Hi mapleleaf.

If it was an "offer" that this £500 be paid over, the end-result of not paying it is that the property might be revalued. If there's still no equity someone has saved £500, if there is equity there might be some challenges ahead to raise it.

If you agreed to pay over this £500 as part of your trust deed (a subtle difference from an "offer") you may need to make the sum up with extra contributions when the usual term ends.

This might also be worth clarifying with your trustee so that you're sure on the position.

Agree TDA - any offer the Trustee has put to the Creditors in relation to Dividends would have been based upon receiving the £500 (nominal sum) - and also agree that it is worth clarifying with the Trustee on the position and whether they would accept extra contributions to settle the issue.

Chris

Thanks, never thought of it that way. A letter I have basically says that if I don't submit proposals for a 3rd party paying their £500 interest in the property, then they will have to revalue it at the end of the TD and their interest may well have gone up.

Hi Mapleleaf, I was in a similar position and agreed with my TD that I would pay toward the end of the TD. Similar position of -ve equity. My TD ended recently and I got the final statement recently and they still took te £500 out of the pot (disgraceful), so in the end I paid 1k.

For peace of mind would pay the 500 via 3rd party if you can. In saying that, with the economy in just a bad state if not worse than 3 years away, you may be ok.

My Trust Deed ends in June 2012 and I was told that a redemption figure had never been agreed on my equity. I was paying £100 a month and was told that at the end of my Trust Deed I would have to pay some additional payments to which I was happy to do so. I've now been told that the redemption figure was never confirmed and that I might have to continue paying until next year. However a few weeks ago I was told my equity was based on a figure of £4500 and that would take me to November this year to have this paid off with my monthly contributions. HELP!!!

Sounds like you need to get some clarification from your trustee. Have they now got a settlement figure? Was that figure from when you started the trust deed or a current one? Have they done a valuation? When was this done?

I was told that if I paid £100 a month towards equity I would be left with a couple of extra payments and this has now increased to 6 payments with them trying to increase it more I think from the phone conversations. A valuation was carried out at the beginning of my trust deed and they had a figure of £4500 approx and now there saying that was never confirmed. They are now trying to get a redemption figure ut I'm worried that this will now be higher as I've paid an additional 36 monthly payments to my mortgage.