Can Wife Pay Money Towards My Mortgage Easily?

We have recently been married. We are living in what was my house. The mortgage is still in my name. She has a house also that she is renting out.
We would like to start paying down the mortgage on 'my' house since we are not getting tax relief (unlike the rental).
Is there any complications (in terms of tax relief etc) in my wife taking what is her money and paying off what can be viewed as my mortgage, or is the fact that we are married make it irrelevant?

Now that you are married, she now owns half your house and you own half of hers ;-)
No, there is no problem with your wife paying against the mortgage. I am however confused with the 'tax relief' issues in rental property, are you talking about mortgage interest relief???

Thanks Luckystar.

By tax relief on the rental I meant writing of the tax liability against the mortgage interest.

luckystar said:

Now that you are married, she now owns half your house and you own half of hers ;-)

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This is entirely incorrect. Certainly as you are married to each other, you both have an as yet unquantifed interest in property owned by the other. It would only be quantified if either (a) the properties were transferred into joint names or (b) you separated and applied for Court orders.

The property owned by one in which you both live is a Family Home (under the provisions of the Family Home Protection Act 1976) but is only owned by the person named on the Title Deeds.


mf

not quite correct,she now owns everything.

sparkeee said:

not quite correct,she now owns everything.

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You're both correct. The OP's spouse does not own 50% of the property as her name is not on the deeds. However, a Court would rule that she does so in practice she does. To answer the query there should be no issue as spouses can gift or transfer their own money as they see fit. However, there may be scope for increased TRS as you'd be claiming for two people instead of one. Congrats by the way.

Thanks John Rambo. That's exactly what I wanted to know. The TRS question doesn't apply since the annual interest paid is much less than the single allowance of 10000euro.

Did she get the mortgage on her own house when she initially purchase as an owner occupier or as an investor? Remember, Banks will have different rates depending on the reason for the mortgage.

Secondly, if she purchased the house as an owner occupier and it is now changed to an investment property, she may availed of stamp duty relief, on there may now be a clawback. (one example, new house purchased as an owner occupier within five years)

MandaC said:

Secondly, if she purchased the house as an owner occupier and it is now changed to an investment property, she may availed of stamp duty relief, on there may now be a clawback. (one example, new house purchased as an owner occupier within five years)

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It is two years now (changed in one of the recent budgets).

Had thought it changed, but was not sure.

I am also assuming here for the sake of clarity that she lived in her own house before the marriage which may not be the case either.

If her own house was a PPR and is now a rental property, then the rental income is assessable under Case V(Rental Income)

mf1 said:

This is entirely incorrect. Certainly as you are married to each other, you both have an as yet unquantifed interest in property owned by the other. It would only be quantified if either (a) the properties were transferred into joint names or (b) you separated and applied for Court orders.

The property owned by one in which you both live is a Family Home (under the provisions of the Family Home Protection Act 1976) but is only owned by the person named on the Title Deeds.


mf

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mf1, doesn't owner ship not rest on who paid what and not necessarily what is in the title deeds. So in the OP's scenario if the wife starts to pay part of the mortgage she starts to acquire property rights. This would apply to married or unmarried?

OP in relation to tax relief, you are correct there is far greater tax relief on investment property than through TRS on a home so it is better to pay down the home loan first.

"mf1, doesn't owner ship not rest on who paid what and not necessarily what is in the title deeds. So in the OP's scenario if the wife starts to pay part of the mortgage she starts to acquire property rights. This would apply to married or unmarried?"

Not necessarily. The transfer of the title into joint names is a very clear and unambiguous indicator of the parties' intention to own property jointly. Paying the mortgage means little or nothing unless it has been agreed between the parties what their intention is. Paying a mortgage ( or part of) as an unmarried person to a partner ( e.g.) does not confer any automatic rights but may be taken into account in a Court situation. Very often when people do engage in such financial behaviour it is not on the basis of any agreement or understanding but , rather, a sort of ad hoc situation where either person may , in their own mind, have some sort of understanding which is not shared by the other.

mf

Thanks for all your posts. She was a first time buyer. She lived in her house for three years and then moved into my house...therefore no clawback. Now just to pay off the two mortgages! I'm sure there are a lot of couples out there who have been hit on the double; both buying houses at the peak...then meeting each other and only need one house just when the market falls. what to do with the other house. Alas.