Transfer of Equity Conveyancing - Paragon Mortgages Ltd Panel Requirements
The content on this web-page was fashioned to help E&W conveyancing practitioners conducting Transfer of Equity conveyancing who are on the Paragon Mortgages Ltd conveyancing panel. It is not intended as an alternative to reviewing the CML handbook requirements for Paragon Mortgages Ltd
As a conveyancer you must approve the transfer (which should be in the Land Registry's standard form) and, if Paragon Mortgages Ltd require, the deed of covenant on their behalf. See below to see if Paragon Mortgages Ltd have standard forms of transfer and deed of covenant
Does Paragon Mortgages Ltd have a standard form of transfer of equity /deed of covenant?
When drafting or approving a transfer of equity, you should bear in mind that:
- although the transfer should state that it is subject to the mortgage (identified by date and parties), it need give no details of the terms of the mortgage;
- the transfer need not state the amount of the mortgage debt. If it does, the figure should include both principal and interest at the date of completion, which you must check (see below for where to obtain this);
- there should be no statement that all interest has been paid to date.
If different from 1.11 of Paragon Mortgages Ltd UK Finance Lenders’ Handbook Part 2, contact point for finding out the debt amount:
First Mortgage Customer Services, Paragon Buy to Let Mortgages, 51 Homer Road, Solihull, West Midlands B91 3QJ, telephone number 0345 849 4060, fax number 0345 849 4061 MDX 14031 Solihull 2.
As a conveyancer on the Paragon Mortgages Ltd panel you must ensure that every person who will be a borrower after the transfer covenants with Paragon Mortgages Ltd to pay the money secured by the mortgage, except in the case of:
- an original party to the mortgage (unless the mortgage conditions are being varied); or
- a person who has previously covenanted to that effect.
Any such covenant will either be in the transfer or in a separate deed of covenant. In a transfer, the wording of the covenant should be as follows, or as close as circumstances permit: "The new borrower agrees to pay the lender all the money due under the mortgage and will keep to all the terms of the mortgage." If it is in the transfer, you must place a certified copy of the transfer with the deeds (unless Paragon Mortgages Ltd tell you not to in their CML part 2 requirements, please see below).
Does Paragon Mortgages Ltd need to be sent the transfer of equity?
Yes, certified copy to be included with deeds.
If Paragon Mortgages Ltd have agreed to release a borrower or a guarantor and their standard transfer form (if any) includes no appropriate clause, you must add a simple form of release. The release clause should be as follows, or as close as circumstances permit: "The lender releases ... from his/her/their obligations under the mortgage." You should check whether a guarantor who is to be released was a party to the mortgage or to a separate guarantee.
You must obtain the consent of every guarantor of whom you are aware to the release of a borrower or, as the case may be, any other guarantor.
You must only submit the transfer to Paragon Mortgages Ltd for execution if it releases a party. All other parties must execute the transfer before it is sent to Paragon Mortgages Ltd . See Paragon Mortgages Ltd part 2 requirements for where the transfer should be sent for sealing. The UK Finance Lenders’ Handbook Part 2 also gives Paragon Mortgages Ltd approved form of attestation clause - see below:
If different from 1.11, Paragon Mortgages Ltd contact point for obtaining execution of transfer equity:
What form of attestation clause does Paragon Mortgages Ltd use?
Executed as a deed by Paragon Finance PLC acting by two authorised signatories as attorney for [insert name of lender]