Putting parent on mortgage and title deeds

I have been told by my mortgage broker that the only way possible I can get a mortgage is for my father to go on the mortgage as well as on the deeds. This is non negotiable if I want to get the required mortgage and this is the only institution prepared to give me a mortgage on any basis- I have also tried the various institutions myself.

The house will be my principal private residence in about 1 year's time when I move back to Dublin and I plan to live there for at least 5 years. I plan to rent it for the next 6-12 months.

My concerns are as follows:

Firstly if my father dies, I will be liable for CAT for his half of the property - we have agreed that he will leave it only to me. His other assets would already push me over the CAT threshold of 450k

Secondly if I was to sell on the property while my father was still alive would he be liable for CGT on his half of the gain.

Thirdly if father was to "sell" his share onto me in a year or two's time I would incur a stamp duty charge(albeit at 50% of the rate) and he will most likely incur a CGT liability

My father will be making no contribution to the house in any shape or form apart from allowing his name to go on the deeds.

Any thoughts/advice on this would be appreciated......

I can't see why he would need to go on the deeds - the mortgage, yes, but why the deeds? For all the reasons you've outlined it would be bad advice. Go back to the broker/lender to double check.

Sarah

www.rea.ie

Hi,

Thanks for the previous response. I have been over this with the broker a couple of times and have also tried the institutions directly myself. However the only one who is prepared to give me the money (or anywhere near it) is PTSB who are insisting that my father goes on the deeds also. Crazy I know but that's how it is unless I can find some way around this

I don't understand why your father would have to go on the deeds either. Can you push the issue directly with PTSB perhaps again? The only option I can think of is for your father to execute a deed of trust indicating that he only went on the deeds/mortgage as otherwise you would not be given the mortgage, but that he has never contributed to the mortgage, nor does he intend to, and then you keep evidence of all mortgage repayments coming from your own account, and in time, if anything happens to your dad, whip out the deed of trust and show to revenue and also show that all mortgage repayments were made solely by you. In time once either your own income rises, or the outstanding balance is low enough for you to qualify for the mortgage in your own right you could re-mortgage and if your dad is still alive, ask him to execute a transfer into your sole name, if dead, his per rep can do it using the deed of trust to avoid stamp duty/ CAT problems. However the flaw with this is the terms and conditions of the loan offer which evidently will state the property is to be in the names of yourself and your dad and your solicitors undertaking to the bank on the title will be to do this and perhaps the deed of trust may fall foul of this. You could explore this option with your solicitor in any case. I do think though that PTSB should not insist on this and that your first step should be again to approach them.

Thanks for your detailed response. I spoke to the solicitor about the deed of trust idea last week and as you rightly suspected, she does not believe that this will work. I have tried contacting the Revenue as well but could not get through to anybody who could give me a response (or at least a response that I wanted).

have you tried EBS, generally they will do joint mortgage sole title.

Thanks for that. Yes tried them too. No joy there either...