Getting a mortgage with a sibling who is older

C

cillian_dublin

Registered User
Messages
7
Hi
I wish to purchase a property for investment in Galway- approx E350000
I am late 40's, my sibling is early 60's and retired early with lots of cash earning nothing.
I was speaking to a broker who said that we have some problems.
1) If my sibling has say a 30% deposit ( and me none for example) they will have to gift me half the deposit and I pay tax over 40k
2) Their name must be put on the mortgage( I was happy to just have me on the mortgage) as lender will insist that their name is on the deeds and the max term we can get is a couple of years due to the age of my sibling.

Is this all true?

Cillian
 
"Is this all true?"

Probably.

And you might have to review what you want to do - perhaps you can't afford to buy an investment property at that level?

How much can you borrow on your own? Maybe work off that scenario?

mf
 
Thanks mfi
Yes I could get the mortgage on my own I suspect without any problems but I have no deposit- thats why we wanted to do together...
 
How much of a mortgage do you want?

What is your salary, what will the rent be, who will pay to furnish the house, who will manage it, who will pay the legal costs? Do you or your sibling have any other debts? Or assets?

What does 'tax over 40K ' mean?

Who came up with the idea to buy a property?
 
My salary is 100k. We need a mortage of 230 k. Sibling has 120k deposit
Rent E1850 pcm
We will pay all costs between the two of us- it's a joint venture.
We both have some assets which are either debt free or low LTV
If I'm 'gifted' 60 k as my 'portion' of deposit I must pay gift tax at 33% on 20 k
I came up with the idea- I have the ability to raise a mortage and sibling has funds but no ability to raise a mortgage. We need each other!!
 
What happened the 40K?

What assets do you have.

How much would a mortgage of 230K cost? And over what term would it be?

I thougth the banks would only give out 70% on investment properties?

Who is going to pay for the furniture and legal costs.

How come you've no savings if you're earning 100K

You're drip feeding information.
 
Cillian

If you don't have the deposit, you can't handle the risk involved and should not buy the property.

If you really want this property, sell some of the other assets.

Brendan
 
Thanks guys,

I've concentrated more in property than saving Bronte. I have a small amt of savings- perhaps 15k. I've my home and and a couple of buy to lets - total value maybe 1 million and mortages of 350k.
You're obsessed on the legal fees lol- We estimate 10 k for legal fees and furnishing property- It's in walk in condition. We will pay it between us.
I am selling one of my properties in the spring- I have given notice to my tenant. It will provide me with about E100k in cash net.
I would like to buy a property now and not next year...
My problem seems to be getting an investment mortage with his age on the deeds.
Cillian
 
Does he have existing life policies that would cover the length of mortgage you want? If he did a bank might be happier to lend because if he had to take one out at this age it could be expensive. Technically they don't need a life policy for a BTL or over 50 but it would solve a perceived risk from the bank's point of view with a longer term.

Have you tried UB, now I'm not sure what their criteria are these days but it used to be the loan term was determined by the age of the youngest borrower who would then be first named on the mortgage which is actually your case. In general couples usually put the man first rightly or wrongly but it would often have to switched around in cases where there was a big age difference and the younger age was needed as the principal applicant.
 
cillian_dublin said:
You're obsessed on the legal fees lol-
Click to expand...

Don't you think this kind of info might have been helpful from the get go. Initially I thought you were a nutter who at 40 + years of age wanted to buy a property with no money.

Can't your sibling loan you half the deposit as a loan. No gift tax. And you just tell the bank it belongs to you. If they ask how come you got this sudden windfall say your brother owed it to you. That solves the deposit issue. But it will not change his age. Nor yours for that matter as I'm guessing they will give you max 15 years.

Value:
1850 X 12 = 22K annually. On a property price of 350 K. At 12 Times = 264K or at 15 times = 330.

I think that's overpriced.

What the profit after all costs on the rental income.

Why are you so eager for this one that you can't wait until you sell the other one?

Why are you selling the property?
 
Maybe your broker doesn't have an agency with ICS Mortgages. They offer buy to let mortgages up to age 75, so your brother's age would not necessarily be a show-stopper.

Best regards,
Dave Curry (broker)
https://www.linkedin.com/in/davecurryirl
 
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