Questions and answers: NRAM Ltd transfer of equity

• Have recently split up with my partner of thirty years. I'm now back with my mum and dad and she wishes to remain in the property and buy me out. What portion am I entitled to. Is it 50% of the equity after redeeming the NRAM Ltd home loan? I assume proper valuations are required but I really need to be confident that I'm getting I am not being taken advantage of
• Me and a friend got a joint mortgage with NRAM Ltd on a property a couple of years 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 price where do we go? Would there be any potential issue with NRAM Ltd with him being responsible for the total mortgage rather than only part of it?
• I am considering mortgaging my property in Timperley does my lawyer have to be on the NRAM Ltd Solicitor panel. The conveyancing also involves a transfer of equity.
• I am under the impression we would need at least AP1 and Transfer Deed. Is this true?
• My mortgage broker has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with NRAM Ltd - Surely it’s advisable to just use them?
• I am looking for a conveyancing solicitor to deal with my transfer of equity. NRAM Ltd have been approached for a remortgage. I thought of asking my financial adviser. I am lead to believe he may get a referral fee for suggesting someone, but also of benefit will be that he knows the conveyancing solicitor, has dealt with them before. Any flaws you see in this way of thinking?
• I purchased a property with my cousin in 2008 Since purchasing the property, we have both got married. We are now seeking to do a transfer of equity so my name is removed the NRAM Ltd mortgage. There is a 40k difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?

Examples of information requested in a conveyancer questionnaire concerning a NRAM Ltd Transfer of Equity

Caveats to be read in in addition to the above NRAM Ltd 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 NRAM Ltd conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

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 landlord. 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 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 conveyancing solicitor 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 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.