# Mortgage interest relief, PRTB, and the dole



## theblonde (26 Jan 2009)

Hi there. 

I bought my two bed apartment in March 07. I am moving into my boyfriends house at the end of February and I intend renting it out. I have some questions in relation to this and I would be very grateful if I could get some answers. 

1. When I register with the PRTB do I automatically lose my mortgage interest relief as its no longer my residence? It’s currently about €200 a month. 

2. My current employment is very unstable at the moment. I have been looking for a new job, but to no avail. If I do need to sign on, will the income I get from the rent be taken into consideration even if it just covers the mortgage repayments? Also, will my boyfriends income be assessed as I will be living with him before I qualify for the dole? 

Thanks a million


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## lotstosay (26 Jan 2009)

Can't really answer the first question, although I rented my place out for a year in 05, I used an auctioneer, and I didn't have an issue.  
If you have been working for a few years your social welfare is based on your social welfare contributions paid in your previous year of employment, so you qualify regardless of your financial situation.  It is called unemployment assistance and I think there is a distinction between that and welfare.


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## jamesdoherty (30 Jan 2009)

i would also like to know the answer to the questions the Op has asked.

as far as i know you will loose your TRS but once registered with the PRTB you can claim that loss as an expense and it comes off your tax bill at the end of the year

what id really like to know is if a person has a mortgage of 1100 euros per month as an example and they have property rented out for 800 per month,if they are means tested will the rental income cause their social welfare payments to be reduced even though they are making a loss on the rental side of things?


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## gipimann (30 Jan 2009)

Means on rental property for Social Welfare purposes are based on the Capital Value of the property less any mortgage(s) on it, not the actual rental income.

For example, property valued at 150k, mortgage of 120k, assessable means is 30k.

For Jobseeker and some other Social Welfare payments, the first 20k of those means is disregarded, and the remaining 10k is assessed at €1 means per 1k - so there would be €10 means assessed each week.

The actual rental income isn't assessed.

Means testing only applies to some schemes - for example Jobseeker's Benefit isn't means tested, Jobseeker's Allowance is.


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## toadettee (30 Jan 2009)

Hey

I have a similiar question, Me and my boyfriend bought a house 4 years ago but both lost our jobs this time last year, we have sustained living in the house for one year on social welfare payments and mortgage relief , but we cannot do it anymore so we have the oppurtunity to move into his parents house and rent out our house.

It has been brought to our attention by a few people this might be seen as income every month and as we know our mortgage relief will immediatly stop, we are wondering if our social welfare will stop aswell, as we will be receiving income but only to pay our mortgage.

any response would be appreciated!


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## exbroker (30 Jan 2009)

Hi, just in response to the OP, you should probably contact the TRS section of the revenue commissioners first of all to have your TRS cancelled. When you register with the PTRB, they assume you have already done this. They can share the list of rented property owners with revenue comms, at which point you're in hot water if still claiming TRS!
The interest paid on the mortgage, and also other costs such as home insurance and renovation/maintenence costs can be set off against rental income. Any additional profit is then taxable, but you have to highlight this on your tax return.


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## gipimann (31 Jan 2009)

toadettee said:


> Hey
> 
> I have a similiar question, Me and my boyfriend bought a house 4 years ago but both lost our jobs this time last year, we have sustained living in the house for one year on social welfare payments and mortgage relief , but we cannot do it anymore so we have the oppurtunity to move into his parents house and rent out our house.
> 
> ...


 
Your property will be assessed as outlined in my earlier post - capital value less mortgage - if you are on a means-tested Social Welfare income (you may be on Jobseeker's Benefit at the moment which isn't means-tested).

You will lose any Mortgage Interest Supplement you are receiving at the moment.


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## jamesdoherty (31 Jan 2009)

good information there gipimann

just one question, when you say "if your propery is valued at x amount" do the social welfare just take your word on what your property is worth or how do they value it?

im assuming if you are going to be means tested, you would have to get a statement from your mortgage provider to show the social welfare what you owe on the property, is this correct

thanks


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## gipimann (1 Feb 2009)

From the SW guidelines on assessing Property Values - 

_"Where a capital value assessment of a house or land property is appropriate a current State valuation certificate is obtained from the Valuation Office or in exceptional cases where there is a delay in obtaining a State certificate, a valuation from an auctioneer with valuation qualifications may be used provided the Deciding Officer is satisfied as to its accuracy_."

And yes, you would have to provide evidence of any outstanding mortgage as part of the assessment.


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## toadettee (3 Feb 2009)

ok thanx gipimann, i was means tested a year ago, just cant afford to keep the house going on whats coming in.


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## gipimann (3 Feb 2009)

Might be worth asking for a review of your means, given that the market value of your property has almost definitely gone down.   Ask about it next time you sign on.


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