Sample questions relating to Paragon Mortgages transfer of equity

• I bought a flat with a friend in 2008 Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the Paragon Mortgages mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• I already have a home loan with Paragon Mortgages and am keeping my existing mortgaging but applying to have it in my name alone so my ex will be removed from the deeds. How long does the whole transfer of equity process take?
• I jointly own a flat in Friern Barnet , with a Paragon Mortgages loan with my ex husband. He and his fiance are going to acquire my share. We had approval from Paragon Mortgages to replace my name with hers. The transfer of equity has to be done by a lawyer for Paragon Mortgages (supposedly). Is it possible for us to do the Land Registry change?
• Can I transfer the equity held in my property with my Paragon Mortgages mortgage?
• Two years ago I purchased a apartment without my partner's name on the ownership paperwork. My lawyer said it is due to the fact that she was not in the loan offer with Paragon Mortgages. Is it possible for me to add her name on the title?
• I am looking for a conveyancer to undertake my transfer of equity. Paragon Mortgages are dealing with the remortgage. I considered asking my financial adviser. I understand he may receive a referral fee for recommending someone, but also of benefit will be that he knows the lawyer, has dealt with them before. Is my logic flawed?
• My partner and I co-own a flat in Wakefield . Home loan is with Paragon Mortgages. I wish to transfer full ownership to him with no exchange of money but without using a conveyancer. Do you think this should be straightforward?

Examples of questions in a lawyer form concerning a Paragon Mortgages Transfer of Equity

General Advice to read in supporting the above Paragon Mortgages transfer of equity information :

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

If your property is leasehold, the lease may require that you have a license to do so from the freeholder. If such terms are not adhered to 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 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 conveyancer 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 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 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.