Sell Your House Whilst in Trust Deed? UK Property Laws

Are you searching for answers about selling property held in trust in the UK? You’ve come to the right place. Each month, our website is visited by over 170,000 people trying to learn more about different debt solutions.

In this article, we’ll explain:

  •  What a trust deed is and how it works
  •  If you can sell your house while it is in a trust deed
  •  How your trustee works out an equity amount
  •  What happens to your property if you have little or no equity
  •  How a protected trust deed affects your property

According to the Money & Pensions Service, 700,000 people are either in problem debt already or are at risk of experiencing problem debt.1 We know how difficult it can be to face these problems.

Don’t worry; our team is experienced in dealing with debt, and we’re here to help you understand and find a way through.

Can I sell my house while it is in a trust deed?

You could be able to sell your house in a trust deed. However, this is only possible if your trustee agrees with selling property during a Scottish trust deed.

Trust Deed Breakdown

Before we dive into the details of selling a house while it’s in a trust deed, let’s first break down its key components. This will give us a clearer understanding of what’s involved.

Can I remortgage my house while in a trust deed?

Possibly, you could be able to remortgage your house.

However, the fees for remortgaging or altering your propertys balance of ownership could be significantly high.

Credit reference agencies will be updated about the circumstances if your trustee allows. This could help make them less inclined to your loan as your credit score will not be as good as it could be.

I suggest you visit a mortgage broker for better advice about refinancing during a trust deed.

How will a protected trust deed affect my property?

If you have a sufficient amount of equity in your home, your trustee will consider that while making your repayments.

Trust deed payments will be taken from your income to make monthly payments. However, the equity in your home could help boost the amount your creditor will receive.

Can a Scottish trust deed affect my property?

A Scottish trust deed could make it difficult to get a mortgage or a loan in the future. You could be forced into selling your property as well.

Also, your credit rating could be significantly affected for a period of 6 years.

How will my trustee arrive at an equity amount?

It is important to understand that your home is professionally valued.

If you have a mortgage, you could be able to get a redemption from your creditor.Moreover, the redemption amount is the sum required to repay the mortgage.

This is deducted from the total valuation to arrive at the equity.

What will happen to my property if I have little or no equity?

If your property’s equity amount is less than £5,000, your trustee might not include it in your trust deed arrangement.

Moreover, if you decide not to sell your home, you could be able to apply to the sheriff’s court. This could help delay or cancel the sale of your home.

How can I avoid selling my house in a trust deed?

One of the biggest things people worry about is the effects of a trust deed on home ownership. If you are a homeowner, you could avoid selling your property. 

There are many things you could do, such as:

  • Making payments in instalments: 

By extending the terms of your trust deed, you could make instalments. If your property is jointly owned, you could ask your partners to help contribute to the instalments.

  • Friends and family could make your instalments: 

You could ask your friends and family to help raise money in their account to pay your trustee and invest in your property.

  • Your joint owner could buy your share:

In the case of a jointly owned property, your partner could buy your share of the property and remortgage it in their name. 

  • Investments made by your joint owner:

Your joint owner could pay some of the equity to reduce your liability. 

  • Sale and rent back:

This means you could sell your house to a private firm at a discount and then rent it back. However, this can be risky.

I would suggest you get legal advice to understand which option is the best for you. 


  1. Money & Pensions Service – Financial wellbeing in Scotland

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