Frequently asked questions relating to Virgin transfer of equity
- Will I have to pay any charges for a Transfer of Equity where the current mortgage is with Virgin?
- When it comes to transfer of equity conveyancing involving a remortgage with Virgin should I be paying VAT on the following: (1) Land Registry fee on the transfer of equity (2) Pre - completion search fee (3) SDLT E submission on the transfer (4) Bank TT fee
- My partner and I have equal shares in a buy to let. I am a higher rate tax payer. Ideally I would like to do a transfer of equity to her sole name to mitigate tax on rental income. Assuming Virgin are content with this the legal fees are not high. What are the implications when we dispose of the property? Would my GGT relief be lost.
- Is it possible to transfer the equity held in my property with my Virgin home loan?
- My decree absolute has gone through as is the consent order. Now I need to deal with the transfer of equity on title deeds and the Virgin home loan. I have contacted Virgin for the transfer of equity forms. What do I do now?
- My partner and I jointly own a property in Miles Platting
. Mortgage is with Virgin. I want to transfer full ownership to him with no payment of money but without using a lawyer. Is this likely to be straightforward?
- My mum passed away half a year ago leaving a unencumbered bungalow to me and my brother in equal shared. Having continues to reside at the premises, there was a clause in the will saying the housecould not be sold for three years after her passing so he could continue to live there for a while. He now wishes to remain in the property beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we should get a valuation then he'd get a mortgage in the conventional way to purchase my equity?
Examples of information requested in a lawyer form concerning a Virgin Transfer of Equity
Please list all persons who occupy the property, their respective ages and relationships to you.
Where you are adding a person on to the property how do you wish to hold the property? Please provide your instructions by completing and returning a“Joint Ownership Declaration” Questionnaire.
Please confirm the person to be removed from the title deeds will not reside at the property after the transfer of equity has been completed?
Has one of the registered proprietors passed away? If so please provide us with a copy of the Death Certificate, Probate and a copy of the Will.
Please provide a copy of your National Insurance Number?
Please give the details of anyone to be added to the property title?
Information to consider in supplemental the above Virgin transfer of equity Info :
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 properties
If your property is leasehold, the lease may require that you obtain the consent of the landlord. If such restrictions are not strictly observed 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 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 conveyancer 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.