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Sticky Situation need help

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  • 14-09-2006 10:40am
    #1
    grasshopper2
    Registered Users Posts: 19 ✭


    My 2 Sisters are putting a deposit on a house today. The only problem is that one of them has just returned from living in Germany and has no Job as yet. So I'm drafted in to be put on the Mortage- the place won't be ready to move in until Jan/Feb and by then my Sister will have a full time job.


    I will put my name on the mortage until my sister get a job and then we will change namse over.

    I won't actually be paying anything towards the cost of the house or any of the mortage

    What I want to know is what will I be losing out on? Tax Wise by not being a first time buyer? Also will I be able to a 100% mortage again if I have already signed this mortage.

    Anything else like stamp duty that I will be losing out on??

    Thanks


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    #2
    aniascor
    Registered Users Posts: 503 ✭✭✭aniascor


    As well as losing out on your stamp duty allowance for FTBs, you will lose your tax relief on interest paid on your mortgage. I would think very carefully before agreeing to do this for your sister, because in the long run, it is likely to cost you thousands.

    Also, in the future, you may not be entitled to a 100% mortgage (if you wanted one) because you would no longer be a FTB.

    Get your own solicitor and get advice for yourself before agreeing to this.


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    #3
    Lex Luthor
    Registered Users Posts: 11,220 ✭✭✭✭Lex Luthor


    ah ya, but its his sister after all....if your family can't help you out, then you can you ask....


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    #4
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    His name won't be on any mortgage. It will only be on the mortgage application. As long as he is out of the picture before the deal goes through and the house is conveyanced, nothing bad should happen.

    If he does go on the deeds, then transfers to his sister, I would imagine there would be stamp duty to pay.

    Chat to the solicitor might be worth it though.


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    #5
    aniascor
    Registered Users Posts: 503 ✭✭✭aniascor


    Lex Luthor wrote:
    ah ya, but its his sister after all....if your family can't help you out, then you can you ask....
    Yes, I agree - but if you re-read the original post, you will see that grasshopper2 was enquiring about what the implications were for things like stamp duty, getting a 100% mortgage, etc.

    No point in agreeing to do this now, and then falling out with your sister down the road because you didn't research it properly and didn't fully understand what you were agreeing to.


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    #6
    Sponge Bob
    Banned (with Prison Access) Posts: 25,234 ✭✭✭✭Sponge Bob


    if he is a sort of guarantor then he does not lose his FTB status I think

    http://www.revenue.ie/press/pr_stamp240605.htm


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    #7
    ircoha
    Closed Accounts Posts: 2,290 ✭✭✭ircoha


    OP: do the sisters understand the issues that will arise when one wants to buy the other out etc if it is a joint purchase, which is different to a joint mortgage?


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    #8
    Victor
    Registered Users Posts: 78,393 ✭✭✭✭Victor


    ircoha wrote:
    OP: do the sisters understand the issues that will arise when one wants to buy the other out etc if it is a joint purchase, which is different to a joint mortgage?

    Buying together


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    #9
    grasshopper2
    Registered Users Posts: 19 ✭grasshopper2


    Hi again,

    There seem to lots of questions regarding the above. We were advised by the Mortgage Advice Store to obtain legal advice. However we are not sure if a solicitor can answer all questions relating to tax implications, deeds, FTB status, possibility of having to re-mortgage when changing the names over. We were also wondering if it would be possible for the sister who is not yet working to put her name on the mortgage (as she will be the one making the repayments once she starts earning.)

    The problem is we don't know if the solicitor will be able to answer and advise on all of the above. We are wondering who can. Should the mortgage provider be able to help also? Would they dedicate as much time as is needed in this case to ensure the mortgage goes through?

    We would just like to clarify all issues before we go ahead and need to know who best can advise.

    Thanks


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    #10
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    The solicitor will do deeds, FTP status and possibility of having to re-mortgage.

    The depths of the tax implications he won't be able to advise to it, but i'd say he'll give you the overview.

    The long and short of it is that if you put your name on the deeds of the house, you'll need to be compensated for losing your stamp exemption or FTB grant. If your name is on the mortgage but not the deeds you will be in legal neverland as regards the house and if your name doesn't end up on either of these (is just used as a placeholder to apply for the mortgage, etc but doesn't appear on any conveyance or on any actual mortgage, then everything will probably be fine.

    But go and see solicitor for sure. You'll need one anyway (everybody needs one sooner or later)


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