Replacing my name on a mortgage

October2019

Registered User
Messages
113
Hi everyone, I have a question here about removing a name from a mortgage. My brother and I bought a house in 2005. We have since got married and moved on. I want to remove my name from the mortgage and replace it with his wife. There is equity in the house that I am willing to waive. My question is are there any tax implications here apart from stamp duty? Am I gifting my share of the equity to his wife? He cannot get the mortgage on his own. I’m aware that a new mortgage will need to be taken out by them. Thanks
 

October2019

Registered User
Messages
113
Ok no problem
Lender- KBC
House value- 280k
Remaining mortgage 180k
Equity 100k
Remaining term 15 years
Type- tracker 1.1%
I’ve approached KBC who have said that the mortgage Will remain on a tracker once they stay in that house
 

Brendan Burgess

Founder
Messages
41,451
You are giving her a gift of €50k in the way that you set it out.

I presume sister in laws are in Group C, so she pays CAT on anything over €16,250

Your brother would be in Group B which would be €32,500

So why don't you gift him €35,500 in cash.
Gift your SIL €19,250 in cash.

And they can buy it jointly from you?

Your brother and SIL would be buying your share of the house.

They would be taking out a new mortgage with KBC

Have you it in writing from KBC that he can keep the tracker at 1.1%?

Brendan
 

Brendan Burgess

Founder
Messages
41,451
By the way, if you are selling your share of the house for more than you paid for it, it will be subject to CGT.

If you are selling it for less, you will have a CGT loss which you can use against other Capital Gains.

Brendan
 

October2019

Registered User
Messages
113
You are giving her a gift of €50k in the way that you set it out.

I presume sister in laws are in Group C, so she pays CAT on anything over €16,250

Your brother would be in Group B which would be €32,500

So why don't you gift him €35,500 in cash.
Gift your SIL €19,250 in cash.

And they can buy it jointly from you?

Your brother and SIL would be buying your share of the house.

They would be taking out a new mortgage with KBC

Have you it in writing from KBC that he can keep the tracker at 1.1%?

Brendan
Oh God why didn’t I think of that!! Thank you once again Brendan
To answer your other questions
1. No I haven’t got it in writing from KBC but had a couple of phone conversations with them on it. I’ll call them Monday and get it in writing. We are at the early stages of this
2. No there will be no CGT gains, minor loss
 

Brendan Burgess

Founder
Messages
41,451
I would send them a letter or email as follows

Further to our conversation with John Doe on Friday 11 September, I would like to confirm my understanding of the process for "getting my name off the mortgage".

1) October and November currently own the property and have a joint mortgage with a tracker margin of 1.1%
2) I intend to sell my share of the property to November and Miss December .
3) If they meet your normal credit criteria, you will issue a mortgage to November and Miss December on the same tracker margin of 1.1% with the same remaining term.

Please confirm that I have understood it correctly and advise on what the next steps are to implement this.

October
 

Brendan Burgess

Founder
Messages
41,451
I suggest emailing them as otherwise, they will be very careful about what they actually say and it might take some time to get a response from them.

By emailing them, it's easier for them to reply to you to confirm or correct your understanding.

And if they do not reply, then you can follow up or go ahead anyway and say that this is what was agreed.

Brendan
 
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