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Paratus AMC

Top seven questions relating to Paratus transfer of equity

  • I am transferring my share of a property in Woodside to my co-owners husband, they are sticking with Paratus being the the existing lender. We are in heated discussion as to who should cover the fees for the transfer of equity. Should this be split or is one of us liable for the fees for?
  • My Paratus mortgage is in joint names with ex, who is agreeable to come off the deeds and put the house in my name alone. Paratus will permit the transfer of equity to me solely. Do Paratus contact my employer to confirm my salary?
  • Do I need legal representation when doing a transfer of equity where the home loan is to remain with Paratus?
  • I currently have a joint Paratus mortgage with my step-brother and am looking into the option of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to purchase a property with my fiance. The remaining mortgage is about 200k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax payable?
  • I am mortgaging my flat in Witham does my lawyer need to be on the Paratus Solicitor panel. The conveyancing also involves a transfer of equity.
  • My current mortgage is with Paratus. Can I transfer equity to someone less than eighteen years old?
  • In 2012 I bought a house without my partner's name on the deeds. My conveyancing solicitor said it is due to the fact that she is not in the loan offer with Paratus. I'm wondering is there any way that I can put her name on the deeds?

Sample of questions in a conveyancing solicitor questionnaire concerning a Paratus Transfer of Equity

Have you approached Paratus to obtain consent to the Transfer of Equity

If you are adding someone on to the title deeds how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Form.

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

Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?

Is the transfer of equity subject to a court order? If yes please supply a copy

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

General Advice to read in supplemental the above Paratus transfer of equity Info :

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 premises

Should the tenure of your property be leasehold, 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 complied with you may be in breach 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 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 conveyancer 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 varies based on the valuation of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Paratus your property may be repossessed.

Preparing the Transfer of Equity with a Paratus 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 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.

Content 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 Paratus AMC transfer of equity