first time buyer with a non first time buyer can it be done

K.O.L

can a couple who one is a first time buyer and the other is not buy a second hand house and put everything in the name of the first time buyer then when all contracts are signed maybe six months down the line can the oher half of the couple go down as owner as well?? can anyone tell me

gamer

say buyer 1 buys house 250k cash ,then after 6 months i suppose sell 50percent of the house to spouse ,thats ok, if you have 250k cash ,you.ll pay extra legal fees to do this,maybe save money use 1 solicitor to do all the conveyancing ,if you have 250k cash.
IF you,r getting mortgage ,i suppose you,d need to ask mortgage companys permission, and they,d need to see proof of income for buyer 2,spouse ,
so i dont know if you could do this if house is mortgaged , a mortgage broker would know this anyway.

adam.number2

AFAIK, if you are married, then No you can't.... but the civil servants will be back on tomorrow, during working hours, they should be able to tell you.

MysticalSoul

Am afraid no Solicitor in their right mind would agree with this. 6 months is such a short length of time too. Are you getting a combined mortgage but hoping to put it in just one person's name? Would you get approval individually for a mortgage of the amount you seek? Can one party realistically afford the repayments without any contribution from the other?

K.O.L

my partner who is a first time buyer will be putting everything in her name initially, i will be contributing to everything so my partner will be able to afford it. i just need to know if it can be done, were trying to avoid paying stamp duty, i heard that its possible to do, but not sure just want to get a bit of info before i go!!

K.O.L

irishamethyst wrote: »

Am afraid no Solicitor in their right mind would agree with this. 6 months is such a short length of time too. Are you getting a combined mortgage but hoping to put it in just one person's name? Would you get approval individually for a mortgage of the amount you seek? Can one party realistically afford the repayments without any contribution from the other?

Are you a solicitor??????? surely to draw up a contract with my partner wouldnt be hard.

johnnyskeleton

K.O.L wrote: »

Are you a solicitor??????? surely to draw up a contract with my partner wouldnt be hard.

Not paying taxes is easy. It's the getting away with it that people find troublesome.

There are lots of ifs buts and wherefores in something like this, but essentially if you are getting married or get married later on then yes, otherwise it is problematic one way or another, ranging out from having no little or rights to the property in one extreme and being prosecuted for a revenue offence in the other.

Here's the revenue guide but I assume you'll be hiring a solicitor for the conveyancing so discuss your options with them.

Moonbeam

Buy a new house that will avoid stamp duty,depending on size of course.
It is more the TRS at the higher rate that I would be worried about.

mel123

my friend was trying something like this, and at the end he got stung for the stamp duty. it doesnt matter if you will be contributing every month, the bank dont know this, therefore, your partner needs to be able to afford a mortgage on her own in the first instance.

Glenbhoy

Tbh, you can try this and you might get away with, it is however straight forward tax evasion, in other words, it is illegal and if you're caught you'll have to pay the stamp duty with penalties and enusure that the revenue are always on the lookout for whatever you might be up to next.
In addition, you're taking a risk contributing to an asset purchase that you've got no rights to. A bank will not give a joint mortgage unless both names are on the deeds, you gf's income will need to be verifiable for bank purposes and if not, then she won't get a mortgage (in other words contributions from you will not be allowable for their purposes). There are many, many more issues, but I can't be bothered now, have a look on askaboutmoney where this has been done to death.
Basically, it won't happen. Remember the revenue do not work to the letter of the law, instead they look at the substance behind each transaction, in your case it'll be fairly obvious what you're up to.

MysticalSoul

No, I am not a Solicitor, but do work in a Solicitor's office. Other people have rephrased what I tried to say, that her income alone would need to meet the mortgage approval. Also, if you transfer the Deeds after six months, during any searches that would need to be done, it would be highlighted that you were resident there anyway - bills going there, name on bills etc. Also, to put the Deeds from one name to two names isn't cheap either, so would cost a pretty penny to do that.

Also, you need to look at worst case scenario - if the Deeds are in her name, and you ended up splitting, you would have a hard fight on your hands trying to claim any % rights to the property.

How Strange

I'd say yes it can be done; talk to your solicitor. All you need to do is change the name on the deeds at a later stage and if you do it through the same solicitor I can't see why it could cost a lot of money.

The solicitor sends a letter to the bank saying that the mortgage will now be in two names but as long as you don't want to change the bank account which the mortgage is paid from then it's quite a straightforward amendment of legal docs. The bank doesn't care as long as there is no change to the mortgage payments. If you do want to change the bank account then it's a bigger issue as you will effectively have to reapply for a mortgage and there will be stamp duty implications.

If a solicitor charges a lot for changing the name on the deeds, and a friend was in a similar situation so I remember her talking about it, then you're being ripped off.

Calina

How Strange wrote: »

If a solicitor charges a lot for changing the name on the deeds, and a friend was in a similar situation so I remember her talking about it, then you're being ripped off.

and this is morally worse than tax evasion how?

The_Conductor

Guys the situation is that it is considered "an aggressive tax avoidance measure" by the Revenue Commissioners. While you can purchase the property in the name of the FTB for the purposes of availing of favourable stamp duty, quite legally, you enter the illegal tax evasion position, once the partner who is not a FTB makes the property their PPR.

Its been discussed a number of times on this forum and elsewhere.

How Strange

Calina wrote: »

and this is morally worse than tax evasion how?

Where did I say anything about tax evasion?

When I said ripped off I meant in relation to solicitors fees in response to your post saying this would be a very expensive exercise.

My friend was living with her partner, paying 50/50 towards mortgage and bills but the property belonged to her partner. They didn't want to sell up and move somewhere else so they got advice from the bank and the solicitors about how to best go about getting the mortgage in both names. The bank advised this was the best way and the solicitor concurred that if this was the banks advice then to go head. My friend lost her FTB buyers status as a result so when they do move they will both be liable to stamp duty.

I'm not endorsing tax evasion, I'm just replying to the OP's post.

iguana

Another thing to add is if you attempt this there is never any point which you will be in the clear. It could take 10, 20 or 30 years and you could get a letter from Revenue saying you owe them the SD, the TRS, any interest they have lost in that time and any penalties they choose to levy on you.

I can understand why you will want to try this, but imo you'd be better off just paying up. (Or actually I recommend you forget about buying for another 18-24 months and let prices come down more, you'll save a lot more that way than you will by not paying SD now.)