One owner Joint mortgage partner wants to buy owners share

J

jackpete

Guest
Bought house for €270k in 2005. No stamp duty as I am FTB and partner is not therefore the deeds are in my name with a joint mortgage.

Partner now wishes to purchase my share so she will become sole owner. House is currently valued at €330k so she is willing to pay €165k.

Are there any implications for either side in this transaction.
 
The easiest way of doing this is to take a first legal charge over the total mortgage and have the title deeds transferred into her sole name ie provided she is eligible for the mortgage.
 
Thanks PM but to be honest I haven't a clue what that means - however thanks again for replying.
 
jackpete said:
Bought house for €270k in 2005. No stamp duty as I am FTB and partner is not therefore the deeds are in my name with a joint mortgage.

Partner now wishes to purchase my share so she will become sole owner. House is currently valued at €330k so she is willing to pay €165k.

Are there any implications for either side in this transaction.
Click to expand...

OK - lots of issues.

Technically, partner is not on the deeds. Therefore, it is as if she is a total stranger to you and wishes to buy this house off you. Therefore she is buying a house worth 330K. And she either pays you 330K and you pay off the whole mortgage and she gets a new mortgage. Or you sell the house to her for 165K but then she is getting a gift from you of the balance and will pay stamp duty on the market value ( 330K) and also Capital Acquisitions Tax also on the gift element.

The best advice anyone can give you is to go and talk to a solicitor / accountant who will go through the figures with you.

mf
 
Thanks mf1 - your reply is spot on - just what I needed.

One further scenario - lets say the mortgage has been paid in full and I wish to sell the property now for €165k (not the market value I know) to my partner can I do this - basically I am valuing my property at €165k and am i correct in assuming that I can sell my property for whatever price I wish!!
 
You can sell your property for any price you wish, but the seller will be liable for CAT if you sell it to her for less than market value.

Sprite
 
Thanks sprite - with the downturn in the property market does this mean that a house with a current market value of say €500k and which sells for €400k is liable for capital acquisitions tax - there will be a huge upturn in CAT if this is the case as houses especially at the top end are selling for far less than their quoted amv's.

Would be interested to hear anyones thoughts on this.
 
Hi Jackpete

You are confusing a lot of separate issues here.

If I have a property worth €500k and I sell it for €200k, I am effectively giving a gift to the buyer of €300k and they will be subject to Capital Acquisitions Tax on it.

If I put a property for sale and ask for €500k, but the best I can get for it is €400k, that is the value of the property and there is no CAT.

Revenue will ask for a valuation if they believe that it is being sold at undervalue. But it's much more difficult to assess the current value in today's market.

Brendan
 
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