Recently asked questions relating to Paratus transfer of equity

• Is there such a thing a transfer of equity stamp duty calculator?
• Law month I separated from my wife of 18 years. I'm now living with my parents again and she wants to stay in the flat and pay me off. What percentage am I entitled to. Is it 50% of the equity after paying off the mortgage with Paratus? I assume proper valuations are necessary but I would like ensure that I'm getting what I am entitled to
• I intend to refinance my maisonette in Timperley moving from Leeds Building Society to Paratus. The flat is jointly owned but propose for it to be in my name only once I switch. My husband has verbally consented to this and is happy to sign a form but neither of us want to incur conveyancer fees.
• Can I apply to request a further advance from Paratus as part of a Transfer of Equity?
• Am I best advised stop the direct debit for my mortgage with Paratus as soon as a date for my remortgage and transfer of equity has been set?
• As things stand I have a joint Paratus mortgage with my step-brother and am investigating the option of him assuming responsibility for the outstanding mortgage and extracting myself from it, so as to enable me to purchase a place with my partner. The remaining mortgage is in the region 300k, and the property value is about 600k. Is this a transfer of equity? Is land tax payable?
• Paratus have today agreed I can take over the home loan on the flat. I have applied for a transfer of equity but is this a transfer of ownership of the title deeds on top?

Information that may be required from your conveyancing solicitor could ask regarding your Paratus Transfer of Equity

Caveats to be read in supplemental the above Paratus transfer of equity Questions and Answers :

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 conditions are not complied with you may be in violation of your covenants under the lease. This could trigger 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 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 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 varies based on the valuation 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 lawyer 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.

Content 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.