Buying property - will I make it before the end of the year?

PaddyCar

I have mortgage approval from bank and have just paid booking deposit on new house so everything is up and running. I am beginning to get worried that i might not make the deadline for interest relief (31st december 2012)...How long does it normally take before the process is complete and i can drawdown the mortgage???thanks in advance

killers1

PaddyCar wrote: »

I have mortgage approval from bank and have just paid booking deposit on new house so everything is up and running. I am beginning to get worried that i might not make the deadline for interest relief (31st december 2012)...How long does it normally take before the process is complete and i can drawdown the mortgage???thanks in advance

It's a bit of an how long is a piece of string question to be honest. You have more than enough time to get everything in place from your side and ready to close before year end. How long it will actually take depends completely on the vendors plan as they control the timeframe and will depend on how organised they are to sell and how efficient the solicitors involved are. All things going to plan it's more than conceivable that you can close this side of the deadline.

NIMAN

My advice, keep the pressure on your solicitor!! And make them keep the pressure on the other side too.

mactheknife19

Keep in mind its not just the day you sign the contract and draw down the mortgage. The MIR is applied against your first repayment on your mortgage. Often your first DD payment is 1 month after the drawdown, so be aware that you could drawdown mid Dec and your first DD is not until Jan......and you miss out in MIR. If this looks like its happening to you you can go into you bank and make a physical payment direct onto the mortage. Even just €1 so it show that the mortgage started in 2012.

killers1

mactheknife19 wrote: »

Keep in mind its not just the day you sign the contract and draw down the mortgage. The MIR is applied against your first repayment on your mortgage. Often your first DD payment is 1 month after the drawdown, so be aware that you could drawdown mid Dec and your first DD is not until Jan......and you miss out in MIR. If this looks like its happening to you you can go into you bank and make a physical payment direct onto the mortage. Even just €1 so it show that the mortgage started in 2012.

That's incorrect. You become entitled to TRS as soon as your mortgage starts to accrue interest i.e from the date of drawdown.

Cushie Butterfield

Yes, killers1 is correct. You become entitled to TRS as soon as your mortgage starts to accrue interest, but you can't apply for TRS until you have commenced repayments on your loan.

PaddyCar

thanks for the info.. gonna have to keep the pressure on my solicitor and hope it all goes smoothly

mactheknife19

killers1 wrote: »

That's incorrect. You become entitled to TRS as soon as your mortgage starts to accrue interest i.e from the date of drawdown.

Ok, was just going on something the bank said when I was talking through the application with them. The other reason I would question it is the TRS form does ask Date of First Repayment, not the draw down. So if OP puts down Jan 2013, how would someone in Revenue know that the drawdown was actually 2012.

killers1

mactheknife19 wrote: »

Ok, was just going on something the bank said when I was talking through the application with them. The other reason I would question it is the TRS form does ask Date of First Repayment, not the draw down. So if OP puts down Jan 2013, how would someone in Revenue know that the drawdown was actually 2012.

The Bank will confirm it to them when Revenue are instructing the bank to reduce the monthly DD accordingly. There will be cases where a client draws down in Dec, takes a 3 month deferred start and won't have a first repayment until April 2013 but will still be entitled to TRS. Although the Revenue website says to apply after the 1st repayment has gone through it is possible to apply as soon as the mortgage issues and you have the relevant details from your lender.

orlaanne

I wish they would make it a bit clearer on the revenue website, we are in a race to to beat the deadline as well. Signing contracts next week hopefully but still no sign of a closing date. Can you really do that? Pay 1 euro off? I might do it, just to be sure.

killers1

orlaanne wrote: »

I wish they would make it a bit clearer on the revenue website, we are in a race to to beat the deadline as well. Signing contracts next week hopefully but still no sign of a closing date. Can you really do that? Pay 1 euro off? I might do it, just to be sure.

You can ring the Revenue TRS helpline number and they'll answer any queries you have...

mactheknife19

killers1 wrote: »

You can ring the Revenue TRS helpline number and they'll answer any queries you have...

It all depends on who answers the phone, you can get a different answer from different people I'll find. So killer1 can you answer my question. Am I entitled to TRS when I close next month.
I'm not a FTB (had TRS for 7 years on the house I sold a few months ago), but think I will be entitled TRS at the lower rate for the years years 2012 - 2017

killers1

mactheknife19 wrote: »

killers1 wrote: »

You can ring the Revenue TRS helpline number and they'll answer any queries you have...

It all depends on who answers the phone, you can get a different answer from different people I'll find. So killer1 can you answer my question. Am I entitled to TRS when I close next month.
I'm not a FTB (had TRS for 7 years on the house I sold a few months ago), but think I will be entitled TRS at the lower rate for the years years 2012 - 2017

Yes, you are absolutely entitled to TRS at the lower rate till 2017

orlaanne

I got an email from Revenue this morning confirming you need to draw down before this year ends and you'll qualify.

dufferlover

Here's our experience. I know no two cases are the same but might be some help.

We had our offer accepted on August 1 and we still haven't closed, despite the house being empty. I think it depends on the vendor's situation. Our solicitor was away for two weeks in August so this didn't help matters but in all it's a much slower and frustrating process than I thought it would be. We have a closing date of this Friday so we have our fingers and toes crossed it happens.

Best of luck with it

PaddyCar

Solicitor just contacted me today to say they have recieved contracts from vendor. Hopefully closer to finish than start!!

Idbatterim

Solicitor just contacted me today to say they have recieved contracts from vendor. Hopefully closer to finish than start!!

thats good news, I have heard that this can sometimes drag on for month for various reasons!

mathie

Perhaps the government will just extend it out another year like they've kept doing the last few years.

Just scaremongering trying to get people to buy houses.

Idbatterim

Perhaps the government will just extend it out another year like they've kept doing the last few years.

Just scaremongering trying to get people to buy houses.

true, but in fairness, they are getting virtually SFA from them in stamp duty now that its 1%...

PaddyCar

since i am buying a new property do i have to pay vat on top of the agreed price or is it included??