Bought house together - breaking up

M

Merlin

Registered User
Messages
120
Hi there,
My partner and I had have recently moved into a house we bought of plan 1 1/2 years ago.
Unfortunately things don't work out.
I want to keep the house but am not sure if that will be possible ? From what I understand I would have to get a new mortgage and I doubt it that I will get the amount on my own ?
Who do I have to approach first ? My lender to see what they have to say or the solicitor ? (Mortgage sum is 238.00K and it's a 2 bed so I would be able to rent out).
Any help is much appreciated.
M.
 
The solicitor would be my first call - s/he is working for you. The bank manager is working for the shareholders !
 
demoivre said:
The solicitor would be my first call - s/he is working for you. The bank manager is working for the shareholders !
Click to expand...

And the solicitor is working for a firm/partner/themselves.

If it is a question of money, you would need to talk to the bank/broker etc. There are probably tax efficient ways of doing effecting the transfer that your solicitor could advise you on.
 
And the solicitor is working for a firm/partner/themselves.

Each to their own I guess. I employ a good solicitor and a good accountant and they are the guys that I talk to first regarding legal/financial matters before I discuss anything with a bank manager - that there are people out there who would trust their bank managers advice ahead of their solicitors beggars belief to my mind but maybe there there are bank managers out there who will give you independent advice - I just haven't met any yet.
 
Merlin.
If you intend to hang on to the house, you are back to getting mortgage approval as if you were buying the house from scratch. Back to the basics, income, payslips, etc. YOu need to find out first if you qualify for a mortgage off your own bat. THEN, when you are clear where you stand, you can approach your solicitor in terms of the best way to achieve this - be it paying off your partner for her part of the equity etc.
 
Thanks for your replies...

I have an idea now what I'm in for and where to start. Hopefully I will be able to get a mortgage on my own. It would break my heart to lose that house.

M.
 

You mightn't trust the bank manager, but you don't need his/her advice. You will need them to get the mortgage though. The solicitor/accountant is the best person to advise on how to structure the transaction, but they have no bearing on whether you will be approved for the additional funds.
 
Hi there,
It's me again. Currently going through the process of applying for the mortgage again to buy my own house... complete pain but I have only myself to blame ....

Once I have the house in my sole name I obviously won't be entitled to my expartners tax relief anymore. Suppose he will have to ring the tax office and tell them or does the bank look after that ?
Does anyone know how that's going to impact his FTB status if he decides to buy in the future ?

M.
 
Does anyone know how that's going to impact his FTB status if he decides to buy in the future ?
Click to expand...
Simple - he won't obviously be a ftb next time around as he has previously bought a house.
 
Hi ubiquitous,

But he was only on the name of the deed for 5 month and is not being bought out by myself or anything so he has made no profit at all from this ?

M.
 
Hi Merlin,

The issue of profit is not relevant - your partner part-owned a house. This is why he is no longer a First Time Buyer.

In the following situation, a person is still deemed to be a first time buyer: -

A spouse to a marriage the subject of a decree of judicial separation, a deed of separation, a decree of divorce or a decree of nullity in the case of the first acquisition of a house by the spouse following the separation or divorce provided that the spouse had, in relation to the former marital home,
  • left that home;
  • not retained an interest in that home;
whose separated/former spouse continues to occupy that home, which home was occupied by both spouses prior to the separation or dissolution of the marriage.

But your post infers that you were not married, so it doesn't apply to you.

Sorry to hear things didn't work out for you.

Liam D Ferguson
www.ferga.com
 
House valuation

Hi there,
Back for more advice. I have just got the deeds of my house transferred into my sole name and have been informed by my solicitor that I need a house valuation for the Revenue people. Appearantly they need to make sure that I don't cheat them out of stamp duty etc.
I was told to go to a QS rather than an auctioneer (as they would value the house on the high end of the market). Have rang 3 and all of them said they don't do that type of thing.

Any idea where I should go ??

Thanks very much
M.
 
Re: House valuation

I suspect that you actually need a Chartered Surveyor - try the SCS.
 
Thanks Clubman,
Got a quote for 150 + 21% VAT - trying one or two others now just to see...

M.
 
Unfortunately it is indeed 21%. €150 plus VAT for a valuation is fairly standard.
 
Fair enough - thanks for the clarification.

Merlin - you might want to check with your solicitor if Revenue need a market value or a reinstatement cost valuation. I am pretty sure that Revenue will want a market value valuation while a Chartered Surveyor may be more inclined to provide the latter (which will often be lower and not acceptable to Revenue).
 
Thanks all - will go for that one so.

Another question. According to my solicitor it will be another 3 month before all the documents are back and completed (land registry etc.).
At the moment I'm still getting mortage tax relief for myself and my ex partner (he signed all the necessary papers last week).

I take it I will have to inform the revenue commissioner that I am now the sole owner of the house.
1. Do I have to do that now or when all papers are completed ?
2. Can I do that or does my ex partner have to call the revenue people ?

Cheers
M.
 
You should contact Revenue now and inform them that you are the sole owner and that the mortgage interest tax relief at source should be adjusted appropriately.
 
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