Paragon Mortgages transfer of equity: q and a’s

• My current mortgage is with Paragon Mortgages. Can I transfer equity to someone who is not yet 18 years old?
• I intend to refinance my maisonette in Wakefield changing from Skipton to Paragon Mortgages. The apartment is jointly owned but intend for it to be in my sole name when I transfer. My former partner is OK with this and is happy to sign a form but neither of us want to get a second lawyer involved.
• I co-own a house in Sedgefield , with a Paragon Mortgages loan with my ex partner. Him and his fiance are going to buy me out. We had approval from Paragon Mortgages to remove my name with hers. The transfer of equity has to be completed by a lawyer for Paragon Mortgages (supposedly). Is it possible for us to do the Land Registry change?
• After 3 years apart I have decided to transfer my share of our former home to my husband who is re-mortgaging with Paragon Mortgages. Could this transfer of equity be done in less than one month?
• Do I need legal advice when doing a transfer of equity where the home loan is to remain with Paragon Mortgages?
• My Paragon Mortgages home loan is in joint names with ex, he is agreeable to come off the deeds and let me have the property. Paragon Mortgages have consented to the transfer of equity to me solely. Do Paragon Mortgages write my employer to check my salary?
• My decree absolute has gone through as is the consent order. Now I have to deal with the transfer of equity for the property and the Paragon Mortgages mortgage. I have called Paragon Mortgages for the transfer of equity application. What are my next steps?

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

Caveats to be read in conjunction with the above Paragon Mortgages transfer of equity Questions and Answers :

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 titles

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such terms are not adhered to you may be in breach of the lease. This could trigger 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 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 varies based on the valuation of the property at the conclusion of the transfer of equity transaction.

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 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 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.