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Sickasahip
Starting Member
5 Posts |
 Posted - 01 December 2009 : 18:01:07
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Hi. I hope someone can help.
In BR how are Deeds of Trusts dealt with. My sister has a Deed of Trust on part of the equity in my home. To be accurate if I exclude what we owe we probably have negative equity. The property is mortgaged above the level of what was originally agreed in the Deed of Trust (she is aware) and any equity that remains belongs with her. How would the OR view this. |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 01 December 2009 : 19:27:33
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Hi Sickaship
I assume you are in Scotland?
Has an insolvency practitioner been involved with this at an earlier stage?
I am not an expert in this and I suspect one of the Insolvency experts will be able to guide you.
Regards, Richard
"There are no problems - only solutions..." |
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Sickasahip
Starting Member
5 Posts |
Posted - 01 December 2009 : 19:33:08
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Hi Housing. No I am based in England. The subject I am refering to is a Deed of Trust as opposed to a Trust Deed.
Cheers |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 01 December 2009 : 20:06:05
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Hi again sickasahip,
Ah, sorry, that confused me... easilly done!!
I recall from my legal student days that this was the most complex of subjects!! I recall one of the maxims being; "Equity follows the law..."
I would speak to your solicitor who drafted the trust documentation
I wish I could be more helpful, Regards, Richard
"There are no problems - only solutions..." |
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debtinfo
forum expert
2826 Posts |
Posted - 01 December 2009 : 21:21:22
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| depends on what the deed says does it specify an amount or a percentage split of equity. Were you insolvent when the deed was made, why was the deed made ie was it for a deposit for example |
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Sickasahip
Starting Member
5 Posts |
Posted - 01 December 2009 : 21:30:56
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| debtinfo. The amount was to give my sister a share in what was a property i purchased from my parents at a below market value. The deed states a % and I would probably say that if the maths was checked i would have been insolvent. My wealth did not suffer although if anything it probably increased. |
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debtinfo
forum expert
2826 Posts |
Posted - 01 December 2009 : 21:46:19
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ok so all things being equal then she is just due a percentge of the equity and if the property was sold then she would get her share.
The problem could be if the OR decides to challange the original deed as a transaction at undervalue. Who set up the deed, was it done at the same time as when you bought it. IE could it be argued that it was your parents that in effect gave your sister the equity, rather than it being your equity and you giving it to her, also how long ago was this set up |
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Sickasahip
Starting Member
5 Posts |
Posted - 01 December 2009 : 22:30:32
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| The deed was set up 2.5 years ago when the property transaction took place.Also as the property was passed to me at an undervalue as opposed to me passing off a property at under value, should this make a difference. |
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debtinfo
forum expert
2826 Posts |
Posted - 01 December 2009 : 22:34:09
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| I would think so, i would argue along the lines that the way the deed was done was intended to trnsfer from parents to your sister and so nothing to do with you and it should stand as it is |
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Sickasahip
Starting Member
5 Posts |
Posted - 01 December 2009 : 22:38:49
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| oh I see where you are coming from. What i was meaning that there was no transaction that reduced my asset/estate value. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 01 December 2009 : 23:17:17
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as you have said as you have not tried to pass off any of your assets under value the OR should not have any interest in that transaction
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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Deed of Trust
