Are you sure it's £500 each? seems so high an amount.In my mind it was a case of you were asked if you wanted to pay this or take a chance house prices wouldn't go up. Could be remembering wrongly though. ours was £250 each. We were just in neg equity and didn't want to chance our home increasing in value. Glad we did as our area housing values have went up during the past three years.

Someone will around who will know the facts, good luck

Thats what i was led to believe too but it seems i was wrong. Definately £500 each though. Seemingly it did change to £500 per house but since they say ours was agreed before it changed then its too bad!

Something which should be clarified at the start of a td. Whats in your paperwork regarding this payment for something that doesn't exist??

Paul

I would read through your paper work carefully. If it is noted that you opt out of doing this as the house had no equity in it I do not see how they can then retrospectivly ask you to pay the amount.

I was also under the impression that this fee was expected at the begingin of the trust deed (within the first 6 months) and had to be paid by a third party (someone with no attachment to the debt or property) as they efectivly are buying out the equity of the property.

TDA or one of the expert team will confirm this shortly I am sure.

Colski

I think colski is right to say you should check your paperwork carefully and see if it sets out exactly what you agreed to in this respect. This £500 payment isn't necessarily optional - I believe some IPs seek payment of this regardless, though this should of course be made clear to you before you sign up.