Being Gifted a House - Consequences?

B

bugler

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My father today brought up the prospect of giving to me the family home I was raised in and which my parents are still living in. Their thinking is that having it may aid me obtain a mortgage for my own home purchase (I plan to buy in the next couple of years). The thought of it raised some questions in my mind:

- Is there actually any benefit to doing this? Will it be taken into account when seeking a mortgage?
- What other consequences are there? I understand I will lose ftb status. This is no longer relevant in terms of stamp duty, I am not particularly concerned by losing mortgage interest relief (in all likelihood I won't buy this year anyway..), so perhaps the most pertinent effect will be in terms of the mortgage rate I could obtain. Of course, seeing as our governments seem addicted to meddling in the property market there is a chance a further incentive could be introduced for fibs that I would miss out on.
- The house is probably only worth €75-€100k, so CAT and CGT shouldn't apply(?)


I have read that leaving houses in a will is usually the most sensible option, I am curious if given the particulars of my case that is still the case.
 
If your parents are still living in the house they should not transfer it to you. It is possibly their only asset and the likley outcome of the above is that the bank form who you will look for a mortgage will probably insist on registering a mortgage against it if they give you the mortgage in the first place. Your parents should protect their own security for the future and hold on to the property. If they wish to give it you they should consider making a will.
On current values their would be no CAT and no CGT if they have lived in the property since they acquired it as principle private residence relife applies.
 
Agree fully with CB 01

It doesn't really help you getting the house and it may hinder you.


  • It would be very bad for them. There are often unintended consequiences. What happens if you marry and split up and your spouse claims half your assets?
  • What happens if you marry and die? Your spouse would get the house.
  • What happens if you fall out with your parents but own the house in which they live?
Brendan
 
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