Joint Mortgage

[Killianb]

Hi all,
I am hoping to receive your advice/opinions in relation to the scenario below:

Take a mortgage of 300k on a property and the mortgage is in three names: mother, father and daughter. However ownership of the property is registered solely in the daughters name.

Although all parties are jointly liable for the loan, if the parents fully pay the mortgage will the daughter be liable for CAT? (On the 300k loan - threshold limit 225k).

If so, and if the property is in negative equity, say a value of 150k would the daughter be liable for CAT on the equitable value of the property (150k) or liable on the debit amount replayed (300k)?

 

[WizardDr]

@killianb I am not asking you to drown us with data but ..this is fairly thin and the risk is of giving an opinion without relevant facts.

A scenario that could emerge - legal ownership appears to be daughters. First question then is was there an intention that it would be joint ownership i.e. what would be called an equitable interest?

Secondly - who has paid what on the property? If Daughter has essentially been paying all of it - and the parents essentially were brought onto the loan by the bank then it could get tricky.

H/ever - if it was always their intention that they would jointly own the property - I don't see then that they could not discharge their 2/3 of the mortgage - and then gift their 2/3 of the property to Daughter. That would be €100k. Then if they also discharged her loan (1/3 of €300) then that's another €100k bringing it to €200k.

If on the other hand the evidence is all pointing towards merely helping the daughter get a mortgage and no intention of paying - then the discharge of the loan would be an inter vivos gift of €300k - as she would already own the property.

This would therefore centre on their original intentions; the equitable ownership of the property; and who has paid what when.

What would go against you is proving the intentions. There will be puritan arguments that such and such has not happened and therefore such and such consequences.