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2020trusteed
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4 Posts

Posted - 21 January 2021 :  22:56:00  Show Profile  Reply with Quote
Can anyone advise on second home equity? I was told to meet criteria initially I had to hold onto a rental (equity on it wouldnít have covered debt but would have helped)Equity was based on average on st at time 5 years ago and all flats vary in size. It was assumed equity would be around £6000 which Iím still paying off although property would actually sell at a loss now. Am I right in saying I am unable to sell or is there anyone can advise on this matter. I should have finished last year but equity period was extended, also income has reduced since taking it out initially but monthly payments have never changed. Thank you

L Cooper

TDA (Debt Adviser)
Trust Deed Expert



13655 Posts

Posted - 21 January 2021 :  23:37:54  Show Profile  Reply with Quote
Welcome to the trust deed forum 2020trusteed.

Was there an agreement at the start that explained what you would need to do to address the equity in the second home that existed at the time? It sounds like there was but I just want to be sure.

If there was an equity agreement then that's what you'll need to do in order to complete your trust deed.

You can sell but only with your trustee's consent.

Is your monthly payment genuinely affordable at the moment following the reduction in your income?


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2020trusteed
New Member

4 Posts

Posted - 21 January 2021 :  23:49:40  Show Profile  Reply with Quote
Tbh Iím not sure, Iím assuming so but feel itís a noose round my neck now and would have been better selling at the time. Am I able to sell now and use profit if any to pay equity? Or am I obliged to hold onto it? Thanks
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Kevin Mapstone
Trust Deed Expert



3959 Posts

Posted - 22 January 2021 :  10:05:52  Show Profile  Reply with Quote
It might be possible to sell the property, but your trustee would need to agree to it and be involved in the process and any profit would be paid into your Trust Deed.

How much longer is it going to take you to pay off the equity at a rate you can afford?

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2020trusteed
New Member

4 Posts

Posted - 22 January 2021 :  22:20:39  Show Profile  Reply with Quote
Itís around £6500 so would be couple of years at least meanwhile Iím still having the expense of all insurances, maintenance etc for it. With the debt itself being paid off if I was able to sell is it only the £6500 that would need paid from any profit or should it make more would it all need to be paid to trustee?thank you

L Cooper
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TDA (Debt Adviser)
Trust Deed Expert



13655 Posts

Posted - 24 January 2021 :  20:24:35  Show Profile  Reply with Quote
Hi 2020trusteed,

If you actually sell the property, and the profit is more than you initially agreed to pay over in lieu of the equity, you'll have to hand over the full profit to your trustee.

These agreed equity payment figures apply on the assumption that there will not be a sale. Things change if the proeprty is actually sold.

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2020trusteed
New Member

4 Posts

Posted - 29 January 2021 :  15:38:32  Show Profile  Reply with Quote
Thank you. I have tried to contact for more information on this for months and nobody seems to have the answers. The latest sale on st was less so would be at a loss.

L Cooper
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