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Topic starter
14/05/2012 6:13 pm
Hello
This is my first post & I really hope someone can give me some advice.
I made my final payment of my 3 year trust deed at the beginning of may. I still have a £500 Nominal payment to pay which is to stop anyone going after any equity in my house (i think) as there was negative equity when i started the deed.
This was agreed to be paid £250 in June & £250 in July & this would conclude my case.
I have never missed a payment of my deed & my mothers 60th birthday is in september so i emailed my trust deed company & asked if it would at all be possible if i could pay the £500 nominal payment October & November instead of June & July & this would allow me to throw a big family party for my mothers 60th.
I recieved an email back saying that this would not be possible as at this stage they are waiting on ingather of final funds leading to the conclusion of my case.
My question is this; What would happen if I just did not pay the £500 in June & July anyway?
Would this still effect my protected deed?
Or as the final payment of the 3 years was paid in May, has the deed actually concluded & the nominal payment is just owned to the company dealing with the deed?
A friend said to just not pay it & by the time they write to me demanding payment etc it will be October anyway.
Its just that if i indeed do have to pay it now i wont be able to throw the party for my mums big birthday.
But if i dont make the nominal payment just now will i get into trouble & the whole protected trust deed agreement collape & forfiet?
After 3 years of paying & now iv got the end in site i really dont want it all to come tumbling down now.
Any advice anyone?
Many thanks for taking the time to read &/or reply
martin
14/05/2012 6:24 pm
Hi martin
It depends I suspect on the position with the property. In terms of your original agreement, I assume there was no equity and the £500 is an agreement not to have the property revalued. Worst case scenario is that it is revalued, there is equity and they seek payment of the equity.
Personally, as you will see from the forum, I hate this £500 nonsense. Unfortunately, some firms persist in applying their 'logic' in adding it.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
14/05/2012 6:31 pm
Welcome to the trust deed forum martin.
The £500 fee to protect equity (which a lot of firms no longer charge, including the four that post here) usually has to be paid by a third party, and often at the start of the trust deed.
If you were offered to pay it at the end of the trust deed then that's OK as far as you're concerned.
It basically means that a property, which had no equity at the start of the trust deed, will not be revalued again later (where it could be discovered that equity has developed if the property has increased in value, been improved, or the mortgage balance has gone down).
If you choose not to pay the £500 when your trustee wants it to be paid your property may be revalued. You'll need to assess whether there is a risk that equity has developed. If it has, you'll need to raise a sum equivalent to that equity and pay it into the trust deed. If it hasn't, you'll have saved £500.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
14/05/2012 7:57 pm
thanks for the advice guys. yes there is now equity in the property so i guess i will have to pay the £500 to stop it being re-valued.
Trust me to pick a company that still charges this fee.
many thanks agiain
martin
Topic starter
14/05/2012 8:01 pm
i find it interesting that you say the 4 that post here do not charge the £500 fee, as my company is Wylie & Bisset & they are 1 of your 4 recommended Scottish Trust Deed Firms on this site.
anyway thanks again for advice
martin
14/05/2012 9:25 pm
I did use the phrase "no longer" martin.
Three of the four used to, as did most other firms.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
14/05/2012 10:15 pm
oh ok sorry didnt mean any offence.
to be honest tim just glad to have any help in sorting my mess out & i didnt loose my house xx
15/05/2012 10:37 am
It's worth noting that if you didn't pay the £500 that you had agreed then your trustee could refuse your discharge from your debts due to non-compliance. Not a happy prospect having paid in for 3 years I'm sure you'd agree. Best not to take the risk I'd say.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
16/05/2012 9:56 am
Whilst not wanting to discuss individuals personal circumstances on a forum such as this it is important to know that not all nominal sums relate to properties with a "negative equity" position. The nominal sum may relate to "nominal equity". Would suggest in that case "some logic" is being applied to realisation of the £500 nominal sum.
Chris is not currently posting in the Trust-Deed.co.uk forum.
Topic starter
16/05/2012 3:34 pm
Just to update you all, today i recieved a phonecall with wonderfull news from one of the supervisors at Wylie & Bisset who has agreed to let me spread the £500 fee until September thus allowing me to save a little each moth for my mums party. Yay!!!
The reason he gave that they allowed me to do this is because they still have to search for any PPI on my trust deed.
He also said that the £500 is NOT my nominal fee, but actually when my property was first surveyed there was £1000 equity in it & the £500 is my share of it.
I think this is the Nominal Equity Chris speaks of above.
can i just say a BIG THANK YOU to Wylie & Bisset for being so reasonable!
maritn
16/05/2012 4:10 pm
Hi martin.
I'm glad you'll be able to save for your mother's birthday with the help of a clearly very reasonable and helpful trust deed firm.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
16/05/2012 4:33 pm
Good stuff. Enjoy the party!
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
Topic starter
16/05/2012 6:05 pm
thanks guys x
