Name on Title Deeds/Gift Tax Question

[Dulchie2016]

My partner has a house in his name that is mortgage free and valued at approx. €200k. We are now living together in the property and want to renovate and extend on to it and as a result can see the value increasing to approx. €320k. To carry out the work required we will require to take out a joint mortgage (re-mortgage) on the property of approx. €150k. As I earn a very high proportion of our combined income the mortgage approval will be mainly based on my income. However one of the conditions of drawing down the mortgage is that my name goes on the title deeds as the names on the mortgage must match the names on the title deeds. My partner’s income does not allow him to get the mortgage required on his own. My question is….if my name is added to the title deeds to allow us to drawdown the joint mortgage fund, will I have to pay a gift tax? i.e, in the eyes of the revenue has my partner given me a gift of half a house even though we will getting a mortgage on it?

 

[Gordon Gekko]

No - I cannot see gift tax arising here. Your argument is that he is not gifting you something worth €100k...rather, you are paying for your share by way of a mortgage, the bulk of which is on foot of your earnings.

 

[AlEl16]

Sorry for jumping in on this post but it's kinda similar to my situation so just seeing if someone had advice!my husband and I got approved for mortage,joint names!husband is getting site from father!so site has to be put in both names!!my solicitor had originally said we would put site in husbands name for 3 yrs when he then could add me? but now we have to put me on straight away will I be liable for gift tax?site is valued 45000 Thanks