Advice on remortgaging

W

wonky

Guest
Hi, was hoping for some advice on the following.
I bought a house in Dublin a few years ago which I lived in. My folks helped me out to get started.
I have since gotten married and moved out of Dublin. My folks now want me to take on the remainder of their loan for the house.
I therefore need to remortgage for the loan. As I will be renting the house out fully it will therefore become a commercial property and will be at a higher interest rate. If I remortagage to incorpoate the loan, will I be charged stamp duty (again)?
 
If you paid the full stamp duty initially on the full purchase price, then you shouldn't have to pay stamp duty again, provided you have passed the clawback period (in effect, 2 years). I'm assuming here that you didn't buy jointly with your parents and they just gave you a straight loan.

Sprite
 
yes that's correct. I didn't buy jointly. I am the one on the deeds of the house. Ful stamp duty was paid on the purchase price. I have the house since 2004. Excuse my lack of knowledge...but what do you mean when you say 'provided you have passed the clawback period'? Do you think I should be ok?
 
Have a look at [broken link removed], which outlines stamp duty clawback if you rent the property within a certain period. They changed it last budget so that you can rent once 2 years has passed (the wording is slightly cumbersome, but that's the general idea). If the clawback did apply, you would have to pay the difference between FTB stamp duty rates and investor stamp duty rates.

So yes, if you bought in 2004, you shouldn't be liable to stamp duty clawback if you rent now.

All the best
Sprite
 
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