Hi Kazza. not too long to go now!

There is no reason why you shouldn't be able to stay on the increased payment rate and finish your Trust Deed sooner as a result. I would just confirm that is your intention with your trustee once you get to that point.

You aren't discharged until the equity is paid too I'm afraid.

Sorry to jump in on your post Kazza. I am about to end my 4 year legal term June 2022 but have two more extra years due to equity on my houses.

My question is, would I be able to sell my flat that I rent to pay off the equity which is only £2790.00 per year (£5940) and finish off my TD in 2022 instead of 2024?

Many thanks,

BMC

Hi BMC,

I think this is a question you'll need to put directly to your trustee.

Kevin or Paul may be able to advise you further, but I think we've read here before that the precise wording of your trust deed could affect what happens with received lump sums (such as the sale of a property) once the minimum four year legal term has ended (but before you have been discharged).

The question is whether your trustee would feel compelled to collect in all of the proceeds of the sold flat rather than just the £5,940 which was initially agreed in lieu of the assets you owned when your trust deed began.

Hi TDA,

Thank you for your reply. I really appreciate this. If Paul or Kevin can also advise that would be fantastic. I will speak with my trustee closer to the time when my 4 year is about to end and try and negotiate some sort of deal. I have a car that is fully paid for and has a current value of £8000 which I no longer use. I can only hope that they consider as we desperately want to sell the flat as it has become such a burden.

Thanks again.
BMC

I think it is likely that your trustee would insist that if the property is sold then your share of any proceeds would have to be paid in, I'm afraid. The "buy-out" agreement you made when setting up the Trust Deed was so that a sale of your property wouldn't be forced, but if you are selling anyway then that is different.

Was there not an agreement regarding the value of your car too?

Hi Kevin,

Thank you for your reply.

We want to sell the property after all payments have been made, but we would like to use or ask that they consider raising the monthly payment to reduce the period of time. My car is part of it, but when i made inquiries about finishing early I was told I would be able to use the car to be released early. I'm going into the 4th year now so will call them again to check to make sure that this can still happen.

Thanks again.

BMC