Recently asked questions relating to Virgin transfer of equity
- As things stand I have a joint Virgin mortgage with my step-brother and am looking into the possibility of him assuming responsibility for the whole mortgage and removing myself from it, to enable me to purchase a place with my fiance. The remaining mortgage is in the region 175k, and the property value is approx 500k. Is this a transfer of equity? Is stamp duty involved?
- I intend to refinance my flat in Winchelsea
moving from RBS to Virgin. The flat is currently in joint names but intend for it to be in my name only when I remortgage. My former partner is OK with this and is willing to sign a form but neither of us want to incur conveyancing solicitor charges.
- My partner and I co-own a property in Wakefield
. Mortgage is with Virgin. I wish to transfer full ownership to him with no payment of money but without using a conveyancer. Do you think this should be simple?
- Having been four years separated I have made the decision to relinquish up my interest in the apartment to my husband who is refinancing with Virgin. Could this transfer of equity be done inside four weeks?
- Is it possible to apply to borrow a further advance from Virgin as part of a Transfer of Equity?
- My wife and myself jointly own a buy to let. I am a higher rate tax payer. Preferably I would like to complete a transfer of equity to her sole name in order mitigate tax on the letting income. Assuming Virgin are happy with this the legal fees are inexpensive. However what happens when we dispose of the property? As I would no longer be on the title documents am I giving up my CGT relief.
- I am planning on removing a name from a joint mortgage and the Virgin require me to use a conveyancer to carry out the paperwork. Can you recommend a reasonably priced Rye
conveyancer to deal with the transfer of equity? They need to be on the Virgin conveyancing panel.
Questions that your conveyancer may ask in relation to your Virgin Transfer of Equity
Is the transfer of equity subject to a court order? If yes please supply a copy
Has consent been obtained from Virgin to the proposed transfer of equity?
Who will be responsible for the costs of the Transfer of Equity?
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 provide the National Insurance Number(s) of all the new owners (required for submission of the Stamp Duty Land Tax Form)
Please give the name(s) and addresse(s) of anyone to be added to the property title?
Important warnings to consider in conjunction with the above Virgin transfer of equity Questions and Answers :
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 Virgin conveyancing panel and accountant before transferring equity.
Transfer of Equity Conveyancing for Leasehold premises
If your property is leasehold, the lease may require that you have a license to do so from the landlord. If such conditions are not complied with you may be in violation of the lease. This could potentially result in the freeholder taking enforcement action against you.
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 conveyancing solicitor 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 is dependent on the market value of the property at the time of completion of the transfer of equity conveyancing.
If you do not keep up the payments on your mortgage with Virgin your property may be repossessed.
Preparing the Transfer of Equity with a Virgin 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 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 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.