Hi Rooked

The reason it's changing is because there is nothing to state this needs to be paid in 6 months, or 12 months etc.

Interesting that you are both being asked for £500 when it's 1 house! Because it is jointly owned, will the value double more than other property? Of course not. Ask the for chapter and verse on this £500 position.

Mark

Hi Rooked, myself and my partner were too asked to pay £500 to protect the equity on our property. When the trust deed provider got my house valued, it was in negative equity. We never paid the £500 (or £1000 as we were also asked for £500 each) because of this. We queried when it needed to be paid, for the other day and were told it had to be paid within the year. We were never informed of this at the start and it mentions no time limit on any of our documents. Like Mark said I too will be asking for chapter and verse on this!!

I was told of the £500 to protect any equity at the end at the first meeting. My valuation was negative equity. I was able to do the £500 divided in my first two payments towards my trust deed.

Hi all

Please see below the notes for guidance which ALL IP's work under. The notes are for sequestrations and on the basis that the same rules apply, per our guidance:

ÔÇó If there is little or no equity, can title be transferred for a nominal sum? ?á

ÔÇóThe Accountant recommends that the trustee should not wait for it to appreciate in value unless there is no cooperation from the debtor,spouse or coowner. ?áIf the debtor does not wish a formal reconveyance the trustee should consider issuing the letter at Form formally abandoning his interest.
?á
Hopefully you noticed 'a nominal sum' not £500 or 2x £500.

On the basis of the above, if the property was owned by 4 people, would it be 4 x £500?

Mark

Thanks for all the replies, I'll look into this on Monday morning.

It's my understanding that the £500 figure is indeed the "nominal sum" to which the Guidance refers - don't ask me why but this figure seems to be the prevailing one among IPs. However, I do agree that it should not be paid twice when there are joint owners, though I don't believe that there are any fixed rules on this I'm afraid.

Hi,

I've just been reading through some of the threads on the forum and noticed this one. I am 19 months into my Trust Deed. There was nil equity in my property when i started. I was advised by my IP to pay £500 to secure future equity but at the time it was not financially possible. I am concerned now about what will happen at the end of my payment term.

Can you pay the £500 bond this late into the Trust Deed or must it have been paid within the first 6 months?

Many thanks

Hi Rosie.

I'd suggest that you contact your Trustee to ask this question. It might be possible as, in general, properties have not gone up in value.

The danger is that if it isn't paid the property is revalued and any equity that has built up (either from increases in the value or because some of the mortgage balance has been repaid) has to be handed over.

For homeowners considering starting a trust deed please be aware there is no need to pay this £500 fee. Other trust deed companies can provide the same benefits (for a property that has no equity or negative equity) without that charge.

Hi Rooked

I am in agreement with all of the others, it is a nominal sum per house, not per person, and as TDA says it is not always necessary now. Go back to your Trustee...good luck.

Glad someone raised this issue, been confused reading things elsewhere - ended up being unsure if I should have bothered paying the £500 incase there were any 'come backs', as in they could still request any equity at the end of the trust deed despite paying the £500.

My trust deed provider originally told me it had to be paid within the 1st year, works out about £40 something a month, however no-one actually bothered contacting me to set it up. I did start paying it but it was about 4 or 5 month into the trust deed so obviously its not goin to be paid in full within the 1st year, they've said this will be fine now.

Can someone clarify that as long as it is paid, should there be any equity in my property at the end of the 3 years, it cannot be touched ??

Hi Me2011.

It shouldn't be touched, and we've never heard that is has been, after £500 for that purpose has been paid as agreed with the Trustee and all other commitments to the trust deed have been completed.

Hi me2011

Re the payment, I assume from your post that you are paying this £40 over the next 12+ months or so in addition to your contribution?

Mark

Hi Folks,

I have around 10-14K negative equity in my home and can't see the value of the house increasing by this in the next 3 years. Whilst I am still at the early stages (should be gazetted this friday), my understanding is that my trustee is just going to exclude my property from the whole thing. Is this possible? Nobody has mentioned £500 to me, but it seems to be a common subject on here.

Thanks

Hi skintally

There is a facility for a trustee to exclude property, however the mechanics are very difficult.

I suspect your trustee has just reported to creditors that there's no equity and hopefully that will be the end of it.

Mark