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Paragon Mortgages transfer of equity example support desk enquires

  • My mortgage broker has recommended their conveyancing solicitor for our Transfer of Equity plus remortgage with Paragon Mortgages - Surely it’s easier to just instruct them?
  • I am disposing of my equity in house in Birmingham to my co-owners fiance, they are sticking with Paragon Mortgages being the the existing lender. We are debating as to who must pay the fees for the transfer of equity. Is this usually split or is one party obliged to cover the legal bill?
  • Is there such a thing a transfer of equity stamp duty calculator?
  • Having been three years apart I have decided to relinquish up my interest in the property to my husband who is re-mortgaging with Paragon Mortgages. Can a transfer of equity be completed inside four weeks?
  • I plan to remortgage my apartment in Blaenavon switching from Nationwide to Paragon Mortgages. The maisonette is jointly owned but I would like it to be in my sole name once I transfer. My husband is OK with this and is willing to sign a form but neither of us want to get a second conveyancing solicitor involved.
  • I recently bought a apartment without my partner's name on the ownership paperwork. My lawyer said it is due to the fact that she is not in the mortgage with Paragon Mortgages. Is it possible for me to put her name on the title?
  • I already have a home loan with Paragon Mortgages and am keeping my current mortgaging but seeking to have it in my sole name so my former wife won't be on it any longer. How long does the whole transfer of equity process take?

Sample of questions in a conveyancer questionnaire relating to Paragon Mortgages Transfer of Equity

Please inform us where you are making any payment for the Transfer of Equity and to whom and specify the amount?

Please confirm whether this Transfer of Equity is part of any Matrimonial Proceedings? If so, please provide the name, address, telephone number and reference of the Matrimonial Solicitor instructed to act, along with a copy of the sealed Consent or Court Order?

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

Can you provide the details of those who jointly own the premises with you?

Would you like us to draw up a Declaration of Trust. If so are you happy to pay for the additional fee (beyond the Transfer of Equity fee)?

If you are adding a person on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.

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

Tax and Legal

There are numerous potential 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 titles

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 landlord. If such terms are not adhered to 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 pursuant to 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 is dependent on the valuation 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 lawyer 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Information provided on this webpage is for general information and only applies to England and Wales. It should not be regarded as 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