Relationship Breakup - House Buy-out

B

Babycakes

Registered User
Messages
26
Hi All,
I am in the position of buying my Partner out. It is amicable and we own everything 50:50. I have searched threads for the answer to this but with
no clear one....hence I am asking once more


Can anyone who has been in this position advise me if there is anything other than:
  • Asking Solicitor to write to Mortgage co. to remove partner from mortgage and title.
  • life policy in my own name.
  • home insurance policy in my own name.
  • Bank statements/ Payslips for take over of Mortgage. (AIP granted)
With regards Stamp Duty - we were both not FTB but bought this new build in 2005 for
€345k, current MV based on similar proprties €370k, Mortgage balance €310k.

I assume that I am buying the other 1/2 of equity - ie: 185k so I am assuming that my Stamp Liability (if any) is € 185k -125k =60k *7% = €4,200. Although revenue seem to give me conflicting views on this...

Can anyone offer me any additional advice - Thanks in Advance!
 
I was in the same situation earlier this year- you won't have any stamp duty to pay as you retain your first time buyer status because you're just 'buying more' of the same property. Revenue confirmed this to my solicitor at the time.
 
ruthf said:
I was in the same situation earlier this year- you won't have any stamp duty to pay as you retain your first time buyer status because you're just 'buying more' of the same property. Revenue confirmed this to my solicitor at the time.
Click to expand...

OP was not a first time buyer.

Babycakes said:
Hi All,
With regards Stamp Duty - we were both not FTB
Click to expand...
 
Yep - we were not FTBs - although we didnt pay SD as it was a new build and exempt from SD because it was our PPR.
 
ruthf said:
I was in the same situation earlier this year- you won't have any stamp duty to pay as you retain your first time buyer status because you're just 'buying more' of the same property. Revenue confirmed this to my solicitor at the time.
Click to expand...

Really? I can't seem to find any information on this online. We bought the house 3 years ago as FTBs ( but as we were over the 317 K threshold had to pay stamp duty). Just wondering now what would happen if we would split up and I would buy out my partner.
 
'What is the position where a person, who had obtained first time buyer relief on the joint purchase of a house with another first time buyer, subsequently acquires the other joint owners interest in the house?

A person who obtained first time buyer relief on the purchase of an interest in a house would not be precluded from obtaining first time buyer relief on a subsequent purchase of another interest in the same house provided that person has not purchased another house or part of another house in the intervening period. '

I just pulled this off the revenue website, it does confirm that as long as its the same house then you'd be exempt.
 
Thanks for that but I still don't really understand what the implication would be for me. I maintain the FTB status in relation to my current house; what does that mean in relation to paying stamp duty ? We paid 11K stamp duty. So do I not pay any stamp duty because FTBs are exempt now ? Well that would be some good news on this dreary morning.
 
From my understanding and experience if you jointly bought a property as FTBs then one goes to buy the others share out, there is no stamp payable on this as long as you haven't bought a share in any other property since the original purchase.
I think the resoning behind it is that your FTB status is on that property, so buying more of that property shouldn't lead to a second stamp duty liability as you've already paid what you needed to as a FTB.
 
Finally spoke to someone in Revenur that knew what he was talking about with regards my situation.

Just to let anyone in the same position as me know - there is a SD liability for me as I am not a FTB.

I will be paying Stamp Duty on the Equity that I am acquiring less 125k * 7%.

However, the contents value is not taxable - it is purchase price excluding contents that is taxed.
 
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