FTB - Sole Mortgage, Joint Ownership?

[lilliputt]

Hi there
My girlfriend and I are planning to buy a house next year.
She is already a home owner, I am FTB.
Is it possible for me to have the mortgage in my name but for us both to be on the deeds/ownership of the house and to still avail of FTB/no stamp duty?
I have been told that a certain amount of time must pass before anyone other than the mortgage holder can be put on the deeds.
Thanks
Lilliputt

 

[Munsterdude]

Re: FTB - Sole Mortgage, Joint Ownership ???

Hi Lilliputt
you have is slightly the wrong way round - as a first time buyer you want to be on the deeds only. But for repayment/assessment purposes you want to have both of you on the mortgage. This is do-able with several lenders, as long as you both are assessed for tax on a individual basis.

 

[lilliputt]

Re: FTB - Sole Mortgage, Joint Ownership ???

Hi Lilliputt
you have is slightly the wrong way round - as a first time buyer you want to be on the deeds only. But for repayment/assessment purposes you want to have both of you on the mortgage. This is do-able with several lenders, as long as you both are assessed for tax on a individual basis.

Eh, well kind of.. as we are a same sex couple we basically want to a) to avail of FTB but also b) to both own the house. I suppose what I'm asking is how long is it before she can go on the deeds?

 

[mf1]

Re: FTB - Sole Mortgage, Joint Ownership ???

You really really really need independent, you-specific advice for this. This is a classic case of what looks obvious on first glance looking considerably different on second.

Start by googling first time buyers with Google, specifically as regarsd Revenue - this should give you a very good idea of where you can be considered a first time buyer and where not - i.e. where someone esle is contributing to the mortgage.

Look through earlier posts for advice also on the pros and cons of one party NOT being on the deeds and the implications for that non owning person if the couple split. If its a married couple, legislation is in place but in your circumstances, you are not afforded those protections.

Finally, google "dwelling house relief" again with specific reference to Revenue for information on Tax exemptions on transfers of properties where transferee has lived in the property.

mf

 

[dewdrop]

at minimum the owner/owners of a property must execute the mortgage..otherwise the lender could not take action against the owners

 

[lilliputt]

at minimum the owner/owners of a property must execute the mortgage..otherwise the lender could not take action against the owners

??? Execution of the mortgage is not an issue, ownership combined with availing of FTB status are my concerns.

 

[mf1]

I think dewdrop was just making the point that all persons named on title would also have to be named on and sign the mortgage - if lender wants to recover possession at any future time and one owner has not mortgaged their interest, it would be difficult to recover so lenders won't do this.

mf

 

[mf1]

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

 

[Trustmeh]

there are many many threads of heterosexual couples trying to do just what you are doing. they all got the same answer you are getting. pay the tax.

There is no diff in your situation.

I just had this same conversation in the canteen after hearing a co worker give another advice detailing how they could "avoid" stamp duty by jigging around with the truth when going to a solicitor.

I really really cant wait untill Revenue starts cracking down.

 

[lilliputt]

there are many many threads of heterosexual couples trying to do just what you are doing. they all got the same answer you are getting. pay the tax.

There is no diff in your situation.

I just had this same conversation in the canteen after hearing a co worker give another advice detailing how they could "avoid" stamp duty by jigging around with the truth when going to a solicitor.

I really really cant wait untill Revenue starts cracking down.

Cheers mate, you're a ray of sunshine!!