Trust Deed Forum - Year 4 but still have equity payments
Trust-Deed.co.uk
Home Home Page









Trust Deed Forum
Trust Deed Forum
Home | Profile | Register | Active Topics | Members | Search | FAQ
Username:
Password:
Save Password
Forgot your Password?

 All Forums
 Trust Deeds
 Scottish Trust Deed Forum
 Year 4 but still have equity payments
 New Topic  Reply to Topic
Author Previous Topic Topic Next Topic  

Kazza
Just Joined

2 Posts

Posted - 22 February 2021 :  15:31:07  Show Profile  Reply with Quote
I’m in year 4 of my TD, I got a letter after my end of year 3 review saying that my equity payments would revert back to the payments in Yr 1 (they’ve increased over the years with wage rises). Am I able to keep the increased rate and pay off the house and car equity a little earlier or even increase this as I have another wage rise before Yr 5 starts?

Also, when is the TD discharged? Will this be after the 4 years or after the equity payments have concluded?

Kevin Mapstone
Trust Deed Expert



3959 Posts

Posted - 22 February 2021 :  19:52:24  Show Profile  Reply with Quote
Hi Kazza. not too long to go now!

There is no reason why you shouldn't be able to stay on the increased payment rate and finish your Trust Deed sooner as a result. I would just confirm that is your intention with your trustee once you get to that point.

You aren't discharged until the equity is paid too I'm afraid.

Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed
Go to Top of Page

BMC
Contributor

7 Posts

Posted - 24 February 2021 :  15:40:50  Show Profile  Reply with Quote
Sorry to jump in on your post Kazza. I am about to end my 4 year legal term June 2022 but have two more extra years due to equity on my houses.

My question is, would I be able to sell my flat that I rent to pay off the equity which is only £2790.00 per year (£5940) and finish off my TD in 2022 instead of 2024?

Many thanks,

BMC
Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



13654 Posts

Posted - 24 February 2021 :  16:03:06  Show Profile  Reply with Quote
Hi BMC,

I think this is a question you'll need to put directly to your trustee.

Kevin or Paul may be able to advise you further, but I think we've read here before that the precise wording of your trust deed could affect what happens with received lump sums (such as the sale of a property) once the minimum four year legal term has ended (but before you have been discharged).

The question is whether your trustee would feel compelled to collect in all of the proceeds of the sold flat rather than just the £5,940 which was initially agreed in lieu of the assets you owned when your trust deed began.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

BMC
Contributor

7 Posts

Posted - 24 February 2021 :  16:08:00  Show Profile  Reply with Quote
Hi TDA,

Thank you for your reply. I really appreciate this. If Paul or Kevin can also advise that would be fantastic. I will speak with my trustee closer to the time when my 4 year is about to end and try and negotiate some sort of deal. I have a car that is fully paid for and has a current value of £8000 which I no longer use. I can only hope that they consider as we desperately want to sell the flat as it has become such a burden.

Thanks again.
BMC
Go to Top of Page

Kevin Mapstone
Trust Deed Expert



3959 Posts

Posted - 24 February 2021 :  19:16:05  Show Profile  Reply with Quote
I think it is likely that your trustee would insist that if the property is sold then your share of any proceeds would have to be paid in, I'm afraid. The "buy-out" agreement you made when setting up the Trust Deed was so that a sale of your property wouldn't be forced, but if you are selling anyway then that is different.

Was there not an agreement regarding the value of your car too?

Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed
Go to Top of Page

BMC
Contributor

7 Posts

Posted - 25 February 2021 :  16:30:04  Show Profile  Reply with Quote
Hi Kevin,

Thank you for your reply.

We want to sell the property after all payments have been made, but we would like to use or ask that they consider raising the monthly payment to reduce the period of time. My car is part of it, but when i made inquiries about finishing early I was told I would be able to use the car to be released early. I'm going into the 4th year now so will call them again to check to make sure that this can still happen.

Thanks again.

BMC
Go to Top of Page
  Previous Topic Topic Next Topic  
 New Topic  Reply to Topic
Jump To:
Trust Deed Forum © 2008 - 2020 www.trust-deed.co.uk Go To Top Of Page
Snitz Forums 2000

(c) Bright Oak Limited. Company Number: 06774006. Data Protection Registration: Z1657982.
Telephone calls may be monitored or recorded. Authorised and regulated by the Financial Conduct Authority.
Trust-Deed.co.uk, Clyde Offices, 2nd Floor, 48 West George Street, Glasgow, G2 1BP. Tel: 0141 2490416.