Trust Deed Forum - Home Equity at end of PTD
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1426
Just Joined

2 Posts

Posted - 11 August 2021 :  19:44:42  Show Profile  Reply with Quote
Hello all,

Is there an assessment of your home value vs outstanding mortgage at the end of a PTD.

My house value has increased by almost the same amount as original debt over the last 3 years.. I know I won’t be able to get equity out as my mortgage provider won’t lend me anything extra.

Could I be forced to extend my Trust Deed because of this, or could the Trustee force me to try and release equity?

DBHA21
Frequent Contributor

28 Posts

Posted - 11 August 2021 :  20:42:30  Show Profile  Reply with Quote
Hi 1426,

When you signed your Trust Deed, you will have signed a Form 1B - this is a legally binding agreement between you and your Trustee as to how they will deal with the equity in your home.

Provided you stick to the agreement in the Form 1B, the equity amount will be based on the amount at the START of the Trust Deed. Best advice is to look out or request a copy of your Form 1B
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1426
Just Joined

2 Posts

Posted - 11 August 2021 :  20:52:01  Show Profile  Reply with Quote
Thank you for the response DBHA21
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DBHA21
Frequent Contributor

28 Posts

Posted - 12 August 2021 :  12:36:20  Show Profile  Reply with Quote
No problem - hopefully it was helpful

I should point out, some Trustees include in the Form 1B a condition that you will try to remortgage to release the equivalent sum to the equity at the start. It's unlikely this would be successful as you are in a Trust Deed. In this scenario, the Trust Deed is usually extended if the remortgage is unsuccessful.

Other typical agreements include an extension to realise sufficient funds or a third party payment during the course of the four years. In all these scenarios, the equity is based on the START of the TD

Hopefully your Form 1B provides you with the clarity you need
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