land transfer parent to child

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bluebubbles

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I know that if I buy a site from my parents and its under 1 acre and less than €500k, then I don’t have to pay stamp duty on it and they don’t have to pay capital gains tax as long as it’s to be used for my primary residence.
I was also speaking to my solicitor and he said that usually the bank don’t mind if myself and a partner are both on the mortgage and only my name is on the site. Even if we’re borrowing 92% of the cost of the house when it will be finished, that is we’re both borrowing the money to buy the site but only my name will be on it.
When I mentioned this to the bank they didn’t seem very happy and told me to go back to the solicitor as they didn’t think it could be done.
Does anyone know if it can be done?
 
Yes, the solicitor is correct, however not every bank accepts this, as your partner could turn out to be your spouse and is entitled to 50%of the site. It all depends on the bank.
I know if a husband and wife were to buy a house both names would have to be on the deeds.
 
Banks arent obliged to give loans to anyone - the conditions or circumstances they insist on can vary on a case by case basis. They generally dont take instructions from a customers solicitor.
 
I understand that the bank dont have to do anything the solicitor says. I'm just hoping that they will since I'll have to find one eventually that will if my own bank wont.
 
KFB123 said:
Yes, the solicitor is correct, however not every bank accepts this, as your partner could turn out to be your spouse and is entitled to 50%of the site. It all depends on the bank.

Italicised and underlined portion above is not true. There is no automatic entitlement to 50% of a spouse's assets.

I know if a husband and wife were to buy a house both names would have to be on the deeds.

Confusing statement. If the husband and wife wish to buy a house jointly well then obviously they would both need to be on the title. But there is no requirement for a husband and wife to buy jointly.
Click to expand...

Your bank likely doesn't understand the full position. Are you going to buy the site from your parents for full market value? Or, are they giving you the site? If it's the latter, then you need to own the site in your sole name for three years, without transferring a share to your partner. If you do transfer within three years, your partner is treated as getting the site directly from your parent, and pays "Gift Tax" at full whack as they are a "stranger" to your parent. Even if married to you the treatment would be the same.

The way around this is you solely on title, but you and your partner on the mortgage. The bank even if they understand the situation may not agree to this as their security would be a property solely owned by you.

Can I suggest that your solicitor is asked to speak or write to the lender if you're sticking with this lender?
 
i am buying the site at market value from my parents but both myself and partner will be on the mortgage and the cost of the site is included in the mortgage figure.
i have asked my solicitor to give me in writting what i have to explain to the bank and see if they are happy to go with that. if not i'll ask him to speak to them directly.
Thank you for all the replys.
 
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