Hello liam and welcome to the forum.

Could you just confirm whether or not you have signed your Trust Deeds yet?

Hi all

I think this sums up the problem with these ?ú500 payments. Some firms charge it, but can't/don't really tell you why, some firms don't and now we have a firm advising that it is up to the individual wether this is paid or not.

My advice would be to ask the IP if this is due or not. If it is, please point to the legislation/guidance stating that it is. If you decide not to pay it, what will be the outcome and again, please point to the legislation/guidance stating this.

Mark

Hi TDA and Mark

Yes our trust deeds have been running for the last year now and it has not been mentioned but I thought I should bring it up since looking at posts on your form.
I will have to ask again Mark, they are sending out paperwork on it so hopefully I will have a better idea then. Thanks

Hi liam,

I don't think that there is a right or wrong answer to this.

If you judge that the property might increase in value before the Trust Deed ends, and that this will create equity, and that someone can come up with the money for you, I'm sure that it would be very reassuring to know that the property would not be looked at when the Trust Deed finishes.
Certainly you'd be very angry with yourself in the future if equity were created and you'd missed the opportunity to protect yourself against this.

If you're certain that the property is in negative equity to such a degree that positive equity cannot be created within the next couple of years you might consider the ?ú500 to be a waste of money.

A judgment call really.

Hi TDA

Thanks for that, it makes sense to me now! As you say its a judgement call.
Thanks again

Hi TDA

I have received a detailed letter from my trustee which basically says that as long as contributions are met for the period of the trust deed then the property will not be looked at however if payments fail this would be considered. I have decided not to pay the ?ú500 as would seem to be a waste of money. Our property will still be in negative equity at the end of the trust deed anyway.

Hi Liam

I'm glad it has finally been resolved, although the whole thing seems to be full of holes and inconsistencies. To summarise, you are asked for ?ú500 for not having equity and told you can pay it or not pay it. On asking why and for someone to point you to the correct process ( legal and/or guidance) you are now told that the info you were told before doesn't matter and the house won't be looked at if you keep up your payments!

That's certainly a new one on me. Keep up the payments and we won't bother you re the house. You couldn't make it up. Or perhaps you could!

Mark