Stamp Duty.. On Mother buying into my house

J

jeny

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Hi all, I am wondering does anyone know the SD implications if my mother was to buy my Partners share of the mortgage.

It would be for around 120k she would be buying in and coming on the mortgage and I would continue to pay the FULl mortgage. she is only doing this as the bank will not allow me to take over the mortgage alone.

She still has her own property with a mortgage on it but it is not a substantial amount.

Would she (being me) have to pay stamp duty on taking on the 120k of my mortgage ( Full mortgage is about 240 house was purchased for 255 4 years ago no SD was paid as me and partner were FTB)
 
I came across this in my snooping around, seems like it applies in your case.

http://www.revenue.ie/en/tax/stamp-duty/leaflets/section-92b.html#section13


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.
 
As jeny's mother is buying the other half of the house, (rather than jeny) she will not be a FTB.

Has the bank agreed this series of transactions and agreed to the new purchasers and the terms of the new mortgage(s)?
 
Its not clear what you are asking.

It seems that your ex-partner is still on the Deeds and the mortgage as a joint owner/mortgagor. You (both?) want off the Deeds and the mortgage. The lender ( Mortgagee) will not let that happen as your income will not support the mortgage. Selling the property will probably leave you in more debt as sale price may not clear the mortgage.

So - how can mother help?

She can buy half the house and take on half the mortgage - remember - this is an awful lot to ask someone ( even your own mother ) to do. There may not be any stamp duty if the actual value of one half of the house is less than 127K.

BUT this would give the Bank comfort that they have a second person to look to if you cannot pay the mortgage.

This releases the ex-partner. Is he willing to pay anything towards any of this as he ( even though he is handing over his share) is being released from the debt and responsibilities that go with it?

Would Bank accept your mother as a Guarantor only?

Like I say it is an awful lot to ask anyone to do for you. If she did do it, it would be important that she completely understood the enormity of what she was doing.

mf

mf
 
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