Paragon Mortgages transfer of equity example support desk enquires

• I got divorced two years ago. I simply never got around to transfer ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Paragon Mortgages is willing to transfer the full equity in my name (affordability checks done). Does she need a solicitor?
• Will I have to pay any fees for a Transfer of Equity where the existing home loan is with Paragon Mortgages?
• The mortgage broker has recommended their lawyer for our Transfer of Equity plus remortgage with Paragon Mortgages - Surely it’s easier to just instruct them?
• My Paragon Mortgages home loan we jointly entered into with ex, who has agreed to come off the deeds and put the house in my name alone. Paragon Mortgages have consented to the transfer of equity to me solely. Do Paragon Mortgages call my company to confirm my salary?
• My former wife are looking to get a lawyer in place for a new mortgage with Paragon Mortgages. Transfer of Equity conveyancing is also neededI have used the different rating based websites and the results are from all over the country. Is it important to instruct a lawyer local to us?
• Me and my partner co-own a property in Blaenavon . Home loan is with Paragon Mortgages. I want to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be simple?
• As things stand I have a joint Paragon Mortgages mortgage with my step-brother and am investigating the feasibility of him taking on the whole mortgage and subtracting myself from it, to enable me to buy a place with my soon-to-be-wife. The outstanding mortgage is about 300k, and the property value is approx 600k. Is this a transfer of equity? Is land tax due?

Examples of information requested in a lawyer form relating to Paragon Mortgages Transfer of Equity

General Advice to read in in addition to the above Paragon Mortgages transfer of equity Questions and Answers :

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 properties

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 freeholder. If such conditions are not complied with you may be in breach of your covenants under 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 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 conveyancing solicitor 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 transaction.

Preparing the Transfer of Equity with a Paragon Mortgages Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor 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.

Information contained within 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.