Examples of recent questions relating to Paratus transfer of equity
- I own a flat in Littleborough
, with a Paratus mortgage with my ex partner. Him and his fiance are going to buy me out. We had the go ahead from Paratus to remove my name with hers. The transfer of equity needs to be completed by a conveyancer for Paratus (supposedly). Is it possible for us to deal with the Land Registry change?
- In 2013 I bought a property without my fiance’s name on the title documents. My conveyancing solicitor said it is because she was not in the mortgage with Paratus. Is it possible for me to add her name on the title?
- I am hoping to refinance my apartment in Dunnington
moving from Yorkshire Building Society to Paratus. The apartment is jointly owned but intend for it to be in my name only when I transfer. My former partner is OK with this and is happy to sign a form but neither of us want to get a second conveyancing solicitor involved.
- My mum died half a year ago leaving a mortgage-free semi to me and my half brother equally. Having continues to reside at the property, there was a condition in the will specifying that the housecould not be sold for three years following her death so he could continue to live there for a prescribed period. He now wishes to remain in the house beyond the specified period. We have considered a transfer of equity. Would I be right in thinking that we should get a valuation then he'd get a home loan in the traditional way to acquire my half from me?
- When it comes to transfer of equity conveyancing involving refinance with Paratus should I be invoiced value added tax on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My divorce is through as is the consent order. Now I have to sort out the transfer of equity on title deeds and the Paratus mortgage. I have asked Paratus for the transfer of equity forms. What are my next steps?
- I bought a house with my cousin six years ago Since then, 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 significant difference between the value the bank say and what the property would sell for currently. Can you offer any advice?
Examples of information requested in a lawyer questionnaire relating to Paratus Transfer of Equity
Is it the case that one of the registered owners died? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Where you are adding someone on to the title deeds how would you like to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please let us know of you wish us to draft you Declaration of Trust. If so are you happy to incur the additional fee (beyond the Transfer of Equity fee)?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and provide details of the amount?
We need you to supply the National Insurance Number(s) of all the new owners (required for submission of the SDLT Form)
Can you give the name(s) and addresse(s) of those who jointly own the property with you?
Important warnings to consider in supplemental the above Paratus transfer of equity information :
Tax and Legal
There may be various 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, provisions in the lease may require that you obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could potentially result in 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 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 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 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.