I have been in a TD since March 2008, I received a letter from my TD Company requiring an amendment to the TD to extend for a further 12 months to meet the required TD amount. Is this appropriate, can a TD be extended beyond 3 years? Originally the TD was to have realised the equity in my property to pay the TD, but then the crash came, therefore instead of equity we agreed a fixed sum of ?ú350.00 per calendar month, 4 months from the completion of the 3 year term the company now advise that there would be insufficient sums to satisfy their legal obligations, hence the proposal to extend by another 12 months, do I have any option(s)?
Welcome to the trust deed forum paolo64.
When the trust deed was signed how much was it anticipated that you would pay in lieu of the equity in your property?
How long was the, later agreed, ?ú350 per month due to run for? Was this in addition to your agreed trust deed payment?
They have requested the TD run a further 12 months. The amount intended via equity was ?ú19,000, I've done the maths as well and there was no way the payment of ?ú350 over 36 months would come anywherte near. Beyond the extension of 12 months can a further extension be applied?
Thanks for the update paolo64.
Was that ?ú350 the figure that you always made into the trust deed from the start (the monthly contribution), or an extra figure when it became apparent that the equity could not be released (so you made your original monthly payment plus an extra ?ú350)?
Extensions can be possible where the amount originally promised to creditors fails to be delivered for some reason. However it would seem only fair that the position was confirmed in writing to you so that you have some security about how and when everything will be brought to an end.
Thanks for your reply. Initially they were looking to achieve the figure by releasing equity from my home, but then things got a bit bad as we all know in the property market, so I think it was about June or July 2008 (3-4 months after the PTD) I am not too sure. I will write to the company and request they confirm the current status (I have'nt missed a payment) and maybe confirm if the PTD will wind up in March 2012
Thanks again you and your colleagues provide a very worthwhile service otherwise it can seem like a never ending nightmare 🙂
Please let us know how you get on paolo64 as a number of our visitors that started trust deeds two or three years ago (with equity in their homes) will have similar concerns.
Most trust deed companies would have no problem with clarifying your position in writing and I'm sure it will all be cleared up for you soon.
Thanks TDA 🙂 Will do, letter's in the post as we 'speak'