First Time Buyer Query

C

CAA

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My husband and I are looking to buy our first home - neither of us have owned homes before. Simultaneously, my husband's father in Northern Ireland is arranging to have my husband's name put on his house deed in the North (in order to avoid inheritance tax when my father-in-law passes away).

Does anyone know:
If my husband is named on the deed on a house in the North, will that ruin his first time buyer status? Keeping in mind that my husband will not and has not taken any financial responsibility for the house in the North...

Thank you! -CAA
 
Technically if your husband's name is on the deed then he has an interest in that property. Is your father-in-law transferring ownership under the "survive for 7 years" rule? I think that if you own property abroad then you still lose your ftb status here. Whether revenue here though would actually be aware of the transfer is very doubtful, but you run the risk that at some time in the future they'd find out. I owned a house in Belfast before my husband and I bought in Dublin. At that time the ftb grant was available but we decided not to apply for it just in case it came back to bite us in the future.
You could try ringing revenue and asking them. They don't look for your name or contact number so at least then you'd know the true facts.
 
CAA said:
Does anyone know:
If my husband is named on the deed on a house in the North, will that ruin his first time buyer status? Keeping in mind that my husband will not and has not taken any financial responsibility for the house in the North...
Click to expand...

The rule is that you are a first time buyer if you have not built or bought a property in Ireland or elsewhere in the world in the past.

So based on the facts above, it would appear that you do qualify as first time buyers.

This should be confirmed with an appropriate professional if you are unsure.
 
Thanks for all your rapid responses.

For clarification - yes, my father-in-law is trying to avail of the 7-year clause so that his children do not have to pay inheritance tax on their father's estate. He plans to put his children down as co-owners on the house deed along with his own name. So they would all be 1/3 owners of the property in the North.

I agree that a first time "buyer" is not the same as a first time "owner". However, in a sense, the house in the North could be seen like a gift since it is not a purchase. Regarding the reciept of a gift of a house, the revenue site says A gift of a house received after the June 2000 is regarded as a prior purchase and would preclude a person from claiming the relief.

However, an inheritance is not regarded as a previous purchase and the first time buyer relief can be claimed provided all other conditions of the relief are satisfied.

Not all that straight forward to me, but if anyone else has some clearer insight in the matter, I'd be grateful to hear it!
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However, in a sense, the house in the North could be seen like a gift since it is not a purchase.

It is a gift. In any sense.

From Revenue website:

Can I avail of first time buyer relief if I previously received a gift of a house?

The relief can be claimed where the gift of the house was received prior to 22 June 2000 (or prior to 27 June 2000 in the case of part of a house). A gift received after the above date(s) is regarded as a prior purchase and would preclude a person from claiming the relief.

Can I avail of first time buyer relief if I have previously inherited a house?

Yes. An inheritance is not regarded as a previous purchase and the first time buyer relief can be claimed provided all other conditions of the relief are satisfied.

mf
 
Is there any chance your father in law could hold off adding your husbands name to his house until after you have purchased a house yourselves. This should solve things.
 
Thanks to all of you for your input. I confirmed with the Revenue service and my father-in-law's actions would negatively impact our FTB status. Pretty amazing that he doesn't need anyone's signature to put our names on the deed but his actions can cost us so much! It was tough work, but we managed to convince him to hold off going to the solicitor and changing the deed until we can get a home of our own. Your postings definitely helped get him on side - thanks a mil! - CAA
 
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