Frequently asked questions relating to NRAM Ltd transfer of equity

• Me and my partner jointly own a flat in Ampthill . Home loan is with NRAM Ltd. I wish to transfer full ownership to him with no payment of money but without using a lawyer. Is this likely to be easy to so?
• My divorce is through as is the consent order. Now I must deal with the transfer of equity at the land registry and the NRAM Ltd home loan. I have contacted NRAM Ltd for the transfer of equity forms. What do I do now?
• Can I transfer the equity held in my property with my NRAM Ltd mortgage?
• Me and a friend got a joint mortgage with NRAM Ltd on a house about a year ago. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. On the basis that we can settle on a figure what happens next? Would there be any potential problem with NRAM Ltd with him being on the hook for the total mortgage as opposed to only half of it?
• My former wife are seeking to get a lawyer in place for a remortgage with NRAM Ltd. Transfer of Equity conveyancing is also requiredI have used the different rating based tools and the results are from all over England and Wales. Do we need to appoint a conveyancer local to us?
• My NRAM Ltd home loan we jointly entered into with ex, who is agreeable to come off the mortgage and put the house in my name alone. NRAM Ltd have consented to the transfer of equity to my individual name. Do NRAM Ltd get in touch with my employer to confirm my salary?
• NRAM Ltd have today agreed I can take over the mortgage on my home. I previously applied for a transfer of equity but presumably there is a transfer of ownership at HMLR as well?

Information that may be required from your conveyancer could ask in relation to your NRAM Ltd Transfer of Equity

Caveats to be read in conjunction with the above NRAM Ltd transfer of equity information :

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 titles

If your property is leasehold, provisions in the lease may require that you have a license to do so from the landlord. If such restrictions 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 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 lawyer 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 market value of the property at finalisation of the transfer of equity conveyancing.

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.

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.