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Scottish Trust Deed Forum
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Topic starter
27/07/2014 11:04 am
Morning,
After more than 4 years, I am due to make the final payment of my PTD tomorrow.
Overall, it's been a slog at times but has taught me a valuable lesson about financial management and I feel I'm in a better place as a result. I plan to save the £180 a month going forward and strictly living within my means.
During the term of the PTD, I had to get essential work done on my property (hence the payments running over 4 years) and my trustee was happy for me to extend the term to allow the work to be done.
I have really been happy with the whole process but reading through some of the threads on here, I am starting to worry a little about the discharge process.
I am sure I was fully advised of the process before entering into the agreement, but I have some concerns about equity in the property during the discharge process.
If anything, there may be a few thousand pounds equity, certainly no more than this but I was wondering:
a. Will my trustee look to realise any equity in the property, regardless of the amount?
b. If it were to be the case that I'm due to pay money from any equity, is there a set timescale for me to make this payment?
Thank you in advance for any info you can provide 🙂
27/07/2014 12:15 pm
Hi Oswald
I think this is something only your trustee can answer.
The normal process would be to agree the equity figure at the start and once the final contribution payment is made, then the Trust Deed is extended to make ongoing payments in reduction of the equity. As for timescale, I dont think an extension of a year or 2 would be out of the question, although again this will be at the discretion of the trustee.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
27/07/2014 1:17 pm
Welcome to the forum Oswald.
To add to Mark's comments there are a couple of other things worth mentioning:
1: The valuations used for trust deeds sometimes come in a bit lower than people expect. They're based on a realistic view of a selling price for a relatively prompt sale, rather than a target valuation that you might sometimes get from an ambitious estate agent.
2: Some trust deed providers make an allowance of a few thousand pounds to reflect what the selling costs for the property would be if it had to be sold.
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Topic starter
27/07/2014 1:46 pm
Thanks to both of you for your thoughts on the situation.
I'm sure I'll have a chat with my trustee tomorrow, I was just wondering if there was a general approach to these situations.
Best of luck to those still on a TD 🙂
28/07/2014 2:34 pm
Hi Oswald,
Well done on reaching this point in your Trust Deed journey.
It's good to see that your Trustee has been understanding and flexible when it comes to things like essential work on your property.
How did you get on having a chat with your Trustee regarding the equity within your property?
David is not currently posting in the Trust-Deed.co.uk forum
