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dl89
New Member

5 Posts

Posted - 29 August 2018 :  10:20:24  Show Profile  Reply with Quote
Hi,

Looking for some advice I have recently entered a trust deed agreement that was extended to 5 years as I had a mortgage but recently I have split from my partner and left the family home. I was wondering if I sold the house or was bought out of my half then would my trust deed be reduced back to 4 years ?

Thanks

Swandog
Advanced Contributor

68 Posts

Posted - 29 August 2018 :  10:32:55  Show Profile  Reply with Quote
Hi dl89,

Sorry to hear about the change in your personal circumstances.

Yes, if your Trust Deed was extended to ingather the equity and this is paid over then your Trust Deed should revert back to 4 years. Also if the house is sold then your Trustee will ingather your full 50% of the net free proceeds following the sale so you donít want to make any quick or rash decisions about a sale just yet.

Do you think with the change in circumstances you will be able to maintain your agreed payments? Iím just thinking with you moving out will you have extra costs now such as rent, council tax etc?

Itís a good idea to give your Trustee a call to explain your change in circumstances and they will keep you right.
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dl89
New Member

5 Posts

Posted - 29 August 2018 :  10:53:24  Show Profile  Reply with Quote
Hi Swandog,

At the moment i am just trying to get my facts in place until i know for sure if this change is a perminant one, if it is and i am no longer in the house it would be in my best interests to sell and reduce my trust deed period is it not? i know i wont recieve anything from the sale but currently i am not recieving anything anyway and i just have longer to pay my trust deed.

I will give them a call,I am currently renting from a friend and my costs are pretty much the same as when i was in my family home.Will i have to make the trustee aware of these changes ?

Also i recieved an email confirming the completion of my trust deed application a few months back and have been paying monthly for about 3 months but have never received any details of it in writing is this something i should have received by now?


Thanks
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Swandog
Advanced Contributor

68 Posts

Posted - 29 August 2018 :  12:11:15  Show Profile  Reply with Quote
Hi,

Sure I understand. Last thing you want to do is make any rash and quick decisions if itís not permanent one.

What was the agreement in relation to your Trust Deed and the equity? Some Trust Deeds are extended for 1 year to pay over a proportion of the equity rather than the full 100%. If your Trust Deed is set up like this then you could end up paying over more equity via a sale than the extension.

If the changes arenít permanent right now then itís up to you if you notify the Trustee or not. Maybe best to wait until there is some certainty about your circumstances and then contact your Trustee.

You should have received a letter to confirm that your Trust Deed has been accepted when the creditors received confirmation of this. You can check the register of insolvencies to see if your Trust Deed is ďProtectedĒ and if it is then itís all ok. Or just give your Trustee a quick call and they can confirm things for you.
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dl89
New Member

5 Posts

Posted - 29 August 2018 :  13:57:04  Show Profile  Reply with Quote
Hi,

My agreement as I understand it is that it was extended to 62 months (5 years and 2 months) to cover the equity on my home. With only a valuation to go on I would suggest that my equity would be more than what I would pay in that 14 month extension period, However as I have left that home I think its unrealistic to expect my former partner to not want to get me off the mortgage within that 5 year period and if I can reduce the period I am in this trust deed then the quicker I can try and get myself back on my feet don't you agree?

Thanks
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Swandog
Advanced Contributor

68 Posts

Posted - 29 August 2018 :  14:23:24  Show Profile  Reply with Quote
Hi,

Itís just about looking at all of your options to decide on the best course of action. Obviously if your former partner wants your name off of the mortgage then it makes it difficult to avoid a sale / re-mortgage. Also, the issue could be that the mortgage provider wonít allow your name to be taken off as your ex-partner doesnít meet their lending criteria for the mortgage to go into their sole name and therefore a sale may be inevitable to completely separate things.

Letís say for example your equity is £10,000 but you have agreed to extend your Trust Deed to pay over £3,000 in that 14 month period.

If you sold the house during your Trust Deed then the Trustee would take the full £10,000 or possibly more depending on the eventual sale price. If you held off, seen out your payments then you would benefit from the sale of the property which could allow you to move on and buy another house once your credit rating is repaired rather than then trying to save a deposit. Obviously thatís not in the best interests of your creditors but itís your choice to make and itís about being fully informed.

If at the end of the 4 years a third party could pay what you are due to in those 14 months then the Trust Deed could be brought to a close at the end of 48 months. Just giving you different options to think about.
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dl89
New Member

5 Posts

Posted - 29 August 2018 :  14:30:36  Show Profile  Reply with Quote
Hi,

I didn't realise that was an option to pay the extension in a lump sum at the end of the four years so that the trust deed is closed in the 4 year period rather than the 5 i currently have agreed to if I understand you correctly?

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Swandog
Advanced Contributor

68 Posts

Posted - 29 August 2018 :  15:06:11  Show Profile  Reply with Quote
Hi,

The minimum time period for a Trust Deed is 48 months after which if you have an asset then normally itís extended for the value of this to be paid into the Trust Deed.

If at the end of the 4 years you have a third party that is able to and prepared to pay a lump sum then I canít see why this would be rejected by the Trustee. Itís better to get money in as quickly as possible than risk a change in circumstances and no payments. Obviously itís something to speak with your own Trustee about to see what the options are and to ask the question.
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dl89
New Member

5 Posts

Posted - 29 August 2018 :  15:08:48  Show Profile  Reply with Quote
Thanks for your advice Swandog very much appreciated.
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Swandog
Advanced Contributor

68 Posts

Posted - 29 August 2018 :  15:24:36  Show Profile  Reply with Quote
Your welcome dl89.
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