Trust Deed Forum - Thinking of selling my flat
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 Thinking of selling my flat
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gsmith1873@hotmail.com
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5 Posts

Posted - 13 February 2021 :  21:51:38  Show Profile  Reply with Quote
Hi,

I am just over 3 years into my Trust Deed and my contributions have been paid in full last month. It was originally for 6 years with 2 years extra payments for my equity.

I do not make any more payments but I won’t be discharged until November this year as Trust Deeds have to be open for 4 years legally.

My question is if I sell my flat will my Trustee ask for the funds from the sale even though I have paid off my contributions?

I have contacted them regarding this but they have not given me a definite concrete answer.

Many Thanks

Graeme

TDA (Debt Adviser)
Trust Deed Expert



13654 Posts

Posted - 15 February 2021 :  08:56:37  Show Profile  Reply with Quote
Welcome to the trust deed forum Graeme.

Are you saying that the total amount that you have paid already covers all of the following?

1 - The total debt you owed at the start.

2 - Interest on this debt.

3 - Your trustee's fees and costs.

I'm trying to understand why your payments have come to an early end and wondered if the above scenario is the case?

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gsmith1873@hotmail.com
New Member

5 Posts

Posted - 15 February 2021 :  09:25:51  Show Profile  Reply with Quote
Hi,

No I have only paid my remaining contributions.

As I have paid in full the figure which was agreed at the start of my TD they have have said that no more payments are needed and I will be discharged in November 2021 instead of November 2023.

Hope that makes sense.

Thanks

Graeme
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TDA (Debt Adviser)
Trust Deed Expert



13654 Posts

Posted - 15 February 2021 :  09:35:17  Show Profile  Reply with Quote
Thanks Graeme - that does make sense.

I think there might be an issue with selling your flat prior to being discharged in that case.

I wouldn't do anything unless you hold a written confirmation from your trustee that you can do this without any of the funds generated becoming due to your trust deed.

It's possible that they might not feel able to provide this to you because, usually, any sum generated in this type of way would be used to repay more of what is owed to your creditors.

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Kevin Mapstone
Trust Deed Expert



3959 Posts

Posted - 15 February 2021 :  09:40:03  Show Profile  Reply with Quote
Any lump sum you receive during the 4 years from the date you signed your Trust Deed may require to be paid in for the benefit of your creditors. This could include the proceeds from the sale of your flat.

Whilst you have already paid an amount in in respect of the equity in your flat, this is the amount that was agreed could be paid so that a sale would not be forced. However, if a sale happens voluntarily then the windfall you receive may be required by your trustee, though they should at least deduct the amount paid in already in respect of it.

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gsmith1873@hotmail.com
New Member

5 Posts

Posted - 15 February 2021 :  09:46:01  Show Profile  Reply with Quote
Ok thanks.

Surely they are obliged to give me written confirmation one way or another what would happen if I sold my flat before I was discharged in November?

As I said in my original post I have spoke to them regarding this but they seem to be avoiding given me a yes or no answer.

Thanks
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gsmith1873@hotmail.com
New Member

5 Posts

Posted - 15 February 2021 :  09:48:26  Show Profile  Reply with Quote
Thanks Kevin,

Another question I had is could they force a the sale of the flat at the end of my 4 years?

Thanks

Graeme
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TDA (Debt Adviser)
Trust Deed Expert



13654 Posts

Posted - 15 February 2021 :  10:02:08  Show Profile  Reply with Quote
Hi Graeme,

I can't see any reason why they'd want to force a sale of your flat after you've completed your obligations to the trust deed.

It's just a guess, but I suspect the person you spoke with might have needed to get confirmation from someone more senior about what would happen if your flat were sold.

You can of course keep pushing for a confirmed answer from them, but I'm afraid I doubt it's going to be the answer that you want to receive.

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gsmith1873@hotmail.com
New Member

5 Posts

Posted - 15 February 2021 :  10:04:15  Show Profile  Reply with Quote
Ok thanks for your advice.

Graeme
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Kevin Mapstone
Trust Deed Expert



3959 Posts

Posted - 15 February 2021 :  12:54:30  Show Profile  Reply with Quote
Hi Graeme. They couldn't force a sale if the amount that was agreed at the start has been paid, unless there has been some kind of non-compliance on your part otherwise.

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