What are the finacial constraints of transffering a deed?

We are in a great position of having and older sister who is willing to help with us getting a mortgage. We've checked with every major bank and broker and two routes are open us.

Basically we cannot get a residential home loan, ONLY as an investor can we get a property as my sister is a non resident.

The two routes are:

1: Ulster-bank investor buy to let. We can get named on the mortgage and deed of the house

2. Haven (Under AIB), investor loan again BUT with home loan rates. My sister HAS to be the sole owner of the property/deed but those rate look great.

In short I'm asking, what are the pit falls we should look at for at transferring the deed of a house. What are the tax issues, capital gains tax etc?

Any advice?

What rate is UB charging you?

Personally I would prefer the UB deal where your name is on the deeds, otherwise you are paying repayments on a house you don't own and have no rights too. I presume all repayments would be made by you?

How is your sister helping, is she going guarantor only or is her actual income being taken into account for repayment capacity? I can't see why the bank would insist on an investor mortgage unless her income was being included. If her income is not included for repayment capacity but only as a guarantor then I would ask the bank again to reconsider their investor designation of the mortgage, is there an option to have this changed when you move in for example as clearly it isn't an investment property, you as one of the named parties to the mortgage would be living there.

UBs rate is 4.9 there or around. Havens rate is €200 cheaper a month, or €2400 a year or €50000 over the twenty years. That sums kinda changes everything.

Our sister is using her income to get a better mortgage for us as ours falls short of what we require. We've tried all the banks in Ireland and most major brokerages. Basically because she is a non-resident homeowner (UK) she cannot get a residential home loan here. Which is were Haven makes things interesting. I'm on the hunt for info about capital gains tax, deed transferaship and whatever other fees might affect us in the future. If it's less than 50K then it would be worth it

"I'm on the hunt for info about capital gains tax, deed transferaship and whatever other fees might affect us in the future. If it's less than 50K then it would be worth it"

I think you're being blinded here and not actually considering what is the major issue

You and your spouse/partner cannot get a mortgage in your own name at the rate you want. So, you/your sister seem prepared to go along with a scenario where your sister ( for the purposes of this situation now called Elaine) buys a house, in her sole name, and takes out a mortgage on the property in her sole name. You and your spouse/partner will have no legal interest in this property - it will be Elaine's. Elaine is being generous, in one way, but also very foolish - she is taking all the risk and , should anything go awry in the future, she is the one with the mortgage liability.

You talk about "capital gains tax, deed transferaship and whatever other fees might affect us in the future" but without being specific as to what you all envisage happening (1) now and (2) down the line.

Reading between the lines, it sounds ( and maybe you could be more specific) as if you anticipate that Elaine will ultimately fade out, she will transfer the property to you and you will take out a new mortgage? or maybe you anticipate "transferring" her mortgage also? (Not possible).

You are looking at CAT - gift tax for you, CGT for Elaine ( if the property increases in value), stamp duty on a Transfer Deed

I'm going to suggest that you run your proposal past a solicitor who will be able to tease out what you want, what is possible/not possible, and what the pitfalls will be.

I'm with Montbretia on this - better to own the house in your own names, with your own mortgage.

mf

Yeah thanks guys you are both on the 'money'. I got a bit excited seeing the savings with Haven without really going into all the details. We're going to go with Ulster as they allow us named on the mortgaged so it means we can start to build up a credit history for the future. Thanks for all your help and the outstanding well thought-out and thorough answers (mf1)

Probably the best decision. But do your figures carefully, your income is obviously insufficient to obtain the mortgage you want without your sister's income too. Are you 100% sure you can afford this mortgage, if anything goes wrong she will be liable for the lot.

Well the mortgage repayments on what we are looking at are €200 cheaper than the rent we pay. The only thing that could really change (without being morbid) is I get a job. That just helps thing even further. We are ok with the repayments