Can I get out of Protected Trust Deed?

Chelsiedog

I entered into a Scottish Protected Trust Deed in my own name (2 years remaining). I jointly own my house. Can we sell the house and pay whatever is needed to allow the trust deed to be discharged or am I stuck in the trust deed until the end?

Bexter

Hi there

As far as I understand it (and I have a PTD myself) - if you were to sell your house, the trustee would want all the equity to pay off what you actually owed your creditors, rather than the agreed monthly trust deed amounts. They count any assets such as houses as theirs unless you buy out the interest - you should have been advised of this as otherwise at the end of the term they could still look to take a percentage of the equity. I would speak to whoever is administering your deed about the house situation as they should advise you. Mine told me that people who didn't buy out the equity were often left owing loads at the end of the 3 years because the amount payable depends on the amount of equty - and obviosuly this can rise over the 3 yr period. You can't pay off a trust deed early as far as I know because you're not supposed to have any surplus income that hasn't been declared. Sorry - not great news but hope it helps.

Chelsiedog

Hi thanks for that. Thats what I thought the situation might be. At the time of going into the ptd the only equity I had in the house was approx £1000 and now the way the housing market has gone its gone up to about £15,000. Oh well such is life i suppose! Thanks anyway. K.