Virgin transfer of equity example support desk enquires

• I acquired a property with a friend six years ago Since then, we have both got married. We are now seeking to do a transfer of equity so my name is taken off the Virgin mortgage. There is a meaningful difference between the 'rightmove estimate' and what the property would sell for currently. Can you offer any advice?
• I already have a home loan with Virgin and am retaining my current mortgaging but applying to have it in my sole name so my former partner won't be on it any longer. How long do Virgin take to deal with the application?
• How and when do I cover the costs of the Stamp Duty Land Tax due for the transfer of equity in my property in my name alone which is happening at the same time as a refinancing via Virgin?
• I got my Decree Absolute three years ago. Foolishly I never got around to change the ownership from both our names to my name alone. I now plan to deal with it and there are no objections. Transfer-of-equity is presumably the way forward. Virgin is content to transfer the property and loan in my name (financial checks done). Does she need a solicitor?
• Law week I split up with my ex of thirty years. I'm now back with my parents again and she wants to stay in the apartment and buy me out. What portion do I get. Is it half of the equity after redeeming the mortgage with Virgin? I assume proper valuations are required but I really need ensure that I'm getting what I am entitled to
• Me and a friend got a joint mortgage with Virgin on a flat in 2013. I am now looking to get a apartment by myself and my friend would like to buy me out. Assuming we can agree an amount what are the next steps? Would there be any potential concerns with Virgin with him being responsible for the total loan as opposed to only part of it?
• What legal advice do I need when doing a transfer of equity where the mortgage is to remain with Virgin?

Questions that your lawyer could ask regarding your Virgin Transfer of Equity

Important warnings to consider in in addition to 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 premises

If your property is leasehold, provisions in the lease may have a requirement for notices to be served and 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 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 lawyer 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 valuation of the property at finalisation 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 lawyer 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. Lender Panel.com Ltd will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.