Transfer of property to son

plentyofsheep

Hopefully this is in the right place, apologies if not.

My father passed away about a year or so ago leaving a house to my mother. There's a mortgage of about 20k on the house with repayments of about €160 per month, pretty much paying interest and not much more. She has a long term illness but manages to pay fine, bit tight the odd month.

Myself and my partner are currently renting with our young son while trying to save for a mortgage but a long way off if I'm being honest. My mother would like us to move in and put my name on the mortgage. The house is a little small for the 4 of us, plus we'd also like to extend our family at some point.

The idea would be to get a loan from the bank and to build an extension to the house or build a separate building in the back garden that could be used as an office for myself and a playroom for the little one.

I suppose the first question is, is this even possible?

We looked at building on to the house in the past but because the house was not in my name the bank would not sign off on a loan to build. This looks like it would solve that issue but is it really that simple?

Would the bank require me to re-mortgage instead of a loan, in which case would my mother and I be jointly assessed for the mortgage. Obviosu;y she has no real income and i dont feel my saving history is at the level required just.

Apologies for the mess above but any help appreciated

Do you have any siblings?

plentyofsheep

no, just myself

plentyofsheep

plentyofsheep wrote: »

no, just myself

Sorry for being nosy but if you had siblings it’d complicate things. This is something that needs careful consideration. You need consult with the bank and a solicitor other than your mothers one. I keep thinking back to advice given me 40 odd years ago. 2 women in the kitchen isn’t a good idea, no matter how much they might love each other!

Deleted User

Deleted User wrote: »

I keep thinking back to advice given me 40 odd years ago. 2 women in the kitchen isn’t a good idea, no matter how much they might love each other!

These type of sayings are awful nonsense!

Electric Sheep

Adelina Slimy Doorknob wrote: »

These type of sayings are awful nonsense!

That one is very accurate. Ask anyone who has had to live with their mother in law for any length of time.

mickuhaha

You would have to talk to a solicitor but at a guess you have to think about a few things.
Do you want to live with your mother in her home to which you will be expected to do things her way and look after her as she age's. If it gets to a position where you can no longer provide that care are you going to pay for her care.
The mortgage will be a new one taken out in both your names if joint and pay off the old one. The bank would want their interest regarding the house noted in the new mortgage. A benefit is down the line if you are left the house in her will you won't pay tax on it as your a resident of the property ( confirm with solicitor).

homer911

Be mindful of potential nursing home costs and the fair deal scheme if your mother's name remains on the deeds. Personally I'd find some means of borrowing the 20k, pay off the mother's mortgage, mother to gift property to son (if under the CAT threshold of 320k (?) no taxes due) then use the equity in the property to borrow to build a granny flat if possible.

OP definitely needs proper legal advice

homer911

OP - If you don't have an Enduring Power of Attorney, now is the time to be organizing it!

Trish56

Agree with Homer911. Firstly you should establish if you qualify for a mortgage and how much either in your own name only or jointly with your partner. Would recommend a broker who will shop around and get you mortgage ready if you don't qualify right now.

You then need to draw up plans for an extension to include a small Granny flat for your Mam, bedroom, kitchenette/living area, shower room so that she can live independently and apply for planning permission if required.

Once you know you how much you qualify for you then need to contact a Solicitor and arrange for the property to be transferred to you for 20k - this will then be used to clear the existing mortgage on the property. Your Mam may need to waive her rights of residence in the property in order to get the mortgage however your Solicitor will clarify this. Perhaps this should be checked before plans are drawn up.

Best of luck

Henry Ford III

Doesn't sound like the Mother could get a new mortgage because of low income and possibly age.

I'd look at a well insulated perhaps log cabin in the garden for now op.

coylemj

plentyofsheep wrote: »

My mother would like us to move in and put my name on the mortgage.

Depending on the value of the house, an option to consider is for your mother to gift you the house. You would have a CAT exemption of €320K after which you'd be liable to pay tax at 33%. But if you received any inheritence from your father, that would reduce the €320K exemption.

plentyofsheep

Thanks for the responses. Some really great food for thought and advice.

Not worrying too much about the thought of us living together in the past. We've done it in the past and they got on great. With the extension, we'd look to make it so that it had it's own entrance and all amenities so we'd be separate to a degree but as years go on it gives us and my mam the comfort of knowing we could care for her somewhat if needed in future.

A meeting with a solicitor seems to be my first port of call so I'll get looking for one.

thanks for the advice all.