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Paragon Mortgages

Paragon Mortgages transfer of equity example support desk enquires

  • I bought a property with my brother in 2008 Since purchasing the property, we have both got married. We are now looking to do a transfer of equity so my name is taken off the Paragon Mortgages mortgage. There is a significant difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • Can you tell me how to have someone removed off the deeds to a property where the mortgage is with Paragon Mortgages
  • My ex-wife and I are in the market for a quality conveyancing solicitor to help me sell in a transfer of equity and remortgage with Paragon Mortgages. I am aware of the dangers of getting ripped off but with many conveyancing firms who do transfer of equity conveyancing out there...who do I opt for?
  • I am trying to find a conveyancing solicitor to deal with my transfer of equity. Paragon Mortgages have been approached for a refinancing. I thought of asking my mortgage broker. I understand he may receive a referral fee for recommending someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic flawed?
  • What are the average solicitors costs are for a transfer of equity? I need to transfer equity and refinance - new loan with Paragon Mortgages - and have been quoted £350 plus VAT by Paragon Mortgages's appointed conveyancing solicitor, Have I been over quoted?
  • I am selling my equity in flat in Hendon to my co-owners fiance, they are sticking with Paragon Mortgages being the the existing lender. We are haggling as to who must cover the fees for the transfer of equity. Is this usually shared or is one of us obliged to cover the costs of?
  • Can I apply to request a further advance from Paragon Mortgages as part of a Transfer of Equity?

Sample of information requested in a conveyancing solicitor questionnaire relating to Paragon Mortgages Transfer of Equity

Please state the names and ages of anyone over the age of 17, other than the owners, who will occupy the property with you

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?

We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)

Please give the details of anyone to be added to the property title?

If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

Where you are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

General Advice to read in supporting the above Paragon Mortgages transfer of equity information :

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, 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 breach of the lease. This could potentially result in the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other situations, 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 lawyer 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 varies based on the valuation of the property at finalisation of the transfer of equity transaction.
Your property may be repossessed if you do not keep up repayments on your mortgage with Paragon Mortgages.

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 conveyancer 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.


Frequently asked questions relating to Paragon Mortgages transfer of equity