Hi milo333 and welcome to the forum.

I don't think you'll be able to sell the property without the consent of your Trustee. It sounds as though you have agreed to pay the ?ú2700 irrespective of what happens to the property anyway.

I'm not sure I understand why the trust deed company will not allow the early settlement of the trust deed. If you were to organise for a third party to pay the ?ú2700 and the balance of any remaining contributions (number of months mutliplied by monthly payment) I cannot see why this wouldn't be acceptable.

Everyone wins, not least your creditors who will get some money back sooner.

Hopefully our experts can shed some more light on this for you.

With regard to the house, what was the reason for me paying the ?ú2700 then? I understood it meant there would be no further interest by the creditors in it as the TD company calculated, after a valuation had taken place,they would only make ?ú2700 if the house was actually sold at the commencement of the TD.
It was also stated that if the house increased in value(fat chance) that I would not be liable?

Hi milo333,

I may have misunderstood. Have you paid the ?ú2700 already?

If not: The ?ú2700 appears to be the value of the asset that you owned at the start of the trust deed. You are expected to contribute your disposable income and the value of any significant assets that you own when you sign a trust deed.

Your liability for this seems to have been fixed at that point in time (no more to pay if the value of the property goes up, but will still need to pay it even if the value of the property goes down).

It doesn't matter how it is paid. It could be by selling the house, remortgaging the house (if possible), a third party contributing the funds or sometimes by making extra contributions at the end of the usual three year trust deed period in lieu of it.

Thanks. So, I should be able to sell the house within the 3yr period, as long as the "already agreed" ?ú2700 is paid?

A similar question came up on a recent thread milo333 and, as I remember it, there was a little uncertainty about what would happen if the property were to sell for more than expected while you remained in a trust deed.

I think it was Kevin who mentioned that if more than expected was raised from a sale that an argument exists that the surplus might be treated as "acquirenda" which potentially might have to be paid into the trust deed as well. "Acquirenda" is money or assets that come into your possession during a trust deed (like an inheritance for example).

It's complicated also because the joint owner of the property (your wife) is not in a trust deed and therefore has rights over the property.

A complex area... worth waiting for one or two more views from the experts I think.

I think this may be one of those queries where there is no definite answer and it is really down to your trustee's own interpretation. But unless there was an actual disposition at the time transferring your share of the property to the third party who "bought out" your equity then I suspect that legally your trustee may be entitled to seek your share of any further funds that are realised from the property (minus the ?ú2700 paid for already I guess).

Whether they would ask for these funds in practice is another matter and would need to be discussed with them.