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Common questions relating to Paragon Mortgages transfer of equity

  • Been looking at online blogs that solicitors are more expensive than licensed conveyancers for transfer of equity conveyancing. Am I better of using a conveyancer or a solicitor where I need to be transferring equity and at the same time refinancing with Paragon Mortgages
  • I am planning on removing a name from a joint mortgage and the Paragon Mortgages need me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Winchelsea conveyancer to deal with the transfer of equity? They need to be on the Paragon Mortgages conveyancing panel.
  • Last year bought a flat without my partner's name on the ownership paperwork. My lawyer advised it is due to the fact that she was not in the mortgage with Paragon Mortgages. I'm wondering is there any way that I can put her name on the title?
  • My fiance and myself equally own a investment property. I am a higher rate tax payer. Preferably I wish to do a transfer of equity to her sole name to reduce our tax on rental income. Assuming Paragon Mortgages are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? Would my GGT relief be lost.
  • Me and my former fiance and I are are looking to find a dependable conveyancing solicitor to assist in a transfer of equity and remortgage with Paragon Mortgages. I I am concerned about appointing the wrong one but with various conveyancing solicitors who do transfer of equity conveyancing out there...how do I know which one is best appoint?
  • Our financial adviser has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with Paragon Mortgages - Is it not simpler better to just instruct them?
  • Me and a friend got a joint mortgage with Paragon Mortgages on a house about a year ago. I am now looking to get a flat by myself and my friend would like to buy me out. Assuming we can agree a price what happens next? Is there likely to be any problem with Paragon Mortgages with him being responsible for the total mortgage as opposed to only part of it?

Information that may be required from your conveyancer is likely to ask regarding your Paragon Mortgages Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Will there be any consideration monies passing between the parties for the Transfer of Equity? Where this is the case, please state the amount and who is to receive what figure

Have you approached Paragon Mortgages to obtain consent to the Transfer of Equity

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?

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

Please confirm the person to be removed from the title deeds will not reside at the property after completion of the Transfer of Equity?

General Advice to 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 premises

If your property is leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such conditions are not strictly observed 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 as a result of 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 valuation of the property at the conclusion 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 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.

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.


Frequently asked questions relating to Paragon Mortgages transfer of equity