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Scottish Trust Deed Forum
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Topic starter
18/02/2019 7:56 pm
Hi all. I have been paying my trust deed for one year at this point.
The trust deed is in my name only. There was 30k equity in our house when the trust deed was taken out and we were told that our house was in no way at risk and had been protected. We currently have a joint mortgage on the property. Things have not been good at home and I am considering moving out into a rented flat, this may be temporary or could be permanent.
I visited the citizens advice beaurau today who firstly chastised me for not setting the TD up through them and then advised me that I may not be allowed to move out my house as by taking out a TD, I had made an agreement not to get in any more debt or to take on any extra expenses and that taking on the lease on a flat is exactly that. I'm just wondering if this is correct and if I am basically trapped to stay with my wife in the house together for another 4 years.
CAB advisor had said that CWF who hold my TD could potentially force the sale of my house if I were to move out. This is definitely not an option
Would really appreciate some advice on this matter.
Thanks.
19/02/2019 8:40 am
Morning Jimbo
This is a common scenario and thank you sharing your story with the forum.
You would be unable to set up a TD through the voluntary sector as you require the services of an Insolvency Practitioner although they would have been able to direct you to a number of IPs whereby they have had positive experiences with.
When you enter a TD, you may have signed a Form 1B which in essence, is an agreement between you and your trustee in dealing with equity within your property. It is not uncommon for the trustee to agree an extension of payments over one year and that is presented to creditors during the acceptance period.
The only way in which this can be nullified is either for you not to stick to your end of the agreement (ie not make payments at the end of the deed ) or if you sell the property yourself. In this case, the trustee would be entitled to 50% of the net free proceeds.
There is really nothing preventing you from moving out and sourcing alternative accommodation however that may cause a strain on your income and expenditure. It would be good if you could let me know if your ex-life intends remaining in the property and whether she is in a position to maintain the household expenses of the property ?
Does moving property have affect your ability to make your agreed payment?
Also it would be good if you would let me know your intentions of the property - are you both looking to sell the property during the TD or if you intend leaving the property
S
Sharon is no longer posting in the forum.
21/02/2019 10:04 am
AS Sharon says, the Form 1B agreement which would have been signed at the outset of your Trust Deed is binding on your Trustee, they cannot just decide to rip it up due to a change in your circumstances.
Whether any problems arise from you moving out will depend upon your finances going forward, ie whether you can still afford to make the payments as agreed at the start.
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