Welcome to the trust deed forum MandD1.

Where there is no equity it is possible to protect your home in this way.

You don't have to pay £500 though. Plenty of firms (including those of Mark, Kevin, Shona and Chris who answer questions here) will do exactly the same for you without charging it.

Hi MandD1

This is something more relevant to sequestration which has carried over with some firms to Trust Deeds. Personally I don't agree with this and see no justification.

I think the home is singularly the most important issue and before you sign anything, there should be absolutely no doubt or risk. A number of firms will value the property before you sign anything and if there is no equity will agree at the start ( without paying £500) that the house is not included. No 2nd valuations or other grey areas.

It is important before you do anything that you are 100% and have no doubts. Get it all in writing & everything will be fine.

Mark

Hi, I have to agree with Mark. There is no need to pay the £500 as some firms will agree not to revalue your home, without having to pay this sum. Make sure your house is valed first, and get everything in writing before you sign anything. If in doubt, stop.

Dont sign!!!!! Find another firm. A quick glance through forum threads and you will see lots of us are having problems with KPMG

My firm wouldn't revalue my property - I knew it would have decreased in value, funny how they would be happy to revalue if it had gone up [:(!]

Can only say make sure you get it in writing that the property won't be revalued, just being told something isn't good enough.

It might seem like a light at the end of the tunnel signing your TD, but for some of us it's caused more problems than it's worth. The problems with KPMG are well documented on here.

I think it's another example of double standards with some firms. If the property goes up in value, they revalue it and look for more. If it goes down in value, they do nothing and look for the equity at the start. The reason appears to be that they need to pay creditors a minimum of what was agreed at the start. Unless of course the fees are greater than previously anticipated, therefore the dividend is lower. But that's fine!

Mark

Must check through paperwork and see what it said about revaluing my property I just know when I asked them if they could do it last year, they said no not an option. Must also check and see what it said about the extortionate fees, to be honest I kind of put this aside and though will just let them get on with it as I just want it all settled and don't want to make fuss. But now I'm wondering whether I should be jumping up and down some more. Could also check what it actually said about the income and outgoings being reviewed, only know what I was told when the review was being done. I really wish I'd found this site 4 hours ago!

Please clarify or adjust where needed folks -I've tried to set out possible scenarios to help me understand this;
[?][B)]

1 - Value done at outset, no equity.leads to;
A. Company requires payment (Whatever amount they state, 'to remove
the IP's interest') to agree not to revisit the issue and the home
is not at risk ever...or

B. Company requires NO payment and agrees not to revisit the
issue and the home is not at risk ever.

2 - Value done at outset, equity agreed.leads to;
A. Company states equity, payment of stated amount is required
(Whatever amount they state, 'to remove the IP's interest')A
method of repayment by a 3rd party, of this plus the equity figure
has to be offered before the completion of the insolvency.Term can
extend to allow equity payment...or

B. Company states what the equity is, agreement reached on who will
pay (3rd party), in what manner, timescale and interval.NO payment
is required to remove the IP's interest, ever. Term can extend to
allow equity payment

3 - Value not known at outset, equity to be judged at end of
insolvency.
Client needs to identify payment method and person(3rd party) and
all payments made by lump sum /installments, by sale of property,
loan or mortgage before completion of the insolvency. Term can
extend to allow equity payment.NO payment made ever to remove IP's
interest.
I tried to keep to 3 scenarios-equity/no equity/unknown, apologies if this is too simplified, happy to see comments on my attempt.[:D]

Hi RBSB.

There may be exceptions. For example, if a client becomes uncooperative and equity has developed in their home. Also, if the home were actually sold and a surplus generated prior to discharge.

We suggest:

1: Select a firm that will value your home before the trust deed.

2: Select a firm that will clarify what will happen in terms of the property in writing before you sign a trust deed.

3: Select a firm that does not charge £500 (or another sum) to protect the equity on a property that has no equity.

4: If you have equity don't sign a trust deed unless you have a very clear, workable and pre-agreed method to deal with it.

In terms of your option 2 RBSB, If there is equity to be "bought out" I don't think firms would usually look for the £500 fee too - my impression is that this payment is usually if there is no equity or is instead of a minimal amount of equity.