Renting my house - Does bank need to know?

T

turtle77

Registered User
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Hi,
We have a house in Dublin. We have moved home to wexford, and have tried to sell the house.
It was on market for 6 months, without an offer. So, we are going to rent it out, as I feel we have no alternative
Do I need to notify my mortgage lender?


I hope I'm in the corrct forum
 
Don’t think its of too much concern to your Bank, but Revenue would be interested, if the Dublin residence has not been your Principal Private Residence for 5 years, revenue can claw back more stamp duty as it is now being treated as an Investment Property. The other thing of course is you’ll have to enlist a fairly savy accountant to advise regarding the tax payable on the rental income.
 
Don't forget to tell your home insurance company too - they will probably want more money if it is rented . Also - if it is empty they may not insure it after a certain number of weeks of being vacant.
 
We moved to Wexford 2 years ago from Dublin. We rented out our house for a year after moving to see if things would work out for us (ie new jobs). You will need to contact your insurer as the house insurance is different for a rental property. As said previoiusly you will need to register the house as rented with PPTB. The stamp duty didn't apply to me as I had already paid it when i bought the house, if however you didn't pay stamp duty then there is claw back to Revenue. I didn't notify the bank of our situation (I figured they wouldn't care as long as the mortgage was being paid). Hope this helps.
 
CSM said:
The stamp duty didn't apply to me as I had already paid it when i bought the house, if however you didn't pay stamp duty then there is claw back to Revenue.
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And even if you had paid SD then you may still be liable for more - i.e. if the rate that you paid as an owner occupier was less than what an investor would have paid on the same purchase!
I didn't notify the bank of our situation (I figured they wouldn't care as long as the mortgage was being paid).
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The terms & conditions of many (most?) owner occupier mortgage agreements explicitly state that the borrower must inform the lender if the property ceases to be an owner occupied PPR.
 
CSM said:
We moved to Wexford 2 years ago from Dublin. We rented out our house for a year after moving to see if things would work out for us (ie new jobs). You will need to contact your insurer as the house insurance is different for a rental property. As said previoiusly you will need to register the house as rented with PPTB. The stamp duty didn't apply to me as I had already paid it when i bought the house, if however you didn't pay stamp duty then there is claw back to Revenue. I didn't notify the bank of our situation (I figured they wouldn't care as long as the mortgage was being paid). Hope this helps.
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If you did not reside in this house for minimum 5 years prior to renting it out you will be fully liable to pay stamp duty on the purchase price of the house at Investor rates
 
bamboozle said:
Don’t think its of too much concern to your Bank, but Revenue would be interested, if the Dublin residence has not been your Principal Private Residence for 5 years, revenue can claw back more stamp duty as it is now being treated as an Investment Property. The other thing of course is you’ll have to enlist a fairly savy accountant to advise regarding the tax payable on the rental income.
Click to expand...

Budget 2008 changed 5yr claw back to a 2 yr claw back of SD.
 
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