Questions and answers: NRAM Ltd transfer of equity

• My friend and I got a joint mortgage with NRAM Ltd on a property in 2013. I am now looking to get a flat by myself and my friend would like to buy me out. Assuming we can agree a figure what happens next? Would there be any potential concerns with NRAM Ltd with him being responsible for the total mortgage rather than only part of it?
• I am transferring my equity in flat in Warwick to the other co-owners husband, they are reapplying to NRAM Ltd. We are in heated discussion as to who must pay the costs of the transfer of equity. Is this normally shared or is one party obliged to cover the charges for?
• I am refinancing my property in Dunnington does my lawyer have to be on the NRAM Ltd Conveyancing panel. The conveyancing also involves a transfer of equity.
• I understand we would need at least AP1 and Transfer Deed. Is this true?
• My former wife are looking to get a lawyer in place for a new mortgage with NRAM Ltd. Transfer of Equity conveyancing is also necessaryI have used the different comparison based tools and the results are from all over UK. Is it important to have a lawyer local to us?
• My NRAM Ltd mortgage we jointly entered into with ex, who is agreeable to be removed and put the house in my name alone. NRAM Ltd have consented to the transfer of equity to me solely. Will NRAM Ltd call my company to verify my salary?
• I purchased a house with my cousin in 2010 Since buying the property, we have both got married. We are now intending to do a transfer of equity so my name is removed the NRAM Ltd mortgage. There is a 40k difference between the value the mortgage company hold and what the property would sell for currently. Can you offer any advice?

Examples of questions in a conveyancer form relating to NRAM Ltd Transfer of Equity

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

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 NRAM Ltd conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold premises

Should the tenure of your property be leasehold, the lease may require that you obtain the consent of the landlord. If such terms are not adhered to 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 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 market value 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 conveyancer 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 conveyancer 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 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.