Examples of recent questions relating to Paratus transfer of equity
- I acquired a house with my cousin in 2010 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 Paratus mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
- My Paratus home loan we jointly entered into with ex, who has agreed to come off the deeds and let me have the property. Paratus have consented to the transfer of equity to my individual name. Do Paratus write my employer to check my salary?
- What should I be budgeting for when it comes to what legal charges are for a transfer of equity? I need to transfer equity and remortgage - moving over to Paratus - and have been quoted Three Hundred pounds plus VAT by Paratus's approved lawyer, Have I been over quoted?
- My former wife are looking to get a lawyer lined up for a new mortgage with Paratus. Transfer of Equity conveyancing is also requiredI have used the different rating based services and the results are from all over the country. Do we need to have a conveyancer local to us?
- Can I transfer the equity held in my property with my Paratus mortgage?
- I jointly own a house in Friern Barnet
, with a Paratus loan with my former husband. He and his new partner are going to acquire my share. We had the go ahead from Paratus to substitute my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Paratus (apparently). In order to save fees can I deal with the Land Registry formalities?
- I am transferring my share of a house in Hendon to my co-owners fiance, they are sticking with Paratus being the the existing lender. We are haggling as to who should pay the fees for the transfer of equity. Should this be shared or is one party obliged to cover the charges for?
Sample of questions in a conveyancing solicitor questionnaire concerning a Paratus Transfer of Equity
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
Who will be responsible for the costs of the Transfer of Equity?
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 provide the details of anyone to be added to the property title?
Please let us know of you wish us to draft you Declaration of Trust. If so are you willing to incur the further fee (beyond the Transfer of Equity fee)?
Have you approached Paratus to seek consent to the Transfer of Equity
Caveats to be read in further to 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 titles
Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
If the transfer of equity is made pursuant to 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 conveyancing solicitor 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 market value of the property at the conclusion of the transfer of equity transaction.
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 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 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.