Top seven questions relating to Virgin transfer of equity

• What is the process for adding or subtracting names (transfer of equity) to or from my Virgin mortgage account?
• My former husband are planning to get a conveyancer in place for a refinance with Virgin. Transfer of Equity conveyancing is also neededI have used the different comparison based websites and the results are from all over the country. How necessary is it to instruct a conveyancer local to us?
• My Virgin mortgage is in joint names with ex, who has agreed to come off the mortgage and let me have the property. Virgin will permit the transfer of equity to me solely. Do Virgin get in touch with my company to verify my salary?
• Our financial adviser has suggested using their conveyancing solicitor for our Transfer of Equity plus remortgage with Virgin - won’t it be advisable to just use them?
• I intend to remortgage my flat in Winchelsea changing from Chelsea BS to Virgin. The home is jointly owned but I would like it to be in my name only as and when I switch. My former partner has agreed to this and is happy to transfer equity but neither of us want to get a second conveyancer involved.
• I jointly own a house in Friern Barnet , with a Virgin mortgage with my ex partner. He and his fiance are going to buy me out. We had approval from Virgin to remove my name with hers. The transfer of equity has to be done by a conveyancing solicitor for Virgin (supposedly). In order to save fees can I deal with the Land Registry change?
• Me and my partner jointly own a house in Dunnington . Home loan is with Virgin. I would like to transfer full ownership to him with no passing of money but without using a lawyer. Do you think this should be easy to so?

Examples of questions in a lawyer form relating to Virgin Transfer of Equity

Caveats to be read in further to the above Virgin transfer of equity information :

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 Virgin 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 have a license to do so from the freeholder. If such conditions are not strictly observed you may be in violation of the lease. This could potentially result in 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 Virgin 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 Virgin 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 time of completion of the transfer of equity transaction.

Preparing the Transfer of Equity with a Virgin 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 Virgin 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 contained within 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.