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Paratus AMC

Recently asked questions relating to Paratus transfer of equity

  • My Paratus mortgage 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 me solely. Do Paratus call my employer to check my salary?
  • I am hoping to refinance my flat in Witham switching from Yorkshire Bank Home Loans to Paratus. The flat is currently in joint names but propose for it to be in my name only when I remortgage. My wife has verbally consented to this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
  • I am in the process of removing a name from a joint mortgage and the Paratus require me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Witham lawyer to deal with the transfer of equity? They need to be on the Paratus conveyancing panel.
  • My existing home loan is with Paratus. Can I transfer equity to someone less than eighteen years old?
  • Me and my partner co-own a flat in Witham . Home loan is with Paratus. I want to transfer full ownership to him with no passing of money but without using a lawyer. Is this likely to be easy to so?
  • When it comes to transfer of equity conveyancing involving a remortgage with Paratus should I be invoiced VAT on the following: (1) HMLR fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
  • Is it possible to transfer the equity held in my property with my Paratus mortgage?

Sample of questions in a conveyancer questionnaire concerning a Paratus Transfer of Equity

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?

Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been formalised?

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

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

Please clarify where you are providing any payment for the Transfer of Equity and to whom and specify any such sums?

Information to consider in in addition to 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, 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 breach of your covenants under the lease. This could potentially result in 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 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 is dependent on the market value 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 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 conveyancing solicitor 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