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Is it possible to exchange properties with someone else?

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  • 20-04-2016 6:39pm
    #1
    jayjay2010
    Registered Users Posts: 505 ✭✭✭


    This might seem like an odd question, but say I have an apartment with a mortgage left on it and my friend has his apartment also with a mortgage on it and we decide that we would like to literally ''swap'' apartments? If they are of the same value is this in any way possible?

    Or would we both have to put them up for sale and place an offer on each others apartments and go through the whole process etc etc...

    Is this in any was possible or just a no go?


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    #2
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Best thing to do is rent them from each other. Speak to an accountant about the tax implications but if the rent was set at a nominal amount it might work.

    If the mortgages are just standard variable rates then just sell to each other.


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    #3
    PhoenixParker
    Registered Users Posts: 2,677 ✭✭✭PhoenixParker


    jayjay2010 wrote: »
    This might seem like an odd question, but say I have an apartment with a mortgage left on it and my friend has his apartment also with a mortgage on it and we decide that we would like to literally ''swap'' apartments? If they are of the same value is this in any way possible?

    Or would we both have to put them up for sale and place an offer on each others apartments and go through the whole process etc etc...

    Is this in any was possible or just a no go?

    You don't need to place them for sale and place an offer etc. It's basically a private sale. Agree a price between. Talk to the bank about redeeming/moving your mortgages so you have a feel for how that works. You'll basically be trading up. Then each of you contact a solicitor and get the paperwork taken care of.


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    #4
    egan2020
    Registered Users Posts: 567 ✭✭✭egan2020


    Like Mark Anthony said just buy them from each other. To exchange properties, both parties would have to get the consent of their respective lenders. You would then effectively have to get a new mortgage on the property you propose ending up with so your solicitor would have to investigate title etc. And you'll pay 1% stamp duty on the value of the property too.


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    #5
    Pkiernan
    Registered Users Posts: 4,310 ✭✭✭Pkiernan


    If you simply give each other the properties you will both be subject to CAT.


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    #6
    MrDerp
    Registered Users Posts: 991 ✭✭✭MrDerp


    Any solicitor will want to do due dilligence on this, and so should you and your mate. You should also get surveys (do you know what you're buying, could you fall out over it later?)

    Each of you will pay
    1% Stamp
    Legal fees of at least 1000 + VAT
    Land registry fees, which depending on the value of the property would be about 700-800 euro.
    Other fees and stamp of about 200

    So expect to pay about 4-5k each to swap a couple of 200-400k apartments.

    Worth it? Up to you.


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    #7
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,218 Mod ✭✭✭✭godtabh


    My sister in law did this recently with her father in law. She traded up and he traded down. Moved mortgage onto the new property. Bank were happy to do this provided that the equity increased.

    No mortgage on the other side.

    Had to go through the 'selling process' i.e full legals.


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    #8
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    Pkiernan wrote: »
    If you simply give each other the properties you will both be subject to CAT.

    Not necessarily. We swapped a piece of land on our farm with an equally sized piece on our neighbours farm a while back. There was stamp duty, legal feels and land registry fees but no money changed hands nor was there any CAT.


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