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Paragon Mortgages

Examples of recent questions relating to Paragon Mortgages transfer of equity

  • What are the average solicitors fees are for a transfer of equity? I need to transfer equity and remortgage - new loan with Paragon Mortgages - and have been quoted Four Hundred pounds excluding VAT by Paragon Mortgages's approved lawyer, Have I been over quoted?
  • Is it possible to apply to request more money from Paragon Mortgages as part of a Transfer of Equity?
  • What legal advice do I need when doing a transfer of equity where the home loan is to remain with Paragon Mortgages?
  • Have recently separated from my wife of twenty years. I'm now living with my mum and dad and she wants to remain in the apartment and buy me out. What percentage am I entitled to. Is it 50% of the equity after discharging the Paragon Mortgages home loan? I assume proper valuations are necessary but I really need to be confident that I'm getting what I am entitled to
  • I plan to remortgage my home in Blaenavon changing from Barnsley BS to Paragon Mortgages. The flat is jointly owned but I would like it to be in my name only once I remortgage. My husband has verbally consented to this and is happy to sign a form but neither of us want to get a second conveyancer involved.
  • I am searching for an affordable conveyancing lawyer to help me sell in a transfer of equity and remortgage with Paragon Mortgages. I I am fearful of being overcharged and there's many conveyancing practices who do transfer of equity conveyancing out there...how do I know which one to appoint?
  • I understand we would need at least AP1 and Transfer Deed. Is this true?

Information that may be required from your conveyancing solicitor may ask in relation to your Paragon Mortgages Transfer of Equity

Please provide the name(s) and addresse(s) of anyone to be removed from the property title?

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

Please list all persons who occupy the property, their respective ages and relationships to you.

Is the transfer of equity subject to a court order? If yes please supply a copy

If 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?

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

Information to consider in supporting 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, 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 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 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 the time of completion of the transfer of equity conveyancing.
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 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 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 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