First Time Buyer Relief

M

maudflanders

Guest
A quick question. My partner and I are looking to buy a house. I have a property which I bought 4 years ago but my partner has never owned a property. We are looking to apply for a joint mortgage. Does he qualify for the FTB relief or does the fact that I already have a property and will be named on the mortgage cancel out his entitlement to this relief?
 
When you ask about First Time buyer relief are you enquiring about Stamp Duty or Mortgage Interest Relief.

You and your partner will be liable for stamp duty when purchasing jointly as you have owned property before.

However for mortgage interest relief purposes, you will still qualify as a first time buyer for the next 3 years (the higher relief is availbale for the first year of purchase and 6 subsequent years) despite the fact that you are changing properties.

Your partner will qualify as a first time buyer for this year and the subsequent 6 years and benefit from the higher tax relief.

You must both complete the TRS1 form when your mortgage is drawn down and return to the revenue.
 
Is this correct? I thought that they could have a joint mortgage application but she would just put her name on the deeds and would then avoid having pay stamp duty?

Obviously, your partner might want to get something in writing saying that he owns half the property in order to protect himself.
 
Boe - technically this is possible. If one individual purchases a property as a first time buyer, they can have a joint mortgage if they can get a mortgage provider to agree to this (It was acceptable practice in the past but who knows in todays climate).

However the Revenue state "Where a person who is a first time buyer uses the proceeds of the sale of the house they previously occupied which was owned solely by their spouse or partner to buy a house solely in their own name, first time buyer relief would not be available, as the spouse or partner (not being a first time buyer) would be providing the purchase monies for the house"

Did not wish to complicate the issue for Maud as a joint mortgage sole title is an issue which should be raised with thier bank and/or solicitor.
 
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