Hi Eoinbaby

Aaaarrrgghhhh!! This £500 is becoming my pet hate.

You will see from other posts, some firms charge this and some do not. The £500 is taken from sequestration guidance which does not automatically pass over to Trust Deeds. I could go on re tyhe history of this, but suffice to say, some firms dont bother with this.

Re the purchase, fraud is a very strong term and very generally I have never seen in 25+ years a creditor pursuing for the repayment of this. It is of course at the discretion of the credit card company.

On the equity, I assume a valuation has been instructed and a copy of the mortgage redemption figure obtained to get to the £4000. Although the round figure of exactly £4k would perhaps suggest they haven't.

Mark

Hi ,
Yes valuations were obtained last week and I had redemption figures calculated. Am I right in thinking then that the £500 per property that can be charged is therefore a gain made by the company organising the Trust Deed and does not go directly to the creditors. I am finding this so stressful as I came to the descision of going down the road of a Trust Deed after meeting with the CAB but now I am worried that I pay more than I have to.

Hi Lesley

No the £500 would go to the big pot for the benefit of creditors. As mentioned a large number of firms do not charge this in Trust Deeds and take the position that if there is no equity, then that is the end of the matter.

Proceeding with a Trust Deed should take away all the unknowns and leave you with a clear & precise way forward, particulary with property, contributions and time period.

Mark

Hopefully you've not signed up yet for the arrangement you describe. Get further information, there are many choices of firms who don't penalise you for owning a property in negative equity.

quote:

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Originally posted by RockBottomSolidBase

Hopefully you've not signed up yet for the arrangement you describe. Get further information, there are many choices of firms who don't penalise you for owning a property in negative equity.

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Yup.
Call one of the firms who have experts posting on this forum.
You may find you could save yourself a lot of stress and a not have to borrow even more money from a 3rd party

Is it normal for the £500 to be paid by a third party and if so, what is the reason for that?

I've got to pay £500, but I was under the impression that it was all included in our fees? I don't remember them telling us that a third party had to pay for it.

Thanks

It should normally be from a 3rd party Trixie1980.

The reason is that, if you have this cash spare, it should probably be being paid into your trust deed already as part of your income-based contribution.

Where this £500 fee is charged it's in addition to any assessed affordable contributions from income.

Thanks TDA, I've just asked my husband about his as we're with the same company and he said the same that its been built into the fees.

Think I'll drop them an email to clarify!

Is it actually going to help you Trixie1980?

Do you have a third party to pay it if it changed?

Yeah I'm sure someone would pay it for us. I'm just worried something catches us by surprise at some point on this journey, seen a few horror stories on here!!

The experts on here have said time and again to ensure the equity issue is dealt with, just worried something happens along the way.

We have a family friend who has a trust deed with a firm which insists on the £500 fee to relinquish interest in the property. We plan to pay this fee on our friend's behalf. When we do so, should we expect to be given a document by the firm formally relinquishing interest in the property?
I wouldn't feel comfortable handing over £500 with nothing concrete in return.

Hi gleamac

I certainly would noy hand over anything unless you get full confirmation, in writing, that the payment fully discharges the Trustee's interest.

Mark

I think there is some merit in speaking to at least 2 different firms to give you peace if mind that you have explored different options.

Some firms take the £500 renounciation fee per property from a third party in Trust Deeds, some do not. It's not the be and end all so make sure and consider the fees and renounciation as a whole and not just assume if someone does not charge for this that it they are cheaper overall!

Each firm may have a different view on the £500 renounciation where there is more than 1 property. It may be assumed that more than 1 property is not a necessity and therefore a £500 charged for each additional property. Again, it will vary between firms.

As others have advised, the Trustee has no further interest in a property where no equity exhists, when they receive £500 from a third party to effectively remove it from ones estate.