Sample questions relating to Virgin transfer of equity

• Do I need legal advice when doing a transfer of equity where the home loan is to remain with Virgin?
• I am transferring my share of a house in Hendon to the other co-owners husband, they are reapplying to Virgin. We are debating as to who must pay the costs of the transfer of equity. Is this usually shared or is one of us obliged to cover the fees for?
• My partner and myself have equal shares in a investment property. I am a higher rate tax payer. Ideally I wish to complete a transfer of equity into her name with a view to mitigate tax on the letting income. If Virgin are fine with this the legal fees are not prohibitive. However what happens when we dispose of the property? Would my GGT relief be lost.
• My Virgin mortgage is in joint names with ex, he has agreed to come off the deeds and put the house in my name alone. Virgin have consented to the transfer of equity to my individual name. Do Virgin get in touch with my company to verify my salary?
• I intend to remortgage my flat in Dunnington switching from Coventry BS to Virgin. The home is currently in joint names but wish for it to be in my sole name as and when I remortgage. My husband is OK with this and is happy to transfer equity but neither of us want to incur lawyer charges.
• I got divorced in 2010. Foolishly I never dealt with the change the ownership from the current 'joint' status to my sole name. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Virgin is willing to transfer the full equity in my name (financial checks done). Does she need a conveyancer?
• I jointly own a flat in Rye , with a Virgin loan 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 completed by a conveyancing solicitor for Virgin (apparently). Is it possible for us to do the Land Registry formalities?

Sample of information requested in a conveyancing solicitor form concerning a Virgin Transfer of Equity

General Advice to read in further to the above Virgin transfer of equity Questions and Answers :

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 properties

If your property is leasehold, the lease may have a requirement for notices to be served and that you obtain the consent of the landlord. If such conditions are not complied with you may be in breach of your covenants under 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 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 market value of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Virgin Mortgage

When it comes to preparing the the Land Registry documents your conveyancer 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 lawyer 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.