HI Mark

Thanks for that. I knew a valuation was needed to establish what equity there is for making payments towards the debt.
What was unclear for me was
1.whether the IP has to instruct and
2.whether the one valuation fee per property is charged and then able to be used for both joint owners in separate arrangements (say 1 Bankruptcy, 1 DAS or 2 bankruptcies)

Hi Pamjo.

If the arrangements you enter into are handled by the same firm it's difficult to see why more than one valuation would be needed.

The supervisor of the arrangements will almost certainly want to instruct the valuations.

The trustee would normally instruct one valuation, though has the discretion to accept an existing valuation that has been done recently as long as it is from a fully qualified surveyor.

Thanks all!

Hi Pamjo

As said, the valuation is normally instrucyed by the IP. Although we do not charge the £500, I cannot belive that anyone would charge £500 each - after all, it is only one house we are taling about. If the Trustee was going to sell the house - they could only sell it once!!!! This is a con.

I called it greed but agree with you!

The arguement put to me was along the same lines as the reasoning for both parties to a joint loan having the full amount itemised in a list of debts outstanding. As time goes on and I absorb more of the info and responses here, I get it that the lenders are more likely to lend in the first place to joint borrowers-where we all (jo public)believed it was due to social acceptability etc, presumed stability, however, the likelihood of achieving repayment is clearly the motivation-it does help to see it from the lenders' viewpoint. When it comes to the nominal fee to discharge the equity, I assumed it was down to individuals needing to apply to be removed from the standard security. There is still a lot more mis-information(even when speaking with professional and recommended advisors) than factual current information. I hugely appreciate this forum-thank you all.

there is a lot to take in, which is why you should never feel rushed into anything. Take your time, until you feel ready. Glad you are enjoying the forum.

Well said Mark McFadyen!

quote:

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Originally posted by Mark McFadyen

Hi Pamjo

There are 2 points here. Firstly the equity position is not in the Act, it is guidance to Trustees and secondly they refer to nominal amounts. Is £500 or £1000 nominal? Not in my world!!

I am surprised at Barry's comment that it is set by the AIB. It is not. Any talk of £500 by the AIB refers to pre 1993 public funded cases. As I have stated previously, this was in an age when we registered title to property and then had this discharged and the cost was to cover the legal costs in this.

It refers specifically to 'a nominal sum sufficient to cover the trustee's costs in relation to the property and its disposition' For my firm this is 2 x £15 which are outlays in the Trust Deed. These are the Registers of Scotland costs for inhibition registration and also discharge. I wonder how many Trustees go to the bother of registering title?

Here you go, chaper and verse of the guidance from the AIB below.

'In some cases the property may remain unsold because there is no present equity. Unless there is a reasonable prospect of the equity position changing in the foreseeable future, the trustee may not wish to remain in office and may wish to obtain his discharge.

In these circumstances the trustee should attempt to reach an agreement with the debtor whereby the trustee would formally relinquish his interest in the property upon payment of a nominal sum sufficient to cover the trustee's costs in relation to the property and its disposition'

Mark

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We paid a 'nominal' fee of £150 four years ago with WA, my my it has increased! I am seeing a lot of different complaints on here to do with WA, it seems I am not the only one!

Some firms charge a nominal fee Happy2.

Some do not.

There's nothing inherently wrong with charging such a fee. Where charged its used to increase the returns to creditors.

There is of course some benefit in future users of trust deeds knowing that they have a choice as to whether they need to pay this (via their selection of a firm to help them).

Entering a Trust Deed is stressful - never mind trying to find £500 to protect equity.

Why don't all firms show transparency with this matter and save all the stress.....

As Mark said £30 and it is included in the TD! Simples!

I guess that every firm has to make their own call on that subject Neverendingstory.

There do seem to be fewer firms around charging this now so something is apparently changing.