Paragon Mortgages transfer of equity example support desk enquires

• Am I best advised cancel my mortgage payments with Paragon Mortgages once a date for my remortgage and transfer of equity has been agreed?
• My former wife are seeking to get a conveyancing solicitor in place for a new mortgage with Paragon Mortgages. Transfer of Equity conveyancing is also necessaryI have used the different rating based tools and the results are from all over the country. Do we need to appoint a conveyancer local to us?
• Law month I separated from my partner of 18 years. I'm now living with my mum and dad and she wants to remain in the flat and buy me out. What portion am I entitled to. Is it half of the equity after discharging the mortgage with Paragon Mortgages? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to
• What if my application doesn't meet Paragon Mortgages lending criteria for a transfer of equity?
• I got my Decree Absolute in 2010. Foolishly I never dealt with the change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is needed. Paragon Mortgages is content to transfer the property and loan in my name (affordability checks done). Does my ex need a conveyancer?
• My divorce has gone through as is the consent order. Now I have to sort out the transfer of equity at the HMLR and the Paragon Mortgages mortgage. I have called Paragon Mortgages for the transfer of equity forms. What are my next steps?
• My ex-wife and I are are seeking to find an affordable conveyancing solicitor to assist in a transfer of equity and remortgage with Paragon Mortgages. I am aware of the dangers of getting ripped off but with plenty conveyancing practices who do transfer of equity conveyancing to pick from...who do I opt for?

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

Caveats to be read in supporting the above Paragon Mortgages transfer of equity Advice :

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, provisions in 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 your covenants under 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 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 market value of the property at the conclusion of the transfer of equity conveyancing.

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 conveyancer 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 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.