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Assuming a Mortgage

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    #32
    Senna
    Registered Users Posts: 8,800 ✭✭✭Senna


    Lying on a mortgage application, especially about marriage wouldn't be a good idea for obvious reasons.


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    #33
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    Senna wrote: »
    Lying on a mortgage application, especially about marriage wouldn't be a good idea for obvious reasons.
    A single application for a mortgage generally doesn't require that one lists their spouse on it. It only becomes relevant for the family home declaration, but there's no reason why he would need to lie to the bank.


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    #34
    ct5amr2ig1nfhp
    Closed Accounts Posts: 5,019 ✭✭✭ct5amr2ig1nfhp


    While the spouse does not have to be named, any mortgage application form I have seen requests your martial status and number of dependants.

    So the bank will know the OP is married, unless he was going to lie on the application (which is obviously not advised).
    They will inevitably ask if his partner is in employment.
    seamus wrote: »
    A single application for a mortgage generally doesn't require that one lists their spouse on it. It only becomes relevant for the family home declaration, but there's no reason why he would need to lie to the bank.


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    #35
    valoren
    Registered Users Posts: 5,479 ✭✭✭valoren


    It's a mess is right :)

    I would be looking at applying for a single application. Not a joint application.
    Single as in, I would be the only name on the application and not single as in Marital status.

    If my being married and my now spouse having a previous property is a non runner for the banks then we'll just have to accept that reality.

    I think the best option would be for my wife and her sister to now consider their house as an investment property, and to consider renting it out as suggested earlier (to either view this as a sell when the negative equity is cleared then sell up or her sister moves back in when out of the negative equity and takes over the mortgage herself).

    I will then apply for another house as our primary residence. I am now reluctant to get involved in their property, by either purchasing at the market rate (and they sell at a loss) or taking over her sister's share of the mortgage.


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    #36
    Butters1979
    Registered Users Posts: 1,164 ✭✭✭Butters1979


    So she doesn't want to buy your wife out of the property or rent it out, instead she wants you to pay over the market price for a house your wife already half owns?

    I would not touch it.


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    #37
    hardCopy
    Registered Users Posts: 5,969 ✭✭✭hardCopy


    I think if you paid her significantly over the market rate she could find herself liable for gift tax on the difference. It certainly works the other way, i.e. buying under market value from a relative.

    http://www.independent.ie/life/home-garden/homes/what-tax-do-i-pay-if-i-sell-to-my-daughter-26824889.html


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    #38
    Sleepy
    Registered Users Posts: 24,249 ✭✭✭✭Sleepy


    How long have you been living in the house without the sister being there? And were you paying her rent during this time?

    As you've been enjoying the benefit of her mortgage payment, you and your wife really should have been paying rent to your sister in law for however long that period is. If it's been a number of years, you may find that had you been paying her half the market rate rent, the difference between the valuation you'd place on the house and the one she'd place on it might be far less than you'd otherwise thought.


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    #39
    Butters1979
    Registered Users Posts: 1,164 ✭✭✭Butters1979


    Sleepy wrote: »
    How long have you been living in the house without the sister being there? And were you paying her rent during this time?

    As you've been enjoying the benefit of her mortgage payment, you and your wife really should have been paying rent to your sister in law for however long that period is. If it's been a number of years, you may find that had you been paying her half the market rate rent, the difference between the valuation you'd place on the house and the one she'd place on it might be far less than you'd otherwise thought.

    This is a very good point. I would assume this situation has just happened as I doubt someone would be paying half a mortgage but not living in the house for very long.

    OP can you clear that up? When this started and even why?

    Also it's not about his valuation against the sisters. It's about a valuers (and therefore when it comes to getting a mortgage the banks) valuation which seems to be lower than her valuation. This makes it sound like she's trying to take advantage of the fact he's married to her sister, as a stranger would not (usually) pay that much over the value of the house.


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    #40
    Deer
    Registered Users Posts: 592 ✭✭✭Deer


    Go to the bank and lay the circumstances out before them. You never know they may consider your case. Without going into circumstances on here but they are similar, in fact the wife was in pretty bad shape credit wise the bank granted a single mortgage to the husband in the case of someone in my family. So go in and have the chat. The worst that can happen is that they say no.


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    #41
    valoren
    Registered Users Posts: 5,479 ✭✭✭valoren


    The current situation has been in place since September last.
    My wife's sister currently stays full time in their parents house in the city centre.
    This is convenient for her work wise as the house in question is a 45 minute commute to the city.

    I spoke to a bank about a mortgage as a single applicant on a house in the locality.
    They have said that any application would need to be a joint application as I'm married
    and they refused a mortgage as they would need to see circa 900 per month saved for 9 months.

    I had thought that I could apply for a mortgage (asking price of 175k) as a sole applicant and pay this myself.
    I would comfortably satisfy the required financing/savings history/no personal loans etc I didn't see the legal side of such an arrangement. Will need to save further now for the 20% deposit and not the 10% as a FTB.


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    #42
    fyfe79
    Registered Users Posts: 4,199 ✭✭✭fyfe79


    OP, seems you (well, mainly your wife because she's the co-mortgage holder) should be paying your sister-in-law half the going rate for rent since Sept, considering the sister-in-law is not benefiting from living in the house but still paying half the mortgage.

    At the end of the day, houses are only worth what someone will pay for them. Your sister-in-law isn't that interested in selling but you are interested in buying, so can you blame her really for holding out for a deal that will suit her? In her mind why should she sell while in negative equity just to make someone else happy, even if it is her sister & husband? She could ride it out and wait for the value to rise.

    You've a vested interest in the house right now which other prospective buyers don't have, so you will need to pay more than the market rate in order to get it.


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