Examples of recent questions relating to Paratus transfer of equity

• I got my Decree Absolute in 2011. I simply never dealt with the change the ownership from the current 'joint' status to just in my name. I now plan to deal with it and there are no objections. Transfer-of-equity is needed. Paratus is happy to transfer the full equity in my name (affordability checks done). Does she need a lawyer?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Paratus?
• My partner and I co-own a house in Rye . Mortgage is with Paratus. I would like to transfer full ownership to him with no exchange of money but without using a conveyancing solicitor. Do you think this should be simple?
• At what stage do I incur stamp duty chargeable for the transfer of equity in my property in my name alone which is taking place simultaneously with a refinancing with Paratus?
• I jointly own a house in Dunnington , with a Paratus loan with my ex partner. He and his new partner are going to buy me out. We had approval from Paratus to replace my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Paratus (apparently). In order to save fees can I do the Land Registry formalities?
• My decree absolute has gone through as is the consent order. Now I must sort out the transfer of equity at the land registry and the Paratus home loan. I have contacted Paratus for the transfer of equity application. What do I do now?
• I currently have a joint Paratus mortgage with my brother and am investigating the possibility of him taking on the outstanding mortgage and removing myself from it, so as to enable me to buy a property with my fiance. The outstanding mortgage is in the region 200k, and the property value is in the region 500k. Is this a transfer of equity? Is land tax payable?

Examples of information requested in a lawyer questionnaire concerning a Paratus Transfer of Equity

Information 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 titles

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such terms are not adhered to 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 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 is dependent on the market value of the property at finalisation of the transfer of equity conveyancing.

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.