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Trust Deed Scotland - Settlement Query?
My parents entered into a trust deed a few years ago which is due to complete in January.
The problem is, they seperated in August. They can no longer afford to keep the trust deed going and the house payements etc as paying 2 sets of household bills now!
The house was valued as having £20k equity at the start of the trust deed. My mum discussed with them about selling the house, giving them the 20k equity and final payements and they agreed.
At the beginning of the trust deed it was agreed that only 20k is the amount to be repayed even if house was worth more at end.
So my siblings and I decided to do some work to the house, to help raise the value, so my parents wont be left homeless and empty handed, the house sold for the price to cover mortgage, the 20k for the trust deed and an additional 12k which once lawyers fees, estate agents etc where removed would leave my parents with 5k each to try and start rebuilding their lifes.
The lawyer called my mum yesterday to confirm that all profit was being paid to her trust deed company. So she called them to find out how she would be given her money. She was then informed that she is entitled to no money! All profit will go to trust deed and it must continue to be paid til Jan too.
She was pretty upset and angry as she was mis informed. Her new home buyer is moving in on December, so if she had made the date another month it looks like she would have had her money!
Any advice or thoughts? It just seems wrong! She wasnt told this before she sold the house even though she discussed it with them. The person dealing with her and to check yesterday and came back to tell her the bad news and apologised because she didnt realise that would happen!
The problem is, they seperated in August. They can no longer afford to keep the trust deed going and the house payements etc as paying 2 sets of household bills now!
The house was valued as having £20k equity at the start of the trust deed. My mum discussed with them about selling the house, giving them the 20k equity and final payements and they agreed.
At the beginning of the trust deed it was agreed that only 20k is the amount to be repayed even if house was worth more at end.
So my siblings and I decided to do some work to the house, to help raise the value, so my parents wont be left homeless and empty handed, the house sold for the price to cover mortgage, the 20k for the trust deed and an additional 12k which once lawyers fees, estate agents etc where removed would leave my parents with 5k each to try and start rebuilding their lifes.
The lawyer called my mum yesterday to confirm that all profit was being paid to her trust deed company. So she called them to find out how she would be given her money. She was then informed that she is entitled to no money! All profit will go to trust deed and it must continue to be paid til Jan too.
She was pretty upset and angry as she was mis informed. Her new home buyer is moving in on December, so if she had made the date another month it looks like she would have had her money!
Any advice or thoughts? It just seems wrong! She wasnt told this before she sold the house even though she discussed it with them. The person dealing with her and to check yesterday and came back to tell her the bad news and apologised because she didnt realise that would happen!
0
Comments
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Hi,
According to TD any money over the sum of £200 has to be declared and go into the TD. Normally after the 36 payments of the TD the £20,000 would be due before you could be discharged (I think). If you had sold the house after the TD ended then you would have got to keep the extra over the £20,000, infortunately they are within their rights to put all the money in the TD as it has not ended yet. (I think this is correct, I'm am sure if I am wrong someone will correct me).
I know this repliy is late but thought if anyone else had a similar question and searched there would at least be an answer for them.0
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