Father Adding Son to the Title of RIP Property

E

Eoin28

Registered User
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24
Hi,
I purchased my PPR 3 years ago primarily to get my foot on the property ladder - Mortgage €154k Val: €230K. My father owns a unencumbered RIP property - valued at 330k.
I can avail of staff mortgage facilities up to 150k at a rate of 3%. Instead of remortgaging my existing PPR i was looking at Mortgaging my Fathers RIP to release equity.
By leavin my existing mortgage untouched i would maintain the full benefit of my TRS relief. We were planning on investing the equity released.
If I am added to the title for the purposes of the mortgage facility, would I incur a tax liability?
Maybe this is an off the wall idea?​
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You can't remortgage/mortgage your father's property - only he can. You could buy into his property or you could go guarantor on his mortgage application if you have sufficient income. By going guarantor there would be no tax liability however if you became a joint owner of his house you'd have a CGT liability as and when it's sold. Forgive me if I've read you wrong but it seems like you want to raise the money for the sake of it?

Sarah

www.rea.ie
 
No I don' think this can be done either.

Maybe if there was a mortgage on your fathers RIP you could present the case to the bank along the lines of freeing up some cash for your parents now, for quality of life purposes, on a property that they intend to will to you, i.e. you buy into the property.

I have seen this done on pprs but not on RIPS & since your fathers RIP is mortgage free then maybe its a non runner.

Call up a lender/broker to confirm though.
 
Sarah W said:
You can't remortgage/mortgage your father's property - only he can. You could buy into his property or you could go guarantor on his mortgage application if you have sufficient income. By going guarantor there would be no tax liability however if you became a joint owner of his house you'd have a CGT liability as and when it's sold. Forgive me if I've read you wrong but it seems like you want to raise the money for the sake of it?

Sarah

www.rea.ie
Click to expand...
 
Thank you Sarah W.
Just to clarify - I am intending in mortgaging the property with my father in joint names. We intend to use the funds for another investment. We have no intention of selling the RIP. Down the line i may use the property as my PPR. My primary concern is - Would i incur any imediate tax liability by adding my name to the title?
Many Thanks again for you comments
 
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