Virgin transfer of equity example support desk enquires

• I got divorced two years ago. Foolishly I never dealt with the change the ownership from the current 'joint' status to my name alone. I am ready to do that and so is she. Transfer-of-equity is presumably the way forward. Virgin is happy to transfer the full equity in my name (affordability checks done). Does my ex need a conveyancer?
• My mum died last May leaving a unencumbered property to me and my half brother equally. He has always lived in the house, there was a clause in the will specifying that the premisescould not be sold for three years following her passing so he could reside there for a specified time frame. He now says he would like to remain in the house beyond the specified period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the conventional way to acquire my equity?
• Can I apply to request a further advance from Virgin as part of a Transfer of Equity?
• I jointly own a flat in Winchelsea , with a Virgin mortgage with my former partner. He and his new partner are going to acquire my share. We had the go ahead from Virgin to replace my name with hers. The transfer of equity needs to be completed by a lawyer for Virgin (apparently). Can we do the Land Registry formalities?
• How much the typical legal costs are for a transfer of equity? I'm in the process of remortgaging - moving over to Virgin - and have been quoted Four Hundred pounds including VAT by Virgin's appointed conveyancing solicitor, Is this a reasonable price?
• I plan to remortgage my home in Heathfield changing from HSBC to Virgin. The apartment is currently in joint names but propose for it to be in my sole name when I remortgage. My former partner has verbally consented to this and is happy to sign a form but neither of us want to incur lawyer fees.
• I am searching for a dependable conveyancing solicitor to help me sell in a transfer of equity and remortgage with Virgin. I I am concerned about being overcharged and there's various conveyancing firms who do transfer of equity conveyancing to pick from...who do I opt for?

Examples of questions in a conveyancer questionnaire concerning a Virgin Transfer of Equity

Caveats to be read in supplemental 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 titles

If your property is leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the landlord. If such conditions 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 pursuant to 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 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 varies based on the market value 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 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.

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.