Mortgage

robanemma

Hi just looking for some advice re a mortgage, I own a property that was gifted to me by my father 6 years ago in which we paid the payments of mortgage on .Long and short the solicitor put the deeds straight in my name theres currently 60k outstanding with no penalty for paying it off in one payment .If we sell the house now we stand to make 90k profit after clearing the 60k on my dads mortgage .As far as im aware solicitor 6 years ago did the paper work in such away that i woudnt be caught for cgt .As we havent purchased property would we be entitled to first time buyers scheme.Also what mortgage would i qualify for married 3 kids 90k deposit give or take ,I have a gross income of 39k plus 9 k lodge money guaranteed every year ,partner 18k gross ,no childcare costs or personal loans .New build in our town where we want to move back to hence the plan are roughly 260k

Icbaby

robanemma wrote: »

Hi just looking for some advice re a mortgage, I own a property that was gifted to me by my father 6 years ago in which we paid the payments of mortgage on .Long and short the solicitor put the deeds straight in my name theres currently 60k outstanding with no penalty for paying it off in one payment .If we sell the house now we stand to make 90k profit after clearing the 60k on my dads mortgage .As far as im aware solicitor 6 years ago did the paper work in such away that i woudnt be caught for cgt .As we havent purchased property would we be entitled to first time buyers scheme.Also what mortgage would i qualify for married 3 kids 90k deposit give or take ,I have a gross income of 39k plus 9 k lodge money guaranteed every year ,partner 18k gross ,no childcare costs or personal loans .New build in our town where we want to move back to hence the plan are roughly 260k

If it’s a new build and you’ve worked for the last 4 years you could be entitled to your 10% deposit from revenue (help to buy scheme) so that would add a handy €26k to your €90k leaving your mortgage €144k. If your not too old and can get a 20yr mortgage you could be looking at paying €650 a month on a €144 (based on mortgage calculator online).
There’s threads on Yelp to buy which I know is due to finish at the end of the year (unless it’s extended).

Smee_Again

You’re not entitled to the Help to Buy scheme as you’ve previously owned a property.

Icbaby

Smee_Again wrote: »

You’re not entitled to the Help to Buy scheme as you’ve previously owned a property.

But he would be classed as a first time buyer no?

robanemma

From revenue,s site it states "The incentive only applies to properties that are bought or built as the first-time buyer’s home. It does not cover investment properties. Cash buyers do not qualify. If you have inherited or been gifted a property it will not affect your eligibility."

robanemma

Forgot to add our age both 33 ,we would have proof of payments on bank statements of mortgage payments of 545 every month which was a transfer to my dads account .We have 6 or 7 thousand in savings aswell.

Smee_Again

robanemma wrote: »

Forgot to add our age both 33 ,we would have proof of payments on bank statements of mortgage payments of 545 every month which was a transfer to my dads account .We have 6 or 7 thousand in savings aswell.

I'm confused, you say the house was gifted to you but you were paying the mortgage to you father. Which is it?

robanemma

My dad released equity on his house to buy my house ,the solicitor put the deeds in my name when doing the paperwork so as to avoid any cgt and a written contract between me and my dad that if the property was sold in the future the mortgage from the sale has to cleared

Smee_Again

robanemma wrote: »

My dad released equity on his house to buy my house ,the solicitor put the deeds in my name when doing the paperwork so as to avoid any cgt and a written contract between me and my dad that if the property was sold in the future the mortgage from the sale has to cleared

So the equity release from your dad's house was used to buy your house (mortgage free?) which was put in your name, and you continued to make payments on your dad's house?

You won't get an answer to your question here, the only way to know for sure is to give all the details to Revenue and ask them if you qualify for the Help To Buy, and ask the banks if they'd consider you a FTB.

robanemma

No there was a mortgage on both houses at the time my dads mortgage was cleared a year later and theres a 60k mortgage left for my house in my dads name but gifted to me .As far as im aware the solicitor had a lot of work to do on the paperwork to make sure neither of us would be caught for cgt.Its more with having 3 dependants and the banks lending us money .

Geuze

Note that you seem to confuse CGT with CAT?

CGT is a tax on a gain made from disposing an asset.

CAT is a tax possibly paid by the recipient of a gift or inheritance.

I think you mean that you did not have to pay CAT on the gift of a house from your father to you?

Note that the parent-to-child CAT allowance is 325k, no CAT due under that.



Or maybe you mean that your father attempted to avoid CGT due by him on the disposal of the asset?

Smee_Again

robanemma wrote: »

No there was a mortgage on both houses at the time my dads mortgage was cleared a year later and theres a 60k mortgage left for my house in my dads name but gifted to me .As far as im aware the solicitor had a lot of work to do on the paperwork to make sure neither of us would be caught for cgt.Its more with having 3 dependants and the banks lending us money .

Like I said you won't get an answer here, but I doubt revenue would consider the entire house gifted to you if you there was a mortgage on it that you were paying even if you were paying it indirectly through your father.

robanemma

Geuze wrote: »

Note that you seem to confuse CGT with CAT?

CGT is a tax on a gain made from disposing an asset.

CAT is a tax possibly paid by the recipient of a gift or inheritance.

I think you mean that you did not have to pay CAT on the gift of a house from your father to you?

Note that the parent-to-child CAT allowance is 325k, no CAT due under that.



Or maybe you mean that your father attempted to avoid CGT due by him on the disposal of the asset?

No i understand both i just mixed them up its just the cat i would be worried about,from info ive read with the deeds being in my name and its my family home i think i should be ok when it comes to cgt Hopefully.Its 6 or 7 months down the line i just threw this post up hoping maybe somebody would of had some similar situation

Lenar3556

robanemma wrote: »

No i understand both i just mixed them up its just the cat i would be worried about,from info ive read with the deeds being in my name and its my family home i think i should be ok when it comes to cgt Hopefully.Its 6 or 7 months down the line i just threw this post up hoping maybe somebody would of had some similar situation

It’s all an unusual setup, and begs the question, why?

Had you a difficulty in securing a mortgage, and the equity from your dads house was used in a roundabout fashion to help finance your house?

I would be going back to the solicitor(s) who acted with these questions and have them devise the plan to regularise it. Had you and your dad separate solicitors?

robanemma

Lenar3556 wrote: »

It’s all an unusual setup, and begs the question, why?

Had you a difficulty in securing a mortgage, and the equity from your dads house was used in a roundabout fashion to help finance your house?

I would be going back to the solicitor(s) who acted with these questions and have them devise the plan to regularise it. Had you and your dad separate solicitors?

We were renting at the time ,i was in construction work wasnt always guaranteed ,the 3 kids were young so my partner wasnt working we would of never qualified for a mortgage ,the house prices were as low as they would go ,So qhe literally rang me one day and said that renting is dead money ive released equity on our house go buy a house .The rest is history as the say . Just the one solicitor as i said the only paper work i signed was the deeds and a contract stating if the house was sold the outstanding balance would be cleared

b.mully

Did you find more information on your query?