Hi Annie

We seem to be going round in circles. You appear to be advising that you are speaking with a middleman company who may or may not be connected with one of the firms on the site, despite being advised not to and to approach an IP direct as they would offer clearer advice.

My advice remains as stated above. Speak directly with an IP firm and ensure you ask a the relevant questions, then ensure it is all confirmed in writing. That way you should have a full detailed list of options.

Mark

You need to be sure what you're paying for and if it will have the result you hope for. It's possible the company you've dealt with know it's likely to cost around £2000 to market and sell the property and therefore have no plan to do this. Maybe they think £500 each is a reaSonable compromise. Once you CLARIFY what the payment IS FOR, you can decide if you agree with what is reasonable etc.

I have been looking into sequestration for approx 1 year and know I will soon embark on this same journey.None of your personal belongings will be removed - unless you own a rare art / gemstone collection which could be sold to bring in funds-assuming you'd have sold some of it before getting to the stage of going ahead with Sequestration?

I don't know that any company is actively recommended here but the regular contributors, Mark, Shona & Kevin represent companies which do not charge this amount(£500 per person for a property.) Even if you did, somehow choose to go ahead with the company you've consulted, if you don't pay this fee it simply means the valuation can be redone later. That's a bit of a gamble to take regarding house prices. I personally don't expect to see growth in the next 5 years but no-one's crossing my palm and I'm not crossing anyone else's. Nobody really knows?

Shona, sorry to be picky, but this £500 is no longer stipulated by the AIB as I understand it but a hangover from earlier days? As you say, the £500 each is also regularly quoted by some firms despite only one sale being possible.
I hope Mark won't mind me quoting relevant comments vs posting the link but I think it's a very important point....

'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'

To answer simply - THERE IS NO NEED TO PAY £500!!!

If you choose a company who agree on being paid £1000 as a compromise on the equity they believe to be in your house (from your 3rd party since you can't be paying this)and agree in writing that they will not revalue your home at any later stage, be sure that is the understanding in writing and you accept the arrangement.

If you choose a company who don't charge any fee to discharge the interest, you may agree to have your 3rd party pay the £2000 equity over the 36 months or at the end.

You may wish to instruct a valuation if you believe there is less or -ve equity then you would be free to choose a company which charges both of you jointly/ individually/neither of you to state at the outset that there is no equity and it will not be revalued ever.

Don't rush into such a serious decision and try to see yourself as a customer of any company, not a patient!

Hi Pamjo.

A busy day today so I haven't had chance to comment until now (half-time, I reckon 50% of readers will know what I mean!).

Thank you for putting together such a comprehensive post on such an important topic.