Removing sisters name from joint mortgage

Pearses1

Hi

Quick question I would be grateful for some info on.

Basically my sister and I bought house 6 years ago. Have joint mortgage with PTSB and it just so happens it's a tracker.

However she and her boyfriend are now looking for their own home and it's a given that she will want to have her name taken off the mortgage.

Has anybody past experience of this and if so is it a complicated matter?
I am now married myself and is it any easier swapping my sisters name with my wife's on the mortgage?

Many thanks in advance

Peanut2011

OP, unfortunately it is not that simple!

As joint owners you both hold 50/50 of property so there are implications on changing the title, revenue and your bank.

I've been through this and know exactly what the issue is.

From revenue point, you will be liable for a gift tax for the amount that your sister is entitled to if she just signs it over to you, however if she sells it to you, that is a different matter but sale would have to be fully above the board and evidence given to Revenue.

Regarding your bank, they will insist that you and your wife apply for the new mortgage all over again and as you know tracker is no longer available. Furthermore it does not guarantee that you and your wife would qualify for the full amount even though you were the one paying for it for however long. That was the case with me, even though I could prove that I was.

If you manage to get the new mortgage approval they will insist that your old one is paid off (from new mortgage) and new account opened, there also might be a penalty for paying the mortgage early.

Anyhow, the only way you will find out what is possible is to speak to the bank first. You will need solicitor as well all over again too.

Anyhow, best of luck.

cornflake1

Hello Pearses1 ,

Just finishing this process with my own sister. We bought in 2003 and also had a tracker with PTSB.

We first consulted with a solicitor and we had to get one each as one solicitor cannot represent both parties. My sister contacted PTSB and they sent out a letter of offer valid for 12 months that allowed her to keep the tracker. There was no change to the amount of the mortgage or the remaining term which may have helped them to allow her keep the tracker.

Her solicitor had full fees, along with stamp duty of 1% of half the value of the house. We were surprised at that but checked with Revenue and were told that as it is a property transaction stamp duty is due. My solicitor fees were less as it was less complicated on my side.

We're almost done, just waiting on the final documents.

Forgot to say, PTSB assessed her first to see if she could afford the mortgage before sending the letter of offer. She also did not add any other name to the mortgage.

Hope this helps.

Nervous Wreck

Peanut2011 wrote: »

OP, unfortunately it is not that simple!

As joint owners you both hold 50/50 of property so there are implications on changing the title, revenue and your bank.

I've been through this and know exactly what the issue is.

From revenue point, you will be liable for a gift tax for the amount that your sister is entitled to if she just signs it over to you, however if she sells it to you, that is a different matter but sale would have to be fully above the board and evidence given to Revenue.

Regarding your bank, they will insist that you and your wife apply for the new mortgage all over again and as you know tracker is no longer available. Furthermore it does not guarantee that you and your wife would qualify for the full amount even though you were the one paying for it for however long. That was the case with me, even though I could prove that I was.

If you manage to get the new mortgage approval they will insist that your old one is paid off (from new mortgage) and new account opened, there also might be a penalty for paying the mortgage early.

Anyhow, the only way you will find out what is possible is to speak to the bank first. You will need solicitor as well all over again too.

Anyhow, best of luck.

None of this is relevant if you went as joint tenants.

Ring Open24 and tell them what you're looking for; they'll send you an application form to go joint to sole. Fill in the form and send it back. The application costs €125 to process. They will credit assess you to see if you can handle the repayments without your sister. Provided you can, they'll take her off it.

Peanut2011

Nervous Wreck wrote: »

None of this is relevant if you went as joint tenants.

Ring Open24 and tell them what you're looking for; they'll send you an application form to go joint to sole. Fill in the form and send it back. The application costs €125 to process. They will credit assess you to see if you can handle the repayments without your sister. Provided you can, they'll take her off it.

If you say so! I know what I went trough! TWICE!