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Paratus AMC

Examples of recent questions relating to Paratus transfer of equity

  • Having been a number of years estranged I have opted to transfer my interest in the property to my husband who is re-mortgaging with Paratus. Can a transfer of equity be completed within 28 days?
  • Law week I split up with my ex of thirty years. I'm now living with my mum and dad and she wishes to remain in the property and pay me off. What portion am I entitled to. Is it half of the equity after discharging the Paratus home loan? I assume proper valuations are necessary but I would like to be confident that I'm getting the best deal
  • My fiance and I have 50:50 shares in a investment property. I am a top rate tax payer. Ideally I wish to complete a transfer of equity to her sole name to reduce our tax on the letting income. If Paratus are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents would I lose my CGT relief.
  • My partner and I jointly own a flat in Wakefield . Home loan is with Paratus. I want to transfer full ownership to him with no passing of money but without using a conveyancing solicitor. Do you think this should be simple?
  • I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
  • My existing home loan is with Paratus. Can I transfer equity to someone who is not yet eighteen years old?
  • What if my application doesn't meet Paratus lending criteria for a transfer of equity?

Sample of information requested in a conveyancing solicitor questionnaire concerning a Paratus Transfer of Equity

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

Has one of the registered owners died? If so please supply us with a copy of the Death Certificate, Probate and a copy of the Will.

If you are adding someone on to the property how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” 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?

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

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

Important warnings to consider in supporting the above Paratus transfer of equity Questions and Answers :

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 require that you have a license to do so from 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 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 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.
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 conveyancing solicitor 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 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 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