Buying a new house with partner.

O

ocj

Guest
Hi there,
I'm new to this site so go easy on me.
Myself and my girlfriend are going to buy a new house and we want to buy it in her name (so i can still be a first time buyer in the future) and then wright a contract between us after the deal is done something like a "tenants in common" or "joint tenancy" contract.
I have searched this forum and can't seem to find a situation like mine.
Does anyone here know which way we should go with this?
Any help would be great

Cheers
 
You can apply for a mortgage - joint borrowers sole title. The lender will make a decision if they are happy to proceed this way. This depends on the repayment capacity of both borrowers. For non married couples they may make it a condition of the offer that title is registered in joint names.

Check out the keyposts for examples of a joint ownership agreement. It is in both your interests that third party legal advice should be sought when signing this.

Also check out the Revenue site re FTBs as it sounds like your girlfriend has already owned a property and there are conditions relating to FTB status if the proceeds of the sale are being used to buy a new property.
 
Thanks Pm1234
I'll check all these out.
My girlfriend is also a first time buyer and the only reason we want her name on the contract is so in the future we can get our next house in my name to get the benifits of FTB's

Cheers
OCJ
 
in similiar situation myself and was told that couldnt do it by PTSB.
 
found this ... dunno if it might be of help

Let me know if any bank agree!!
 
If a married couple splits up, and one spouse buys a new home, then they are treated as a first time buyer as long as that spouse has not owned a house before.

So you could get married and you would preserve your ftb rights, but only if you split up.

Brendan
 
I'm taking it that when you go to buy the second house in your name you will be using the proceeds for sale of the first house or and equity release

Just an issues you should know from revenue


What is the position where a person, being a first time buyer, purchases a house using the proceeds of the sale of a house owned by their spouse or partner who is not a first time buyer? Where a person who is a first time buyer uses the proceeds of the sale of the house they previously occupied which was owned solely by their spouse or partner to buy a house solely in their own name, first time buyer relief would not be available as the spouse or partner (not being a first time buyer) would be providing the purchase monies for the house.

Which means you won't get FTB's second time round
 
I was in a similar situation except my boyfriend was building a house on a family site and I couldn't go on title because of tax liability on site if not family member. I ended up going on the mortgage but not on title because we needed to get a bigger mortgage. I have to say I regret it as I am in no man's land now. I had to sign a legal waiver at the time regarding the title as the bank required this. To this day, I cannot get a definitive answer as to whether I still qualify as a first time buyer if I was to buy something in my own name.
 
Moro said:
I was in a similar situation except my boyfriend was building a house on a family site and I couldn't go on title because of tax liability on site if not family member. I ended up going on the mortgage but not on title because we needed to get a bigger mortgage. I have to say I regret it as I am in no man's land now. I had to sign a legal waiver at the time regarding the title as the bank required this. To this day, I cannot get a definitive answer as to whether I still qualify as a first time buyer if I was to buy something in my own name.
Click to expand...


If you send in a HL01 (you can get it off most affordable housing application froms from a few websites [broken link removed])

send this into the tax office if they stamp it and post it back you are a first time buy if they dont well sorry to say your not
 
Thanks everyone for your replys,
A lot to think about here,

Brendan
Don't think i'll be getting married just yet but that's good to know.
Does anyone have a draft of a "tenants in common" or "joint tenancy" contract that i could check out?
Cheers Guys
OCJ
 
From Revenue website


What is the position where the purchase monies are not provided entirely by the first time buyer?


To qualify for the relief the entirety of the purchase monies, including any borrowings, must be provided by the first time buyer. Any person, who provides part of the purchase monies or who is a party to any borrowings relating to such purchase, is also regarded as a buyer of the house and the relief will not be available unless that other person is also a first time buyer. …
The basis for this treatment is that, in such circumstances, the house is held for the person providing the monies used in the purchase of the house by way of a resulting trust presumed in favour of that person. This treatment applies whether or not all the parties providing the purchase monies, or all the parties to any borrowings, are actually named in the deed of transfer.
Notwithstanding this treatment, to take account of particular situations, Revenue is prepared to accept that a child, who is a first time buyer, will not be precluded from claiming first time buyer relief where a parent acts as a co-mortgagor in the following circumstances:
• The transfer of the house is taken in the name of the child.
• It is the intention of both the child and the parent that the parent is not to take a beneficial interest in the house.
• The parent has been joined into the mortgage solely at the request of the lending institution for the purpose of providing additional security for the monies being advanced for the purchase.
• It is not intended that the parent will be contributing to the repayment of the mortgage in the normal course.
Where the four conditions set out above are satisfied, Revenue will treat the parent as effectively acting in the role of guarantor for the loan.
Consistent with the above approach, Revenue will also be prepared to treat persons other than parents of the first time buyer, who satisfy similar conditions to those set out above, as effectively acting in the role of guarantor for the loan. Their involvement in that capacity will not be treated by Revenue as precluding a claim to first time buyer relief. In such circumstances the conditions are as follows:
The transfer of the house is taken in the name of the first time buyer.
• It is the intention of both the first time buyer and the other person that the other person is not to take a beneficial interest in the house.
• The other person has been joined into the mortgage solely at the request of the lending institution for the purpose of providing additional security for the monies being advanced for the purchase.
• It is not intended that the other person will be contributing to the repayment of the mortgage in the normal course.
The relief from stamp duty is intended to benefit only genuine first time buyers and Revenue will continue to use our audit programme to ensure that there is no abuse of the relief.


mf
 
Revenue say: "Consistent with the above approach, Revenue will also be prepared to treat persons other than parents of the first time buyer, who satisfy similar conditions to those set out above, as effectively acting in the role of guarantor for the loan. Their involvement in that capacity will not be treated by Revenue as precluding a claim to first time buyer relief. In such circumstances the conditions are as follows:
The transfer of the house is taken in the name of the first time buyer.
• It is the intention of both the first time buyer and the other person that the other person is not to take a beneficial interest in the house.
• The other person has been joined into the mortgage solely at the request of the lending institution for the purpose of providing additional security for the monies being advanced for the purchase.
• It is not intended that the other person will be contributing to the repayment of the mortgage in the normal course."

Can anyone advise the status of the FTB re the gift from a non family member in these circumstances - are they liable to 20% gift tax? Haven't noticed this aspect discussed as yet...thanks
C
 
Just so you know, we got a joint mortgage and the deeds are in my name - the reason we did this was my BF was not a first time buyer - got stamp duty at FTB rate on 2nd home.

We got our solicitor to draft up a legal document, which we both signed, in case we ever split (not married) to ensure bf gets his share etc, and what we would do in that scenario etc. I don't have an electronic copy to hand, but Im sure you could ask your solicitor to draw up legal contract.

We got our mortgage we PTSB.
 
"Can anyone advise the status of the FTB re the gift from a non family member in these circumstances - are they liable to 20% gift tax?"

See Revenue guidlines below. Yes- may be liable for 20% gift tax if gift exceeds thresholds


What is the position in the case of a gift of part of the purchase monies?

Where a first time buyer receives an unconditional gift of monies which are used to purchase a house, he/she will not be precluded from claiming first time buyer relief.


"Just so you know, we got a joint mortgage and the deeds are in my name - the reason we did this was my BF was not a first time buyer - got stamp duty at FTB rate on 2nd home. "


From Revenue

"To qualify for the relief the entirety of the purchase monies, including any borrowings, must be provided by the first time buyer. Any person, who provides part of the purchase monies or who is a party to any borrowings relating to such purchase, is also regarded as a buyer of the house and the relief will not be available unless that other person is also a first time buyer. "

Sulo - you have a tax liability ( non ftb rate of stamp duty) as you availed of ftb relief when BF was not an ftb.

mf
 
so i can still be a first time buyer in the future
Click to expand...
I'm sorry but there have been a few simular questions like this in the past few weeks.
And I just can't help but say are you scamming the system, you want to pay a mortgage but not be put on the deeds but have an agreement drawn up so that in the future you can still be a FTB...

I'm sorry but I see this as being slightly dubious.... If at some point you may possibly sell this house to get the next one - you will benefit from the proceeds - well hopefully - and use that to get another place as a FTB'er....
Any way my 2cents
 
Hi Pinkybear,
I don't see it as scamming the system, but using it to my advantage.
and if there is a "legal" way of doing this i'd have no problem with it.

but i do see what ur saying.:)
 
Like most tax issues, you should consider what will happen when Revenue twig it and look for liability to be paid plus interest and penalties.

You may take the view that Revenue will never find out - that may be - but I suspect that the Revenue gurus occasionally read websites like this and are actively looking at how people choose to deal with/ignore their tax liabilities. It would not be rocket science for Revenue to randomly check stamp duty payments( all linked to PPS numbers) with TRS claims.

And when and if they come knocking, it is no defence to say I did not know - the very act of one name on deeds and two on mortgage, says it all.

mf
 
Lads, a solicitor will draft any document you want (land on the moon etc) - but at the end of the day you are scamming the system. IF you get caught don't come crying to this website. You have been warned.

I think revenue have demonstrated they intend to get good use out of BIG BLUE and will be slowly heading in the direction of any popular tax evasion schemes.

I assume they read AAM btw.
 
You must log in or register to reply here.
Back
Top