Welcome to the trust deed forum Jihoye.

In general terms a trustee will not make any provision for someone to repay a new debt incurred after a trust deed begins. The reason for this is that it effectively reduces the amount that is affordable to repay to the trust deed creditors.

If money is being paid to rent your home then your trustee might well consider that this increases the amount that you can afford to repay to your creditors.

I don't suppose there's any harm in discussing this with your trustee though to find out how they see it. It's quite a unique scenario in terms of a new source of income that, it sounds like, has only become viable as a result of your father funding the home improvements.

It would certainly need to be discussed with your Trustee before you go ahead with this plan, otherwise it could certainly cause problems. To be honest, there would have been a stronger bargaining position from your father's perspective if that conversation was had before your father funded the renovations, but as they are now done there isn't really as strong a reason why the trustee shouldn't view any extra income you start receiving as purely your own.

Best see what the Trustee says, but I would imagine they will likely look for some sort of benefit to your Trust Deed creditors from the extra income, so you might need to try to find a compromise that works for all parties.

Regards "is that legal" I would recommend double checking any relevant legislation regarding landlord registration requirements. I would also check if your mortgage lender would have an issue. There are also some local authorities taking steps to drastically control short-term rental markets, so worth checking if your LA would permit it.

In respect of the implications for a Trust Deed, as TDA and Kevin have alluded to, there's nothing stopping trying to improve your fortunes whilst in a TD, but you have agreed to pay the full balance of what you can afford towards your debt & your creditors have only agreed to write off what you cannot afford to repay. If you generate a new income a stream, that should go towards the Trust Deed. There's little sympathy for the argument that you have subsequently borrowed more - why should your existing creditors, who entered an agreement with you, suffer because you want to repay someone else in full?

As it's a self employment, a Trustee may object as it exposes them to potential liability in the event of a trading loss. You would also need to complete a tax return and budget for the additional tax liability - capital repayments towards debt are not deductible expenditure for tax purposes.

On the other hand, a Trustee may view it that there's no/little detriment to them of allowing it - if they don't permit the payment structure discussed, you wouldn't let the property out. So they are not "losing" any revenue. I suspect, if they were to allow it (based on all the other risks and issues) they would want at least some of the revenue to contribute towards the Trust Deed, so your existing creditors get some of the benefit.

My one piece of advice is to discuss this with your Trustee BEFORE you start it. If you start it without discussion, the Trustee would be in a much stronger position to demand the full revenue from you - including payment of revenue you had already generated but paid to your father.