Sample questions relating to NRAM Ltd transfer of equity
- Me and a friend got a joint mortgage with NRAM Ltd on a flat about a year ago. I am now looking to get a flat on my own and my friend would like to buy me out. Assuming we can agree a price what happens next? Is there likely to be any concerns with NRAM Ltd with him being on the hook for the total mortgage as opposed to only half of it?
- What is the process for adding or subtracting names (transfer of equity) to or from my NRAM Ltd mortgage account?
- My former husband are planning to get a conveyancer in place for a remortgage with NRAM Ltd. Transfer of Equity conveyancing is also necessaryI have used the different rating based tools and the results are from all over England and Wales. How necessary is it to have a lawyer local to us?
- Is it possible to apply to request a further advance from NRAM Ltd as part of a Transfer of Equity?
- Three years ago I bought a property without my fiance’s name on the title documents. My conveyancing solicitor advised it is because she is not in the loan offer with NRAM Ltd. I'm wondering is there any way that I can add her name on the documents at HM Land Registry?
- I am in the process of removing a name from a joint mortgage and the NRAM Ltd need me to use a conveyancer to carry out the legalities. Can you recommend a reasonably priced Crabtree
conveyancing solicitor to deal with the transfer of equity? They need to be on the NRAM Ltd conveyancing panel.
- My NRAM Ltd mortgage is in joint names with ex, he is agreeable to come off the deeds and put the house in my name alone. NRAM Ltd have consented to the transfer of equity to my individual name. Do NRAM Ltd call my employer to check my salary?
Information that may be required from your conveyancing solicitor may ask in relation to your NRAM Ltd Transfer of Equity
Has consent been obtained from NRAM Ltd to the proposed transfer of equity?
Please list all persons who occupy the property, their respective ages and relationships to you.
Please give the name(s) and addresse(s) of anyone to be added to the title deeds?
Please confirm whether you are receiving any payment as part of the Transfer or Equity and from whom and give details of the amount?
We need you to supply the National Insurance Number(s) of all the new owners (required for completion of the SDLT Form)
Who will be responsible for the costs of the Transfer of Equity?
Information to consider in further 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
If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not complied with you may be in violation of 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 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 varies based on the market value of the property at finalisation 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 lawyer 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 conveyancing solicitor should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.
Information provided 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.
