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Find a Law Firm for your Transfer of Equity approved by
Paratus AMC

Sample questions relating to Paratus transfer of equity

  • I got divorced three years ago. For some reason I never got around to transfer ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Paratus is willing to transfer the property and loan in my name (financial checks done). Does she need any legal representation?
  • Last year bought a flat without my fiance’s name on the title. My conveyancer claimed it is because she is not in the loan offer with Paratus. Is it possible for me to put her name on the documents at HM Land Registry?
  • Is it sensible to cancel my mortgage payments with Paratus as soon as a date for my remortgage and transfer of equity has been set?
  • What legal advice do I need when doing a transfer of equity where the home loan is to remain with Paratus?
  • I currently have a joint Paratus mortgage with my cousin and am looking into the possibility of him assuming responsibility for the outstanding mortgage and subtracting myself from it, to enable me to purchase somewhere with my fiance. The remaining mortgage is approx 200k, and the property value is approx 450k. Is this a transfer of equity? Is land tax payable?
  • My ex are looking to get a conveyancer lined up for a remortgage 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 appoint a conveyancing solicitor local to us?
  • I am led to believe we would need at least AP1 and TR1. Is this true?

Sample of information requested in a lawyer form concerning a Paratus Transfer of Equity

Has consent been obtained from Paratus to the proposed 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?

Please let us know of you wish us to prepare Declaration of Trust. If so are you willing to pay for the additional fee (beyond the Transfer of Equity fee)?

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

Please provide the details of anyone who jointly owns the property with you?

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

Important warnings to consider in further 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 have a requirement for notices to be served and that you obtain the consent of the freeholder. If such conditions are not complied with you may be in violation of the lease. This could potentially result in 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 is dependent on the valuation of the property at finalisation of the transfer of equity transaction.
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 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 contained within 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