Top Up Irish Rental to fund overseas

[qeivinc]

I am in the process of topping up a mortgage on an Irish Investment Property to fund 15% of the price of a UK investment property. I will fund the 85% with a UK mortgage.

Can I claim the interest on the 15% against Irish or UK returns?

 

[00donal]

All depend where you are seen to be resident.

Plus - talk to a good accountant who deals with clients who have overseas properties - this is your best bet to find out the best way to do it. i.e. which country is it most advantageous to offset the mortgage interest payments against income, might be the UK or it night be here?

hope this helps,

00donal.

 

[folly]

Hi

I asked a similar question and was advised that it is the purpose for which the mortgage top-up is used that is important, thus, you should be able to claim interest relief on that portion of the mortgage. My q concerned releasing equity from our ppr and offsetting interest on that portion of mortgage against rental income from a UK property.

On another note, for the other 85% of the mortgage, the interest rates in UK are higher than here, which you probably know.

Regards
Folly

 

[simon@empire]

Hi Qeivinc,

If you are an Irish resident then it appears that what you are doing is increasing the mortgage on your Irish property and therefore, increasing the payments on your Irish mortgage. Am I right? If yes then it should be claimed here in Ireland, but please speak to a qualified accountant.

By the way in the UK you may be able to obtain an interest only mortgage and secure on the UK property.

Regards,

Simon.