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Paragon Mortgages

Sample questions relating to Paragon Mortgages transfer of equity

  • What is the process for having someone removed from the deeds to a house where the mortgage is with Paragon Mortgages
  • As things stand I have a joint Paragon Mortgages mortgage with my step-brother and am looking into the option of him taking on the whole mortgage and subtracting myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is approx 175k, and the property value is approx 600k. Is this a transfer of equity? Is land tax payable?
  • What are the average solicitors charges are for a transfer of equity? I'm in the process of remortgaging - moving over to Paragon Mortgages - and have been quoted £250 plus VAT by Paragon Mortgages's appointed conveyancer, Have I been over quoted?
  • My Paragon Mortgages home loan we jointly entered into with ex, he has agreed to come off the mortgage and put the house in my name alone. Paragon Mortgages have consented to the transfer of equity to me solely. Will Paragon Mortgages call my company to verify my salary?
  • The mortgage broker has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with Paragon Mortgages - Surely it’s easier to just instruct them?
  • Can I transfer the equity held in my property with my Paragon Mortgages home loan?
  • I got my Decree Absolute three years ago. Foolishly I never got around to change the ownership from both our names to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Paragon Mortgages is content to transfer the full equity in my name (affordability checks done). Does my ex need any legal representation?

Questions that your conveyancing solicitor could ask regarding your Paragon Mortgages Transfer of Equity

Please provide a copy of your National Insurance Number?

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

Please provide the details of anyone to be added to the property title?

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

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?

Has one of the registered owners passed away? If so please supply us with a copy of all the relevant documents e.g. the will, death certificate etc..

Caveats to be read in conjunction with the above Paragon Mortgages transfer of equity information :

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

If your property is 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 terms are not adhered to you may be in violation 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 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 is dependent on the market value of the property at finalisation of the transfer of equity transaction.
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 conveyancer 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 provided on 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.


Frequently asked questions relating to Paragon Mortgages transfer of equity