Trust Deed Forum - 3rd Year of TD - but want to finish early 2021
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 3rd Year of TD - but want to finish early 2021
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BMC
Just Joined

1 Posts

Posted - 19 October 2020 :  21:40:17  Show Profile  Reply with Quote
Hi all,

New to this page/forum. Me and my wife are under our own separate trust deeds. They began in 2018 and have been absolutely fine. We are both under 72 month payment plan. However due to some health issues (we also rent out our other flat) my wife's MS is now at a stage where she cannot keep on to of the upkeep of the property and is physically struggling. My job keeps me busy and I also do not have the time now to manage the flat.

We are thinking if it would be beneficial to sell the flat and end our TD earlier than stated in our agreements. The flat has increased in value. Could we both use this to pay off the DT earlier than 2024?

They have considered my car as final payment currently valued at 8,800 can this also be considered as early release?

Our current outstanding balances are:

9680.00 & 8800.00

Can this realistically be considered? We have spoken in great length and we would be more than happy to sell the flat and car early to release us from the DT early.

Many thanks,

BMC

Paul McDougall
Trust Deed Expert



94 Posts

Posted - 20 October 2020 :  08:45:47  Show Profile  Reply with Quote
BMC

Hope you are well

To bring your trust deed to an early closure, all debts plus interest must be settled as well as the Trustee fees.

You can ask your Trustee for full cost recovery calculation to ascertain the amounts.

Unfortunately, you would be unable just to settle the balance of contributions due to the Trust Deed.

Paul

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TDA (Debt Adviser)
Trust Deed Expert



13544 Posts

Posted - 20 October 2020 :  09:08:00  Show Profile  Reply with Quote
Welcome to the trust deed forum BMC.

To expand a little on Paul's reply, there's only one way to complete a trust deed before the end of the minimum four year legal term.

This means that each of you must have paid in total:

1 - The full amount you owed at the start plus...
2 - Interest on the debts plus...
3 - Your trustee's fees and costs

The amount that each of you has already paid will be included as part of the total amount required for an early discharge.

The reality however is that the total payment required is likely to be a fair amount more than you each owed at the point that you signed your trust deeds.

You could ask your trustee for an estimate of the sum required for an early discharge and then decide whether:

1 - The sale of the flat would raise enough money
2 - This is a course of action that's worth taking

Another thought is that your options might be different once you have completed the four year minimum legal term. If the extra two years of your trust deeds were set up to deal with the equity that you have in your assets, you might be able to use the sale of an asset to deal with this extra liability more flexibly at that point in time.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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