Sample questions relating to Paratus transfer of equity

• What are the average solicitors costs are for a transfer of equity? I need to transfer equity and refinance - moving over to Paratus - and have been quoted Three Hundred pounds plus VAT by Paratus's approved lawyer, Have I been over quoted?
• I currently have a joint Paratus mortgage with my brother and am looking into the possibility of him taking on the whole mortgage and removing myself from it, to enable me to purchase a property with my partner. The outstanding mortgage is about 175k, and the property value is about 450k. Is this a transfer of equity? Is land tax payable?
• Me and a friend got a joint mortgage with Paratus on a house about a year ago. I am now looking to get a apartment on my own and my friend would like to buy me out. Once we have agreed a figure where do we go? Would there be any potential concerns with Paratus with him being on the hook for the total loan rather than only half of it?
• What is the process for adding or subtracting names (transfer of equity) to or from my Paratus mortgage account?
• After 2 a couple of years separated I have opted to relinquish up my share of our house to my husband who is refinancing with Paratus. Can a transfer of equity be done within four weeks?
• My decree absolute has gone through as is the consent order. Now I must sort out the transfer of equity at the HMLR and the Paratus mortgage. I have asked Paratus for the transfer of equity application. What do I do now?
• What if my application doesn't meet Paratus lending criteria for a transfer of equity?

Sample of questions in a conveyancer questionnaire relating to Paratus Transfer of Equity

Important warnings to consider in supplemental 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 properties

Should the tenure of your property be leasehold, provisions in the lease may require that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation 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 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 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 conveyancer 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.