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31/05/2011 4:10 pm
Hi Guys
Just joined this forum and looking for a little help, first a little background!
I signed my Trust Deed way back on 17th April 2009, now over 2 years ago, I have made every payment on time every month, I think I now have 11 payments to make. In all that time I have had no issues really, a small hiccup with details on a Company car, not included as an asset then appeared a year later! My trustee resolved by letter to ensure it was clear this wasnt mine
One thing bothers me though, I have a letter showing the valuation of my house,letter shows £140k from Trustee, and does confirm the redemtion figure on mortgage would be over £155k, clearly showing negative equity, trustee is asking for a payment (from some other person on my behalf) of £500 to "settle their interest", I have been unable to get this paid in first 2 years
My questions are:-
1. The fact i have a letter showing negative equity, does this mean nothing can happen with my property at end of TD next April?
2. The £500, If I cant pay that by end of TD what happens?
sorry for going on, any help / advice would be appreciated!
31/05/2011 4:20 pm
Hi scooter and welcome to the trust deed forum.
This £500 payment is fairly commonplace (though isn't charged by all trust deed companies).
Your property may have been in negative equity at the start of the trust deed, but this might not be the case at the end.
If the £500 were paid no further valuation of the property would take place. Therefore if equity had developed (from increasing property prices, or the reduction of a repayment mortgage balance for example) it would not need to be paid into the trust deed.
If you don't pay the £500 there is the chance that the property will be revalued which opens up the prospect of identifying some equity that would have to be released for the trust deed.
Some questions for you to think about:
Do you think your house is still in negative equity?
Do you predict the value may increase substantially before the trust deed ends?
Safest thing of course would be to pay the £500, but you'll be able to form your own view on just how essential/urgent this is.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
31/05/2011 4:25 pm
Many thanks for your prompt response
I believe its still in negative equity, maybe not as much but still negative
Guess its best to try and get the £500 paid and not take the chance, do you think it makes any difference to when this is paid? i.e. as long as its paid before TD ends would there be no need for a further valuation or would they want to revalue given that its now over 2 years
Apologies for daft questions!
31/05/2011 4:53 pm
Not daft questions at all scooter.
It will be best to speak to your trust deed company at this stage. It's quite a while since they asked for the £500 so you'll want to make sure it's still something that is available to you.
Just so you know, the trust deed provider will probably be looking for this to be paid by a third party (i.e. anyone but you!).
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
31/05/2011 5:12 pm
Thanks for your help, will give them a call
Aware they are looking for this from a 3rd party.
many thanks again
