Questions and answers: NRAM Ltd transfer of equity

• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with NRAM Ltd?
• My decree absolute is through as is the consent order. Now I must deal with the transfer of equity on title deeds and the NRAM Ltd mortgage. I have contacted NRAM Ltd for the transfer of equity forms. What are my next steps?
• Am I best advised stop the direct debit for my mortgage with NRAM Ltd as soon as a date for my remortgage and transfer of equity has been set?
• What do I need to do when it comes adding or subtracting names (transfer of equity) to or from my NRAM Ltd mortgage account?
• I am disposing of my share of a flat in Woodside to the other co-owners fiance, they are sticking with NRAM Ltd as the the existing lender. We are in heated discussion as to who must pay the costs of the transfer of equity. Is this usually split or is one party liable for the legal bill?
• I plan to remortgage my home in Wakefield switching from Virgin Money to NRAM Ltd. The flat is currently in joint names but I would like it to be in my name only when I transfer. My husband is OK with this and is happy to transfer equity but neither of us want to incur conveyancing solicitor charges.
• I co-own a apartment in Crabtree , with a NRAM Ltd loan with my ex husband. He and his fiance are going to buy me out. We had consent from NRAM Ltd to substitute my name with hers. The transfer of equity has to be completed by a conveyancing solicitor for NRAM Ltd (apparently). Can we do the Land Registry change?

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.