Trading up - take tracker with us?

L

larry123

Registered User
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We have recently sold our apartment which is on a tracker mortgage. It had been rented for a few years since my wife and I outgrew it after our kids came along. Unfortunately, the recent changes in legislation caught us out and for the past 2 years or so, we were getting 40% less than the neighbours for the same property thanks to the RPZ legislation. Hence, our decision to sell.
Our plan is to use the proceeds of the sale to trade up on the family home to something with a bit more space. We have 2 kids and another on the way.
My question is; can I transfer the tracker mortgage from the apartment to the new house?
Also, considering the apartment was our PPR for the majority of the time we owned it, is there any allowance made for that when calculating the CGT due?
 
Porting tracker - depends on the bank but pretty sure you'd have to sign up before redeeming the old mortgage and they give approx 6 months to drawdown new mortgage. Which bank was it
No idea on CGT but would be interested in replies to this!
 
Hi Larry

Which lender?
Has the sale gone through yet?
How much is the mortgage on the property?

On the CGT issue, are you selling the property for more than you paid for it? If so give the figures and the dates.

Brendan
 
Thanks for the replies...
The lender is AIB. There's €163,000 left on the mortgage.
We will be selling for more than we paid.
Bought in 2002 for €315. Selling now for €365.
Sale hasn't gone through yet. Deposit paid and accepted in writing.
Cheers,
Larry
 
Get into AIB immediately. Today.

Apply for that tracker mover product.

Don't close the sale until you have been approved for it. You won't get approved retrospectively.

It applies only to homes, but I don't think that they have a problem with people who let for a short period of time.


Brendan
 
CGT will be roughly as follows if it was your family home for 9 years.

Capital gain €50k
Less family home relief 10 /15 (number of years family home + 1)/total period of ownership
Gain attributable to investment period: €16,600
Less annual exemption €1,250
Taxable: €15,000
CGT @ 33% = €5,000
 
Last edited:
Thanks a million for the advice. I've been on to AIB and started the process.
The new rate will be 1% higher than the tracker so not technically taking it with us but it's still a full percent less than the lowest variable rate they are offering at the moment.
Will send off the application and associated documents asap and hopefully be approved before sale goes through.
Regarding the payment of CGT, how do I do that?
Does it need to go through an accountant/ solicitor or can I do it myself online?
Thanks again,
Larry
 
Thank you for all the advice so far. Another question...do I need a tax expert to do the capital gains tax return for me or can I do it myself?
 
RE CGT. If the house is in joint names I think you can each claim the €1,250 annual exemption.
 
Update: AIB Bank has refused our application based on the fact that one of us is no longer in a permanent job.
Max they could offer us is €20,000. To say we're disappointed is an understatement
 
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