Decision Makers Guide - DMG42012

Fixed term investments

In valuing such investments the decision maker should note the following.
1) Building societies normally arrange to release money before the end of the fixed term if the applicant alleges hardship.

2) The decision maker should take these investments at their face value unless there is evidence that the surrender value at the date of the application is different.

3) Where 2 applies the decision maker should take into account the current surrender value.

4) If applicant's provide evidence that they cannot realise a fixed term investment until the completion of the fixed term, the value of that investment depends on whether the agreement allows the investment to be assigned to a third party (which is usually the case).

5) If an investment can be assigned to a third party, it has a market value which the decision maker should take into account.

6) An asset in 5. is a chose in action (DMG42030).

7) In the rare case where restrictions prevent its assignment, an investment's market value is nil.