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Partners name on house/mortgage

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  • 21-02-2012 2:47pm
    #1
    Lisie247
    Registered Users Posts: 44 ✭


    Hi There,

    Does anybody know the process if you want to add your partners name to a mortgage/house that was originally bought by one person? What are the costs involved??
    If they are already paying half for everything (mortgage, food etc) they might as well have the security of 'owning' the house also?

    Thanks!


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    If you're married, you can have your spouse's name added to the deeds for free. Though you will need a solicitor to carry out the transaction, who won't be free.

    If you're adding a unmarried partner to the deeds, then that's effectively the same as giving half of your property to a stranger. You will have to pay stamp duty to register the new deeds (1% on the value up to a million), your partner will have to pay capital aquistions tax on the portion of unmortgaged value being transferred, and they will need to get approval from the bank to be added to the mortgage.

    If you're not married, by far the easiest solution is to make a will bequeathing the entire property to them in the event of your death. Or get married.


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    #3
    Lisie247
    Registered Users Posts: 44 ✭Lisie247


    Thanks Seamus for the reply! that clears that right up!


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    #4
    Lisie247
    Registered Users Posts: 44 ✭Lisie247


    Oh and would they still have to pay capital acquisitons tax on the property even though it is not a gift as such??


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    #5
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    Yes, "Gift tax" doesn't really exist. Any transfer of wealth is subject to CAT, whether it's a gift or not. Certain exemption limits apply where there's a blood relationship between the people, but basically if you're giving somebody something for free, they have to pay tax on that value of that.


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    #6
    Lisie247
    Registered Users Posts: 44 ✭Lisie247


    Oh right..And would this be the case even if the property is worth less than what it was bought for? So 'wealth' as such is not really being transferred..

    Although I suppose the bank would probably not allow someones name to be added to a negative equity mortgage.....

    Had a look on the revenue website there and its so confusing!!!


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    #7
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    If you're in negative equity, there is no wealth being transferred so there will be no CAT. However in order to establish this you will need to get the property professionally revalued.
    In any case, stamp duty will still be payable on the entire value of the property.

    The bank may allow you to add someone's name onto a negative equity mortgage if the bank are satisfied that the other person has adequate means - two names are better than one. But beware, the bank may use the opportunity to take away a tracker or other beneficial rate.

    It may be worth actually booking in with a solicitor for a chat. The recent Civil Partnership bill provides statutory rights for non-married partners in relation to property in the event of death or separation.
    If you've been living together more than 5 years you may be wasting your time and money adding names to deeds and so forth.


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    #8
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Bear in mind also that your partner would lost their first time buyer status which might come in handy if you guys wanted to relocate in the future.


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    #9
    Ritchi
    Registered Users Posts: 319 ✭✭Ritchi


    athtrasna wrote: »
    Bear in mind also that your partner would lost their first time buyer status which might come in handy if you guys wanted to relocate in the future.

    Only if she is able to buy a place without your income being counted. I think.

    She'll only be a first time buyer, if she's buying on her own, or with other first time buyers.


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    #10
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Ritchi wrote: »
    Only if she is able to buy a place without your income being counted. I think.

    She'll only be a first time buyer, if she's buying on her own, or with other first time buyers.

    I know people who have done it, the house is in the FTB's name only but it's a joint mortgage.


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    #11
    Ritchi
    Registered Users Posts: 319 ✭✭Ritchi


    athtrasna wrote: »
    I know people who have done it, the house is in the FTB's name only but it's a joint mortgage.

    Fair enough.


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    #12
    Marcusm
    Registered Users Posts: 10,328 ✭✭✭✭Marcusm


    Lisie247 wrote: »
    Oh right..And would this be the case even if the property is worth less than what it was bought for? So 'wealth' as such is not really being transferred..

    Although I suppose the bank would probably not allow someones name to be added to a negative equity mortgage.....

    Had a look on the revenue website there and its so confusing!!!

    Don't do it! There are likely to be few advantages to either of you in proceeding this route. While the bank gets the benefit of chasing both of you for any mortgage shortfall, it diesn't seem to accrue any benefits to you as a couple beyond what could be included in a will (and then only hope value) or under the recent changes for unmarried partners. Neither of these latter routes would impose any obligations on your partner.


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    #13
    lomb
    Registered Users Posts: 6,031 ✭✭✭lomb


    athtrasna wrote: »
    Bear in mind also that your partner would lost their first time buyer status which might come in handy if you guys wanted to relocate in the future.

    What relevance is FTB status? I thought they did away with any stamp reduction etc.


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    #14
    Ritchi
    Registered Users Posts: 319 ✭✭Ritchi


    Mortgage interest relief is double for FTBs I think.


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    #15
    tonyw28
    Registered Users Posts: 6 ✭tonyw28


    I'm just about to buy a house on my own as my partner is a student.
    We are getting married in 2015, so what I understand is she will automatically be added to the deeds.

    I have some questions
    1. How does it work in terms of life assurance, can she then get a policy to say if she dies the mortgage gets paid for? Or are we better off taking out a life assurance policy on her now for x amount that would cover cost of mortgage repayment?

    2. Can I actually get her officially added to the mortgage easily since she will be working full time when we get married.
    I am sure the bank would love to have another name on the mortgage.
    Do you think after 2 years of receiving my mortgage payments every month and I approach them that I have been married and would like to add my wife to the mortgage would they also be willing to release more funds? For example if house is worth 250,000 that they give me an extra 50,000 so I can build an extension.

    We are thinking after we finish decorating the house and getting married that we extend out the back and a mortgage is the cheapest type of loan you can get so be handier getting it added to the mortgage repayments


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    #16
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    lomb wrote: »
    What relevance is FTB status? I thought they did away with any stamp reduction etc.

    No property tax until 2016.


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