# joint mortgage, single name on deeds, mortgage problem?



## Judy (1 Aug 2006)

hi, 

my boyfriend and i are currently in the process of trying to build we have our planning permission and are looking at mortgages. went to speak to a mortgage broker yesterday and were told that we may run into trouble getting a joint mortgage with just my name on the deeds. For obvious tax reasons we dont want to put the site in my boyfriends name as it is a gift from my parents. 

Does anyone know if it really will be a problem for us to get a joint mortgage? Any help would be appreciated.


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## CCOVICH (1 Aug 2006)

The bank will insist that both names are on the deeds if the mortgage is in joint names AFAIK.

It's been discussed before, use the search function to read more.


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## Judy (1 Aug 2006)

thanks for the reply, not sure that its quite so cut and dry as put both names on the deeds and thats it. She did say that she was sure AIB would do joint mortgage and single title or probably a couple of more lenders, just wondering if anyone recently had actually got a joint mortgage with single name on the deeds and if so from which lender? 

thanks again


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## chico_d (1 Aug 2006)

hi,

I am currently in a similar situation where my boyfriend is getting the land gifted. Ive spoken with a mortgage broker from IFG and he said that although its quite complicated that its getting more common and banks are offering mortgages. I havnt gone into all the ins and outs with him yet but he said it wont be a problem. I think it would have to be an equitable mortgage as i cant see a bank giving a mortgage to someone without any actual claim on an asset?


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## Sarah W (1 Aug 2006)

It's the person taking on the burden of the mortgage without having any ownership of the asset taking the risk - not the lender. Most lenders will do a joint mortgage/single title application as long the basic criteria is met. The 'non-owning' partner should get independent legal advice though - if things went wrong it could cost them an awful lot more than the Stamp Duy/Gift Tax saving.

Sarah

www.rea.ie


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## Judy (1 Aug 2006)

thanks for the advise on this, we will leave it in the hands of the broker and see what she comes back with!


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## CCOVICH (1 Aug 2006)

I stand corrected then-I had thought that lenders would be loath to do this.

As Sarah W says, take legal advice (not the broker's advice)-what seems like a good idea now could throw up (expensive) problems in the future.


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## Scotty (1 Aug 2006)

Leaving the issue of the site aside, if you and your boyfriend get a joint mortgage for the construction that is in your name, he has gifted you half the value of that construction. As you are not married, the C.A.T. payable on such a gift by you would be more than the stamp duty you would save.

If you plan to get married soon (i.e. within 6 months of the mortgage being issued) there might be a way to make this work. But as has been already suggested, you definitely need to talk to an accountant.

J.


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## CCOVICH (1 Aug 2006)

Not an accountant, a solicitor.


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## Judy (1 Aug 2006)

Yeah we will talk to our solicitor about it, Does it make any difference that the planning permission is in both our names?


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## chico_d (1 Aug 2006)

Hi,
Thanks Sarah thats cleared things up for me also. Not sure about PP Judy, sorry?


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## Salmon (17 Oct 2006)

Judy, Chico d,

How dis ye get on in securing the mortgage. I'll be looking into this myself very soon and could do with all the advice available!


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## sheena1 (17 Oct 2006)

I have recently done this. The mortgage was taken out with EBS in joint names. For various reasons only my name is going on the title. (the other applicant is basically a guarantor) I experienced no difficulty doing this and the only extra condition on the mortgage was that the other person obtain independent legal advice or get a letter saying he was advised to do so but declined. A one liner from the solicitor and all sorted.....


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## daisy22 (17 Oct 2006)

Yep, I did the same.
Morgage in two names, same as above, as a guarantor on 50k of the mortgage. The deads are held in my name. The other party will be released on the mortgage when the 50k guarantee has been reached.


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## Salmon (17 Oct 2006)

Daisy,

Does this example explain it?: I have been approved for €x in my own name, but myself and my Girlfriend need €x+€50k. From what you are saying i understand that my girlfriend would go guarantor for the €50k but I would be responsible for the rest. After the 1st 50K has been paid back she could be released from the mortgage. Does this sound right. I hope so as this would be exactly what we are looking for! Which bank did you deal with?
This would mean we would have the benefit of being able to borrow a little extra without my girlfriend risking being liable for the mortgage on half a property she wouldnt legally own! Or am I missing something?


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## daisy22 (17 Oct 2006)

Hi Salmon, 

I dealt with AIB. Yes you are right in so far as your girlfriend could be guarantor for 50k and then be released form the mortgage when this amount has been repaid. Her name would not be on the deeds. However as with any loan that is guaranteed the guarantor is liable for that amount. How sure are you that she may want to be a guarantor and be liable for that amount without any equity?


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## deesmith (17 Oct 2006)

I am slightly lost! Myself and my boyfriend are going to be building a house. The site will be in his name until we marry as it is being passed from his father down. Will we get a joint mortgage if we will be getting married about a year after?


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## Salmon (17 Oct 2006)

Hi dee,

It depends on how much you are approved for. I have loan approval for a certain amount, but we want a few extra pound to put in a few extras like a garage and a sunroom. I dont think that going alone to the bank will allow us to get the money so my girlfriend and I am considering getting a joint morgage. The only problem with this is that we will need to get the site into both our names and that would mean paying a considerable amount of stamp duty. The alternative is that I get a mortgage and my girlfriend could go guarantor for the 50K. As soon as we have this paid off its all square again and hopefully we'll be wed between now and then which will mean it'll be in both our names anyway! Hope this explains my sitation dee!


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## daisy22 (17 Oct 2006)

Sound like you have a plan Salmon.
I think you should have no problem getting the extra cash and it'll all be worth it in the end!


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## deesmith (17 Oct 2006)

ah the joys of it all!!! Thanks Salmon!


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## Molly (17 Oct 2006)

just to point out , there is a difference between a joint mortgage and a mortgage with a guarantor. Generally lender's will only accept a family member as a guarantor, not partners. They will however allow a joint mortgage one on title mortgage. , the joint mortgagor in this case is not a guarantor they are fully liable for the full mortgage amount.


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## Salmon (17 Oct 2006)

Oh, I didnt know that a guarantor had to be a family member. If this is the case it throws a small spanner in the works!!!


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## Molly (17 Oct 2006)

> I didn't know that a guarantor had to be a family member


 
it doesn't have to be Salmon, however most lenders do not consider a guarantor unless they are a family member.

look at it from the lenders prospective, you qualify for x amount but need to borrow a further €50,000, if your partner was allowed act as guarantor for additional amount whose to say they will be around in say 1 years time? let's say you split up, you miss mortgage repayments, the lender goes to the guarantor in respect of the missed payments and the guarantor is your ex ..The bank are not likely to recoup any repayments against the arrears from your ex so from the banks prospective a partner is not considered a very strong guarantor.


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## 24601 (22 Mar 2018)

Sorry for resurrecting a nearly 12 year old thread but I'm wondering if anyone has any insight into the current position on this for the various lenders in the market? I know someone who has recently divorced and has six months to transfer payment to her ex-spouse in lieu of an order of sale. She is self-employed so was unable to secure a mortgage in her own right with her existing provider despite a very low LTV. She was also unable to get mortgage approval elsewhere. Her partner applied jointly with her and they got approval in principle from KBC but she was advised by her solicitor that they do not facilitate joint mortgages with single names on the deeds, so there's a fairly hefty CAT bill on the table for the partner if they proceed with them. What's the story with AIB/BOI etc?


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## 24601 (3 Apr 2018)

24601 said:


> Sorry for resurrecting a nearly 12 year old thread but I'm wondering if anyone has any insight into the current position on this for the various lenders in the market? I know someone who has recently divorced and has six months to transfer payment to her ex-spouse in lieu of an order of sale. She is self-employed so was unable to secure a mortgage in her own right with her existing provider despite a very low LTV. She was also unable to get mortgage approval elsewhere. Her partner applied jointly with her and they got approval in principle from KBC but she was advised by her solicitor that they do not facilitate joint mortgages with single names on the deeds, so there's a fairly hefty CAT bill on the table for the partner if they proceed with them. What's the story with AIB/BOI etc?



Sorry for bumping this but just wondering if anybody has any insight on this. I've been unsuccessful getting responses from the banks.


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