A few years ago my daughter and her boyfriend wanted to move in together but rent prices (even at that time) were prohibitive. Rather than have them waste money on rent, and as my daughter had inherited some money I offered to buy a house with her and basically they could pay the mortgage.
Recently, they decided that they wanted to buy me out and we are all agreed on price / her equity and so on. They have approached the same bank and were initially this should be no problem. I thought that th process would be that we would have 2 sets of solicitors a) one for myself and my daughter and b) one for herself and her boyfriend.
However, recently she was told:
"In essence you can’t sell a home that’s already in your name and buy it back in your name again. In order to remove your Dad from the Mortgage we would do a product amendment form and put the Mortgage in yourself and your boyfriends name. We would then do an Equity release Mortgage in order to raise the funds to pay your Dad the agreed amount in order for him to remove his interest off the property." - sounds fine to me
and subsequently....
"You wouldn’t be ‘buying’ it as such as you already own it. If your Dads share is €xxxk, then that would be the proposed equity release in order to remove your Dad from the property. Any right of future residence by your dad would also need to be waived." - no problem with this
"You will definitely need a solicitor but you also need to be aware of any Capital Acquisitions Tax that may become liable on your boyfriends side as he in effect is receiving an asset, i.e the house." I don't understand this because with myself taking my share from the property they will be increasing the existing mortgage from say 35% LTV to 75% LTV which they will be jointly responsible for so I am not giving her boyfriend anything.
I'm kind of at a loss where to go with this and between our 3 way discussions and then her comms with the bank it seems to be just dragging on interminably so I would like to trying to get the transaction concluded as soon as possible.
Any advice would be much appreciated,
Roy
Recently, they decided that they wanted to buy me out and we are all agreed on price / her equity and so on. They have approached the same bank and were initially this should be no problem. I thought that th process would be that we would have 2 sets of solicitors a) one for myself and my daughter and b) one for herself and her boyfriend.
However, recently she was told:
"In essence you can’t sell a home that’s already in your name and buy it back in your name again. In order to remove your Dad from the Mortgage we would do a product amendment form and put the Mortgage in yourself and your boyfriends name. We would then do an Equity release Mortgage in order to raise the funds to pay your Dad the agreed amount in order for him to remove his interest off the property." - sounds fine to me
and subsequently....
"You wouldn’t be ‘buying’ it as such as you already own it. If your Dads share is €xxxk, then that would be the proposed equity release in order to remove your Dad from the property. Any right of future residence by your dad would also need to be waived." - no problem with this
"You will definitely need a solicitor but you also need to be aware of any Capital Acquisitions Tax that may become liable on your boyfriends side as he in effect is receiving an asset, i.e the house." I don't understand this because with myself taking my share from the property they will be increasing the existing mortgage from say 35% LTV to 75% LTV which they will be jointly responsible for so I am not giving her boyfriend anything.
I'm kind of at a loss where to go with this and between our 3 way discussions and then her comms with the bank it seems to be just dragging on interminably so I would like to trying to get the transaction concluded as soon as possible.
Any advice would be much appreciated,
Roy