I'm on a joint mortgage(but not on title) for a house being built by my partner on family land. I agreed to go on the mortgage with him at the time because he was having difficulty in getting the amount of money he needed to build. His earnings have since increased and he would now qualify for the mortgage amount on his own. I am not making any contributions to the mortgage and it may affect my FTB status. I don't really see any benefit of keeping my name on it when I'm not paying into it and not on the title deeds. Do you know if it is difficult to get your name taken off a mortgage? The mortgage is with Ulster bank and it's on a stage payment basis. If I take my name off, will I still qualify for a FTB. I am hoping to buy a place of my own. I didn't realise the implications of putting my name on the mortgage for the FTB status at the time we took it out 2yrs ago. By the way, this house is still not finished so I'm not living there at the moment.
Re: Taking name off mortgage
- Thread starter Moro
- Start date
did you have any legal advice when you signed. you cannot get released unless the bank agrees...if they do not you are stuck until such time as another lending institution agrees to grant the mortgage loan in the sole name of the other person who should be taking the steps of getting you released. from what you saay i doubt if they will agree as it was only on the strength of your earnings that the loan was granted in the first place.lending criteria has tightened since then. i hope i am wrong!
You and your partner will need to contact the lender to enquire about having the mortgage account transferred into your partners name only.
Whether the lender agrees is dependent on whether your partners salary has increased sufficiently to allow him to qualify as a sole borrower.
Whether the lender agrees is dependent on whether your partners salary has increased sufficiently to allow him to qualify as a sole borrower.
Thanks for replies. No I have a few friends in the legal profession but I didn't get any such advice at the time. My partner's earnings have increased significantly since so I'd say he will qualify on his own. When I contacted the bank a few months back, they said I would have to contact my solicitor to do this. Can anybody tell what happens when a couple breaks up as it seems quite difficult to release yourself from a mortgage. I am also worried I may have lost my FTB status even though I was never on title of the property.
From Revenue Website
What is the position where the purchase monies are not provided entirely by the first time buyer?
To qualify for the relief the entirety of the purchase monies, including any borrowings, must be provided by the first time buyer. Any person, who provides part of the purchase monies or who is a party to any borrowings relating to such purchase, is also regarded as a buyer of the house and the relief will not be available unless that other person is also a first time buyer.
The basis for this treatment is that, in such circumstances, the house is held for the person providing the monies used in the purchase of the house by way of a resulting trust presumed in favour of that person. This treatment applies whether or not all the parties providing the purchase monies, or all the parties to any borrowings, are actually named in the deed of transfer.
On the basis of this, you lost your ftb stamp duty status when you were a party to the borrowings.
You could argue the toss with Revenue I suppose. You should ask your own solicitor to make the application to release you from the Mortgage Deed but your partner will have to apply for the mortgage amount in his sole name.
mf
What is the position where the purchase monies are not provided entirely by the first time buyer?
To qualify for the relief the entirety of the purchase monies, including any borrowings, must be provided by the first time buyer. Any person, who provides part of the purchase monies or who is a party to any borrowings relating to such purchase, is also regarded as a buyer of the house and the relief will not be available unless that other person is also a first time buyer.
The basis for this treatment is that, in such circumstances, the house is held for the person providing the monies used in the purchase of the house by way of a resulting trust presumed in favour of that person. This treatment applies whether or not all the parties providing the purchase monies, or all the parties to any borrowings, are actually named in the deed of transfer.
On the basis of this, you lost your ftb stamp duty status when you were a party to the borrowings.
You could argue the toss with Revenue I suppose. You should ask your own solicitor to make the application to release you from the Mortgage Deed but your partner will have to apply for the mortgage amount in his sole name.
mf
Thanks, Mf1. If I had known this at the time, I wouldn't have went on mortgage but hindsight is a great thing! I emailed revenue last year and they thought I would still qualify if I didn't contribute to mortgage or live there but obviously whoever I contacted may be wrong. I haven't contributed at at all and my partner should qualify on his own now. Would I be in the same position as a divorcee if we were to break up or is my FTB status gone forever?
hi moro....if i were you i would concentrate in getting your name released from the mortgage. as previously stated your partner has to get a fresh sanction in his name and then the existing mortgage can be released and you are scott free. if relations are good he should pursue this..if not good really he can ignore the situation which is not good for you.
I don't think Moro said anything about a break in the relationship...just a change in circumstances moneywise?
How about your partner stumping up the money that you lose for not being treated as FTB?! After all, he contributed to the reason this is so and owes you bigtime!?!
Yes, you're right, it is just a change in circumstances. At the time he applied for mortgage, I don't think he would've qualified on his own for it but now he would. I put my name on it without knowing much about FTB status etc. It's only when I started thinking about buying a property in my own name (which this one is not as only he appears on title deeds due to fact the site was gift from family) that I discovered the huge mistake I had made in going on the mortgage especially when title is not in my name. I'd really like to buy something in my own name now as I may not even end up living in this property.
B
Bean Counter
Guest
If the OP's name is only on the mortgage and not the deeds of the house then surely this must be treated in the same way as a guarantee to the bank (like a parent helping out their childeren). So if her name is not on the deeds then she hasn't purchased the house or part thereof and is therfeore still a FTB.
Logically I think the above sounds reasonable but there could be some sort of revenue law against this.
Logically I think the above sounds reasonable but there could be some sort of revenue law against this.
That's what I thought bean counter but I have asked a few solicitors and revenue and haven't got a definitive answer. I am thinking of buying something for myself as I have some money to invest and it makes a huge difference to what I can afford. I'm not really happy with living in a house where my name is not on title and making contributions to mortgage. If I buy a secondhand property, when I send my titles deeds for registeration, could I be asked to pay stamp at that stage if I'm not considered a first time buyer?