Frequently asked questions relating to NRAM Ltd transfer of equity

• I am disposing of my share of a house in Warwick to the other co-owners husband, they are sticking with NRAM Ltd as the the existing lender. We are haggling as to who must cover the costs of the transfer of equity. Is this normally split or is one of us obliged to cover the fees for?
• I am looking for a conveyancer to deal with my transfer of equity. NRAM Ltd are dealing with the refinancing. I thought of asking my financial adviser. I understand he will likely receive a kickback for suggesting someone, but also of benefit will be that he knows the conveyancer, has dealt with them before. Is my logic misguided?
• My mortgage broker has suggested using their conveyancer for the Transfer of Equity plus remortgage with NRAM Ltd - Surely it’s better to just use them?
• I intend to remortgage my maisonette in Wakefield switching from Birmingham Midshires to NRAM Ltd. The maisonette is jointly owned but intend for it to be in my sole name when I remortgage. My wife is OK with this and is willing to transfer equity but neither of us want to get a second conveyancing solicitor involved.
• Me and a friend got a joint mortgage with NRAM Ltd on a apartment about a year ago. I am now thinking of purchasing a apartment by myself and my friend would like to buy me out. On the basis that we can settle on a figure what are the next steps? Is there likely to be any concerns with NRAM Ltd with him being on the hook for the total loan as opposed to only half of it?
• Is it possible to apply to borrow more money from NRAM Ltd as part of a Transfer of Equity?
• As things stand I have a joint NRAM Ltd mortgage with my cousin and am looking into the feasibility of him assuming responsibility for the outstanding mortgage and removing myself from it, so as to enable me to buy somewhere with my fiance. The remaining mortgage is about 175k, and the property value is approx 450k. Is this a transfer of equity? Is land tax due?

Examples of information requested in a lawyer questionnaire relating to NRAM Ltd Transfer of Equity

General Advice to read in conjunction with the above NRAM Ltd transfer of equity Info :

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 NRAM Ltd conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. 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 as a result of 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 NRAM Ltd 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 NRAM Ltd 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 the conclusion of the transfer of equity transaction.

Preparing the Transfer of Equity with a NRAM Ltd 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 NRAM Ltd 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.