Mortgage question - Single (first-time buyer) application or joint application?

D

Daz2012

Guest
Hello All,

Myself and my partner are thinking of buying a house. Currently I own a property and I do not wish to sell. It is in negative equatity but is currently rented out. My partner does not own any property.


Our details :
-------------
My Salary = €36,000
Partners Salary = €26,000
Partner Savings = €40,000
My Savings = €40,000
My Mortgage outstanding = €150,000
Monthly Repayment = €880
Monthly Rent = €650
No other loans for either of us
Both working in same company
Looking for roughly €100,000 Mortgage
--------------

We were hoping to get a Mortgage for a second property using my Partners salary only. The loan would then qualify for the first time buyers relief. Can I give my partner a sum of cash to add to her deposit? (As we
are not married is this subject to gift tax?)

From a practical point of view if we ever split up we would like to know that the liabilty of the Mortgage would be equally split between us. Also that any rights to the property value would also be equally split between us.

Do people know how we could achieve the above from a legal point of view? Can we change the deeds from one person to both of our names? Would this result in Stamp Duty charge? Also can we change the mortgage from one person to both our names?

Marriage is on the cards. Would this change our situation other than not having to pay gift tax for my share of the deposit?

What do you think is our best course of action based on our figures and circumstances?

A) Apply for joint Mortgage while not married
B) Apply for Mortgage in partners name only while not married
C) Apply for joint Mortgage after getting married
D) Apply for Mortgage in partners name only when married

Your feedback is much appreciated.
 
Yes. CAT (Gift tax) above minimal threshold levl would apply to any gifts between you. However you could use the sum as an advance payment for a "rent a room" as you will be living in the property.
Practically, if the mortgage is in your partner's name she will be responsible for it. However you could put a legal agreement in place on ultimate liability/property rights. This would be difficult as what constitues "splitting up" from a legal context?
AFAIK the deeds cannot be in joint names if your Partner is availing of 1st time buyer relief. Any subsequent change would require permission from the Bank/BSoc.
Marraige would not significantly change the issue re 1st time buyer relief. It would mean that the property becomes a Family Home if both of you resside in it & no CAT would be payable.

Joint loan would probably be simplest. However, no 1st time buyer allowance. I haven't done the sums on your surplus funds/ likely eligibility. You can do this on line on with most of the web-sites of the financial institutions.
There are positives and negatives to all of your proposals. I would be wary of specifically advising on a specific one.
 
Hi,
This post is as close as it gets about my situation. Your advise would be appreciated.

Me and my partner are not married. Both foreign nationals - me 7 & partner 1 year in IRL). I have never owed a property, my partner has property on home soil (bought 6 years ago).
We just started looking for a home. Question is would we be clarified as first time buyer to get a tax relief?
If not, is it possible to put property on me and sign legal joint ownership after (or something like that)?
And the question is how can they figure out that something is owned in foreign soil?

Thanks!
 
You must log in or register to reply here.
Back
Top