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Paratus AMC

Paratus transfer of equity example support desk enquires

  • I am led to believe we would need at least AP1 and Transfer Deed. Is this true?
  • Paratus have just agreed I can take over the home loan on my home. I have applied for a transfer of equity but presumably there is a transfer of ownership of the house on top?
  • I got divorced in 2012. Foolishly I never got around to transfer ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Paratus is happy to transfer the full equity in my name (financial checks done). Does my ex need a lawyer?
  • The mortgage broker has recommended their conveyancer for our Transfer of Equity plus remortgage with Paratus - Surely it’s advisable to just instruct them?
  • I already have a mortgage with Paratus and am maintaining my current mortgaging but seeking to have have the equity transferred to my sole name so my ex won't be on it any longer. How long do Paratus take to process the application?
  • Me and a friend got a joint mortgage with Paratus on a flat in 2013. I am now looking to get a house on my own and my friend would like to buy me out. Assuming we can agree a figure where do we go? Would there be any potential problem with Paratus with him being solely liable for the total loan rather than only part of it?
  • Taking into account that we have been a number of years separated I have made the decision to transfer my share of the flat to my husband who is re-mortgaging with Paratus. Can a transfer of equity be completed in one month?

Examples of questions in a lawyer questionnaire relating to Paratus Transfer of Equity

Has consent been obtained from Paratus to the proposed transfer of equity?

We need you to provide the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)

If are intent on holding the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?

Would you like us to prepare Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?

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

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

Caveats to be read in supporting the above Paratus 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 Paratus conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold titles

Should the tenure of your property be leasehold, provisions in the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach 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 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 Paratus 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 Paratus 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 conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with Paratus.

Preparing the Transfer of Equity with a Paratus 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 Paratus 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 Paratus AMC transfer of equity