviously made an informed decision about what's best for you. So I wish you all the best with it.

All this means, of course, that you're well-placed to offer a more positive view of trust deeds - to counteract the more negative mutterings of folks like me :rotfl:

Looking forward to hearing how it all goes for you :beer:

kev1980_2

Hi Coolcait,

Nice to hear from your again! :j

After a long and very though out decision I have opted to go for a Scottish Trust Deed. I had another few telephone conversations with the trustee and also with one of the senior managers at CCCS who were brilliant.

I've asked as many questions as I possibly can think of and have decided on the Trust Deed as the best course of action to solve my debt problem.

The trustee have been great, my entry has already appeared in the Edinburgh Gazette and creditors have until 01 December 2008 to object to the trust deed, to be honest they would be daft not to agree to it as if it does not become protected they will not get as much money in return.

As I said at the beginning i'm no expert but I have had a lot of experience of both Trust Deeds and the Debt Arrangement Scheme, so once again any questions from MSE please feel free to ask.:money:

feisty1

Kev1980
The end figure is the equity thats left over and can be dealt with at the end of the trust deed 3 years, as long as that figure which was agreed at the beggining of the trust deed is paid at the end then the house WILL NOT!!! be revalued

Where did u rcv this info from? .........and is it in writing?

I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

kev1980_2

feisty1 wrote: »

Kev1980
The end figure is the equity thats left over and can be dealt with at the end of the trust deed 3 years, as long as that figure which was agreed at the beggining of the trust deed is paid at the end then the house WILL NOT!!! be revalued

Where did u rcv this info from? .........and is it in writing?

I am a Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

I will type below the terms and conditions of the trust deed in relation to the above question:

" I have agreed that the debtor will obtain thrid party funds or a remortgage at the end of the trust deed period to relinquish my interest in their share of the equity in the property.

In the event that the third party payment is not received within the agreed timescale, the property will require to be revalued"

I have a statement of affairs from my trustee which shows the equity that has been calculated in the property at the beginning of the trust deed which must be paid after 36 months to prevent the house being revalued.

sarahbrand

I'm just over a year into my trusteed, and thankfully the house is not in my name, nor the mortgage. Here is a link to the Scottish Government's consultation - it is really useful and easy to understand! http://www.scotland.gov.uk/Publications/2006/01/20093732/0 This was the best thing I ever did, my life has changed dramatically taking this.

FireyFee

Hi,

i am currently in a trust deed and have been for just over a year now also my partner has a seperate trust deed taken out at the same time. Since entering we now feel it has been the worst move we have made as they would not take all our debt into consideration and now we are struggling to live every month as our income has been reduced recently. Is there light at the end of the tunnel?? Right now we can't see it.

coolcait

FireyFee wrote: »

Hi,

i am currently in a trust deed and have been for just over a year now also my partner has a seperate trust deed taken out at the same time. Since entering we now feel it has been the worst move we have made as they would not take all our debt into consideration and now we are struggling to live every month as our income has been reduced recently. Is there light at the end of the tunnel?? Right now we can't see it.

It sounds very odd that they wouldn't take all of your debt into account. Can I ask - what debt did they exclude from the trust deed, and are you paying that off as well as paying a contribution to the trust deed?

kev1980_2

FireyFee wrote: »

Hi,

i am currently in a trust deed and have been for just over a year now also my partner has a seperate trust deed taken out at the same time. Since entering we now feel it has been the worst move we have made as they would not take all our debt into consideration and now we are struggling to live every month as our income has been reduced recently. Is there light at the end of the tunnel?? Right now we can't see it.

Hi FireyFee,

As Coolcait has said please let us know what debt they would not take into consideration and give us some more details.