Paragon Mortgages transfer of equity: q and a’s
- Given that we have been 5 years apart I have decided to give up my interest in our house to my husband who is re-mortgaging with Paragon Mortgages. Could this transfer of equity be done in less than 28 days?
- What is the process for adding or subtracting names (transfer of equity) to or from my Paragon Mortgages mortgage account?
- My Paragon Mortgages home loan we jointly entered into with ex, he has agreed to be removed and let me have the property. Paragon Mortgages will permit the transfer of equity to my individual name. Do Paragon Mortgages call my company to verify my salary?
- I am planning on removing a name from a joint mortgage and the Paragon Mortgages require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Miles Platting
conveyancer to deal with the transfer of equity? They need to be on the Paragon Mortgages conveyancing panel.
- I plan to refinance my apartment in Winchelsea
moving from Yorkshire Bank Home Loans to Paragon Mortgages. The home is currently in joint names but wish for it to be in my sole name as and when I remortgage. My former partner is OK with this and is willing to sign a form but neither of us want to get a second lawyer involved.
- Is it possible to transfer the equity held in my property with my Paragon Mortgages mortgage?
- I am am in need of a conveyancer to undertake my transfer of equity. Paragon Mortgages have been approached for a refinancing. I thought of asking my mortgage broker. I am lead to believe he may get a referral fee for suggesting someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Any flaws you see in this way of thinking?
Examples of questions in a conveyancing solicitor form relating to Paragon Mortgages Transfer of Equity
Please give the name(s) and addresse(s) of anyone to be extracted from the property title?
Please provide the details of anyone who jointly owns the property with you?
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Have you approached Paragon Mortgages to obtain consent to the Transfer of Equity
If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Is the transfer of equity subject to a court order? If yes please supply a copy
Information to consider in in addition to the above Paragon Mortgages transfer of equity Info :
Tax and Legal
There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Paragon Mortgages conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold properties
Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of your covenants under the lease. This could potentially result in the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your conveyancer will check with Paragon Mortgages This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back
what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects
lenders such as Paragon Mortgages or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Paragon Mortgages your property may be repossessed.
Preparing the Transfer of Equity with a Paragon Mortgages Mortgage
When it comes to preparing the the Land Registry documents your conveyancer should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.
If Paragon Mortgages is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable
if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’
On form AP1, your lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Content on this webpage is for general information and only applies to England and Wales. It does not constitute advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.