Will I be a First Time Buyer after my divorce?

R

rebelhead

Registered User
Messages
10
I am currently going through the process of divorce and contemplating transferring title of the house to my ex so that I can eventually buy a place of my own.
The query I have, could I be classed as a first time buyer as after a bit of googling I would meet all the criteria below.

"The legislation further provides that a spouse to a marriage the subject of a decree of judicial separation, a deed of separation, a deed of divorce or a decree of nullity in the case of the first acquisition of a house by the spouse following the separation or divorce will be considered a First-Time Buyer provided that the spouse had in relation to the former marital home;"

  • Left that home;
  • Not retained an interest in that home;
  • And whose separated former spouse continues to occupy that home, which home was occupied by both spouses prior to the separation or dissolution of the marriage.
This is a piece I came across from a solicitor's website http://www.sbsolicitors.com/firsttime.html

I recieved a first time buyers grant when we joint purchased our original house but I am just confused if this is something I could avail of?


My bank has said they never heard of a seperated/ divorced person becoming a first time buyer after a transfer of title.
 
You won't get the grant again. I don't believe (but check) that you will qualify for HTB

There did used to be some additional tax relief available to FTBs; pretty sure most of those are ended now as well. There is a very minor DIRT tax relief on savings I think.

I'm open to correction on this, but my understanding is that whilst you may be classed as a FTB following divorce, I'm not sure it will make any material difference to you.
 
Hi,

The only time I've ever seen a person who has owned a property in the past qualify for a first-time buyer mortgage was because the person in question didn't have a mortgage on the property he previously owned - he inherited it from his father.

If you had a mortgage on that property then you most likely will be classified as a second-time buyer.

Have a look at this article in the IT a few years back - https://www.irishtimes.com/business...by-walking-away-from-rights-to-home-1.3511496
*See the last sentence of the second last paragraph which would confirm my view.

However, it is worth noting that even if you are classified as a second-time buyer you may still qualify for a loan to value exception mortgage - i.e. whereby you'd only have to put up a 10% deposit on the new property.

Good luck.


[email protected]
 
I dovorced in 2001 and signed over the jointly purchased home/mortgage to my ex-wife as part of the settlement. I asked the same question of revenue and was told yes and granted first time buyer status again with my next partner.
 
I don't think it's going to matter much to you these days unless you get caught on the 20% deposit bit. Years ago when there was a grant when you built a house then it was possible for a person after separation to manage to get the FTB grant again but we're talking a long time ago! These days there is no grant or tax relief so not as much benefit being deemed a FTB again for a second time.
 
Thanks for all the replies. Naively, I hadn't realized the tax relief benefit had been removed for first time buyers and I'm hoping I would have the 20% deposit so as previously stated not really much benefit to me either way.
 
The Revenue definition of an FTB and the Central Bank definition of an FTB for mortgage rules are AFAIK legally distinct and not cross-checked against each other.

In your case almost certainly the bigger issue will be how much you can borrow compared to income or deposit. The Central Bank rules are clear, if you have ever had a mortgage loan then you are not a first time buyer.

The rules are tougher for second and subsequent buyers like yourself, but exemptions are possible. Talk to a broker.
 
ivannomonet said:
I dovorced in 2001 and signed over the jointly purchased home/mortgage to my ex-wife as part of the settlement. I asked the same question of revenue and was told yes and granted first time buyer status again with my next partner.
Click to expand...
Hi there. Do you mind if I ask when you say you were granted first time buyers status again does that mean you could apply for the help to buy? My partner was married and had a mortgage 17 years ago. At the time she was quite young and don’t work so her husband sorted the mortgage but her name was on it. After two years they split and she signed the house over to him and walked away. Her name waa taken off deeds etc. he continues to live there. Now we are trying to get a mortgage and although I’m a first time buyer we are not sure about her and our solicitor didn’t seem to know either. The revenue has approved our HTB application but I’m worried the bank will look at her separation agreement and see that she was once on a mortgage and not let us proceed.
 
You must log in or register to reply here.
Back
Top