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37/48 payments

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(@chipmonk1978)
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Joined: 12 months ago
Posts: 1
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Hi all👋🏼

I am 3 quarters of the way through my trust deed. A lot can happen it 4 years, so I am looking for a bit of advice please. 

I have been with by boyfriend of 10 years we now want to move in together and get a home of our own, in those 10 years our kids have grown up etc. 

 

I own my home and when I started my trust deed (Jan2020) they valued my house and said there was just under £6000 equity. Once fees etc were accounted for it left £733 to go to my trustee. 

I have to pay this in 6 instalments once my TD is finished around march/April next year. Taking me to August time.

my questions are:

1.  Can I sell my flat whilst in the TD?

2.  Will my property be re valued, if so, if the value has risen will any equity go to the trustee?

3.  Can this payment of £733 be made to the trustee earlier in a lump sum so there is no interest in the property if it was to be sold, assuming the value hasn’t increased?

4.  Can I rent out my home so I can move in with my boyfriend, if selling isn’t an option until my TD is finished?

5.  Is the TD deemed finished after the 48 payments or is it deemed cleared once the property equity is paid (£733) the added 6 payments?

I have added value to my home (not much maybe about 5/6 grand) by buying a second hand kitchen, being savvy and using marketplace for bathroom items etc, and luckily had handy people help increase my homes value with decorating etc.

I am desperate to move on my life start afresh but I suppose the main thing that’s in the back or my mind is am I better to wait u til next year  once the trust deed is finished and the £733 payment is made.

Really eager to move on!

Any advice would be appreciated ☺️

thanks in advance x


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Hi Chipmonk1978.

The equity agreement you have in place is superseded if you go ahead and sell the flat whilst still in the Trust Deed.  So any additional proceeds from the sale could be claimed by your Trustee to help pay towards your debts in the Trust Deed.  As such, I'm afraid you are probably best to wait until it is finished (which is after all payments have been made including for the equity agreement).

There's no particular reason you couldn't rent the property out instead, though if this brings in extra income for you then you might find that your monthly Trust Deed contributions are increased accordingly.

I know it must be frustrating but hang on in there!  I'm sure the last year or so will fly by.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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