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Top seven questions relating to NRAM Ltd transfer of equity

  • Given that we have been 3 years apart I have opted to give up my interest in our former home to my husband who is re-mortgaging with NRAM Ltd. Could this transfer of equity be completed inside one month?
  • Law month I split up with my partner of twenty years. I'm now living with my mum and dad and she wishes to stay in the apartment and buy me out. What portion am I entitled to. Is it 50% of the equity after paying off the mortgage with NRAM Ltd? I assume proper valuations are required but I would like to be sure that I'm getting the best deal
  • My current home loan is with NRAM Ltd. Can I transfer equity to someone less than 18 years old?
  • My friend and I got a joint mortgage with NRAM Ltd on a house in 2013. I am now looking to get a house by myself and my friend would like to buy me out. On the basis that we can settle on an amount where do we go? Would there be any potential concerns with NRAM Ltd with him being solely liable for the total mortgage rather than only half of it?
  • As things stand I have a joint NRAM Ltd mortgage with my step-brother and am looking into the feasibility of him taking on the outstanding mortgage and extracting myself from it, so as to enable me to purchase somewhere with my soon-to-be-wife. The outstanding mortgage is about 200k, and the property value is in the region 450k. Is this a transfer of equity? Is land tax due?
  • I bought a flat with a friend in 2009 Since then, we have both got married. We are now seeking to do a transfer of equity so my name comes off the NRAM Ltd mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
  • Me and my partner co-own a house in Romsey . Home loan is with NRAM Ltd. I want to transfer full ownership to him with no passing of money but without using a conveyancer. Do you think this should be straightforward?

Questions that your conveyancer may ask in relation to your NRAM Ltd Transfer of Equity

Have you approached NRAM Ltd to obtain consent to the Transfer of Equity

Who will be responsible for the costs of the Transfer of Equity?

Please let us know of you wish us to draw up a Declaration of Trust. If so are you happy to pay for the further fee (beyond the Transfer of Equity fee)?

Please provide the details of anyone to be extracted from the property title?

Please give the details of anyone to be added to the title deeds?

Can you provide the name(s) and addresse(s) of anyone who jointly owns the property with you?

Information to consider in in addition to the above NRAM Ltd transfer of equity Advice :

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 titles

Should the tenure of your property be leasehold, provisions in the lease may require that you obtain the consent of the freeholder. If such terms are not adhered to you may be in breach of the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made pursuant to an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, 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 varies based on the valuation of the property at the conclusion of the transfer of equity conveyancing.
Your property may be repossessed if you do not keep up repayments on your mortgage with NRAM Ltd.

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 lawyer 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.


Frequently asked questions relating to NRAM Ltd transfer of equity