Going halfs on a second property.

M

monkeyman

Registered User
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Strange one this. I own my own house which I live in most of the time in the West. My girlfriend wants to buy an apartment in Dublin to live in but cannot afford it on her own. So a few questions I'm not sure of.

  • The fact that I am not a first time buyer, does it penalise both of us for Stamp Duty if the property was over 317K?
  • Could the mortgage be in both of our names and the deeds just in her name (Mad I know!!). COuld I get around it that way.
  • Another question thats popped up. The fact that I live in my own house and we would be going halfs on this new one, would the revenue see one of these as an investment property for me and would I be liable to tax?Cheers,
MM
 
Your girlfriend will lose her ftb status is she buys with you.

The Revenue's rules are quite strict and if you are seen as owning half the house, she will lose her ftb status.

You could remortgage your own home and lend/give the money to her. However, the Revenue may still regard you as a part owner and refuse her ftb status.

Check out the Revenue's website, where this is covered in some detail.

Brendan
 
monkeyman said:
Cheers,
Will have a read of the revenue pages. Forgot about the FTB grant as well.
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the only way you could do without stamp duty problems is if you gave her the money as a gift , and had no interest in the purchase...

which is not a good idea in case things go bad...
 
the only way you could do without stamp duty problems is if you gave her the money as a gift , and had no interest in the purchase...
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Would even that work? I suspect that Revenue could take a view that the gifted monies were going towards the property purchase. From [broken link removed]...

Any person, who provides part of the purchase monies or who is a party to any borrowings relating to such purchase, is also regarded as a buyer of the house and the relief will not be available unless that other person is also a first time buyer.
The basis for this treatment is that, in such circumstances, the house is held for the person providing the monies used in the purchase of the house by way of a resulting trust presumed in favour of that person. This treatment applies whether or not all the parties providing the purchase monies, or all the parties to any borrowings, are actually named in the deed of transfer.
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LDFerguson said:
who provides part of the purchase monies or who is a party to any borrowings relating to such purchase
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as far as I know that doesn't apply if the money is a gift without no ties... its were its a loan or some hold on the house that there is a problem...

ie. i give someone a gift , and they use that to buy house is ok , but I give someone money to buy a house is not....
 
LDFerguson said:
Would even that work? I suspect that Revenue could take a view that the gifted monies were going towards the property purchase. From [broken link removed]
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Thats the info I was looking for.

Now to have a chat to the solicitor to see how to get around it!!

Cheers Folks.
 
Another question thats popped up. The fact that I live in my own house and we would be going halfs on this new one, would the revenue see one of these as an investment property for me and would I be liable to tax?
.
 
Giving a gift large enough to allow a girlfriend to buy a house is also likely to result in a gift tax liability, I am pretty sure the lowest threshold would apply here.
 
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