Hi all, appreciate i probably need some professional advice here but worth posting in case anyone has any feedback.
My brother and i bought an apartment maybe 15 years ago. Really the only reason i was involved was that he couldnt get the mortgage alone and it was still a good idea to buy as much property as you could so i went on as co buyer with him and we have a joint mortgage.
It has always been a slight issue for me when buying my own property or moving mortgage as lenders also look at the other mortgage and factor that in as part of my overall indebtedness (obviously if course). As my brother had lived in it at and then rented it (he was abroad now) and i had no benefit from it we signed an agreement between us witnessed by an accountant (in 2016) stating that i was tranferring my ownership in the property to him for a nominal consideration (it was in negative equity at the time) and that he would be entitled to all rental income, look after all expenses and cover the mortgage. It also said any future sale proceeds would accrue to him solely and if the event of either of our deaths and discharge of the mortgage from the protection cover it would accrue to his estate in full.
He adhered to all of this and the property is now worth maybe 150k more than the remaining mortgage, the current tenant is moving out and he would like to sell. He has submitted tax returns annually declaring the full rental income and was registered with the PTRB etc so all above board.
So he is now abroad, doing very well but has his own properties where he is and has no need for an apartment in Ireland (nor do i), it should sell well and he would like to get his money out (it will still sell for slightly less than we purchased for 20 years ago so no CGT).
His accountant is now worried that as a non resident, when he applies for his tax clearance to have the funds released from the solicitor that the fact i havent declared my share of the rental income could become an issue (he has declared 100% of rental income). He is now suggesting that we get the mortgage transferred to my brothers sole name prior to the sale (which i am sure would be a nightmare given he hasnt lived here for 15 years)
Any thoughts?
My brother and i bought an apartment maybe 15 years ago. Really the only reason i was involved was that he couldnt get the mortgage alone and it was still a good idea to buy as much property as you could so i went on as co buyer with him and we have a joint mortgage.
It has always been a slight issue for me when buying my own property or moving mortgage as lenders also look at the other mortgage and factor that in as part of my overall indebtedness (obviously if course). As my brother had lived in it at and then rented it (he was abroad now) and i had no benefit from it we signed an agreement between us witnessed by an accountant (in 2016) stating that i was tranferring my ownership in the property to him for a nominal consideration (it was in negative equity at the time) and that he would be entitled to all rental income, look after all expenses and cover the mortgage. It also said any future sale proceeds would accrue to him solely and if the event of either of our deaths and discharge of the mortgage from the protection cover it would accrue to his estate in full.
He adhered to all of this and the property is now worth maybe 150k more than the remaining mortgage, the current tenant is moving out and he would like to sell. He has submitted tax returns annually declaring the full rental income and was registered with the PTRB etc so all above board.
So he is now abroad, doing very well but has his own properties where he is and has no need for an apartment in Ireland (nor do i), it should sell well and he would like to get his money out (it will still sell for slightly less than we purchased for 20 years ago so no CGT).
His accountant is now worried that as a non resident, when he applies for his tax clearance to have the funds released from the solicitor that the fact i havent declared my share of the rental income could become an issue (he has declared 100% of rental income). He is now suggesting that we get the mortgage transferred to my brothers sole name prior to the sale (which i am sure would be a nightmare given he hasnt lived here for 15 years)
Any thoughts?
