Common questions relating to Virgin transfer of equity
- Will I have to pay any fees for a Transfer of Equity where the current mortgage is with Virgin?
- Is it possible to apply to borrow more money from Virgin as part of a Transfer of Equity?
- Me and my former wife and I are in the market for an affordable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Virgin. I want to avoid being ripped off and there are many conveyancing practices who do transfer of equity conveyancing out there...how do I know which is best appoint?
- I already have a home loan with Virgin and am keeping my existing mortgaging but wish to have it in my sole name so my former wife will be removed from the deeds. How long do Virgin take to deal with the application?
- My fiance and I equally own a buy to let. I am a top rate tax payer. Preferably I wish to complete a transfer of equity into her name to reduce our tax on rental income. Assuming Virgin are content with this the legal fees are not prohibitive. However what happens when we sell? Would my GGT relief be lost.
- I am disposing of my equity in house in Warwick to the other co-owners fiance, they are sticking with Virgin as the the existing lender. We are in heated discussion as to who should cover the charges for the transfer of equity. Should this be shared or is one of us liable for the fees for?
- I own a apartment in Winchelsea
, with a Virgin mortgage with my former husband. He and his fiance are going to acquire my share. We had approval from Virgin to remove my name with hers. The transfer of equity needs to be completed by a conveyancing solicitor for Virgin (supposedly). Is it possible for us to deal with the Land Registry change?
Examples of information requested in a conveyancer questionnaire relating to Virgin Transfer of Equity
If are going to hold the property as beneficial Tenants in Common in unequal shares, what is the split to be. For e.g. 50-50, or 60-40?
Please provide the name(s) and addresse(s) of anyone to be added to the property title?
Please provide the name(s) and addresse(s) of anyone to be removed from the property title?
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)
Who will be responsible for the costs of the Transfer of Equity?
Has one of the registered proprietors died? If so please forward us with a copy of the Death Certificate, Probate and a copy of the Will.
Important warnings to consider in in addition to the above Virgin transfer of equity Advice :
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 obtain the consent of the landlord. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.
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 situations, 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 varies based on the valuation of the property at finalisation of the transfer of equity transaction.
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.
Content 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.