Civil partnership - Partner near 70 & Mortgage

T

TheTuneMan

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Hi Everyone,

I suspect I'm going to be using this forum alot for the next 6 months ;-)

I'm 29 and my Civil partner is 67. We want to deep retrofit our home (which is my partners with no mortgage) to make it more energy/heat efficient.

We applied initially however were refused by Ulster and PTSB because my partner is 3 years away from 70 which is the max term.

I am in a very stable fulltime job for the past 7 years and have been told I can borrow up to 240k however there is this condition it can only be for 3 years because of my partners age.

The house is fully owned by my partner and is freehold (he owns the land too). Its current LPT is valued at 550k. We are only looking to borrow under 200k which is less than half the value of the property.

He is semi retired on a state pension and the figure above is for a mortgage based on my earnings. I was told the mortgage has to be in joint names because we are civil partnered and thus cannot consider an application.

If anyone has any advice it would be very much appreciated.

Many thanks!
 
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There are a couple of things to consider here. First issue is that given your partner's age his income would not be considered as being sustainable beyond 70. However if your income can sustain loan repayments the borrowing could be in joint names with the security of the house being offered by him. You will need to ensure that your own position is properly protected by getting the property transferred to joint names. I'm not sure whether CAT exemptions would apply to a Civil Partner. I suspect not, but a solicitor/accountant will clarify.
In that scenario there is no reason as to why a mortgage application should not be successful. However, if your income does not stand up as a repayment source then it's a non runner!
 
200€ to make a house energy efficent sounds totally over the top? What work needs doing ?
 
@44brendan Thank you for the advice. I do have the payment capacity and was told this.. however it is just the age issue that is standing in the way. AFAIK CAT doesnt apply to civil partners as its treated just the same as a regular marriage. Would a solicitor be the best person to speak to here? or can I ask someone in the likes of the central bank regarding the age issue?

@Bronte: Its a deep retrofit of a 6 bedroom house. ~ 17 windows and a roof.. Heating system upgrade as well as re-plastering each room etc. 200K is ball park.
 
No reason at all as to why age should be an issue. Once you as the earner has ability to continue earning and meeting repayments your partners earnings should not be an issue!!! CB have no function here! Best option is to approach a broker. It would appear that whoever you are speaking with in the banks approached to date are only seeing one side of this proposal. However, you do need to ensure that your position is protected if you borrow money to input to this property!
 
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