Did you get the assurances arround your house value from the Trustee prior to signing the Trust Deed? An expert will confirm shortly but I was sure if this was recieved then any inclrease of the house value would not be taken into account for the lift of the Trust Deed.

Yes verbal assurance but nothing in writing at the time.

Hi Peltier

at the outset was there a nominal fee of £500 paid from a third party to relinquish their interest in the property. Has there been a recent valuation carried out that's why they say there is £5k outstanding.

Ahh.... From what I know (which isnt allot on this subejct) you need it in writing. The company I'm goign with featured on this site do this for example.

Verbaly wont stand up for much and you may be at their reasonable mercy.

As said before an expert will confirm this all for you shortly.

On the Trustees abstract of receipts and payments there is a £500 amount showing against the property but no payment has been made.

Also there has not been a recent valuation carried out. Only one done was 11th October and the sequestration was granted on 5th September 2011.

was it October 2012 it was carried out.

I'm assuming it was October 2011. Then at that time if there was no equity. This would have been sent in writing and the option of discharging via a nominal fee of £500 via a third party, would relinquish the trustees interest in the property.If this has not been paid generally within 6 months, they can get a further valuation done via a drive by and this is how they have come to the £5k or they have an up to date redemption figure and minus the value at October 2011 this is how they have worked it out. If they have not given you a timescale of when the £500 is to be paid, you could offer that via a third party now.
Give the Trustee a call and establish how they come to the £5k. If they were to sell the property the £5k would be taken up by selling costs and they would probably not get anything.