Welcome to the trust deed forum Daisy Daisy.

I'm not sure that I'm explaining this very well, but my understanding is that the person making the payment isn't actually buying anything for themselves. All they are paying to do is to ensure that the Trustee relinquishes his/her interest (it doesn't pass to the purchaser - it just kind of disappears).

If I've explained this badly or incorrectly I'm sure one of the experts will jump in and correct me.

Thank you for your prompt reply. l have noted from the forum it is always wise to get everything in writing. ls there any kind of confirmation paperwork I could expect to receive?

You can ask for that Daisy Daisy and hopefully there will be no problem with giving you a confirmation.

Thank you TDA for your clear and concise information.

Is this payment the one (£500)where there is negative equity as Shona Maxwell describes in another post?
The payment ensures that the AIB does not see any benefit in selling the property as there is nothing to gain in terms of paying the lender(s)?
If one property has equity and another does not, would the one with equity be sold even if it was not enough after fees to settle all debts or would any profit over the mortgage owed be split among lenders equally?

If the properties were unsold at the end of the TD or Bankruptcy, can the marketing be stopped or does the IP still have a responsibility to realise any possible funds?
Does this apply with Insolvency practitioner appointed by AIB and AIB in the same way?

Hi Daisy Daisy

I'm not sure exactly what you mean, but if you mean that a third party pays the trustee the equity, then the trustee normally issues a letter discharging their interest in the property. This, however, will not be recorded in the title deeds etc.

Mark

Hi Pamjo.

In a trust deed or bankruptcy an asset will be sold (or the value of it realised in another way) only if there is a benefit to the creditors.

Some IP's make an allowance for selling costs as part of the equation while others consider that the full amount of any equity should be paid over irrespective of selling costs (assuming that the owner doesn't want the property to be sold).

Thanks TDA

I would be happy to give up one or more properties in the unlikely scenario of equity release being reasonably expected. Is £500 (If that's the right figure) fee paid only for a property I would wish to keep.
I was possibly misinformed by someone who told me none would be sold unless the likely resulting income/profit would be enough to pay all lenders what they are entitled to.
Am I misunderstanding the handling of properties in T Deed or Bankruptcy?