How to claim Mortgage Interest Relief.

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ChunkyLover

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Previously I used to live in my own apartment and now I moved into a new home.

I kept the apartment for sale but not closed yet. I am still getting Mortgage Interest Relief on my previous home but nothing on my new home.

Pls can anyone help me to know, what I should do to claim the Mortgage Interest Relief on my new home.

Best Regards
Chunky ...
 
[broken link removed]

You need to stop claiming owner occupier mortgage interest relief on the apartment and start claiming it on the new home.
 
Hi Clubman,

Thanks for the reply. Very helpful.

How should I stop claiming owner occupier mortgage interest relief on the apartment?

Best Regards
Chunky ...
 
If the TRS1 form does not cover this then you need to contact Revenue and/or your lender to arrange for discontinuance of the TRS on the former PPR.
 
Yeah good idea, I will get in touch with my Mortgage Lender.

By the by, will I get the Interest Tax Relief retrospectively from Nov 06, that is when I actually made my first repayment of loan?

Regards
Chunky ...
 
ChunkyLover said:
Yeah good idea, I will get in touch with my Mortgage Lender.
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And Revenue!
By the by, will I get the Interest Tax Relief retrospectively from Nov 06, that is when I actually made my first repayment of loan?
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Maybe but if you do then you will need to pay back TRS that you received on the former PPR since then since you can't claim TRS on more than one property.
 
Also, bear in mind that once you inform your lender they may revert your mortgage on your apartment to an 'Investor' mortgage, possibly at a higher rate. And when you inform Revenue, they may claw back stamp duty (if you bought the apartment within the last 5 years and were exempt as a FTB).

There may have a period of time where you will be allowed to organise the sale of your apartment but the longer it goes on the greater the risk of incurring these extra costs.

Sorry I can't give any more info. It's just something I came across recently when considering something similar. Someone with more knowledge on these aspects may be able to clear this up!
 
ButtermilkJa said:
And when you inform Revenue, they may claw back stamp duty (if you bought the apartment within the last 5 years and were exempt as a FTB).
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Only if the property is rented out within the 5 year timeframe. Not if it is left idle.
There may have a period of time where you will be allowed to organise the sale of your apartment but the longer it goes on the greater the risk of incurring these extra costs.
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12 months from the time of vacating it before CGT on some portion of any resale gain becomes an issue.
 
Thnx ButtermilkJa/Clubman.

The apt is currently idle since Nov 06, you mean I have to pay stamp duty, if I cant sell it by Nov 07 (12 months period gets expired, I guess). If so home much will it be? I bought the house in the year 2004 for about €230,000 and lived in the house until Nov 06

Best Regards
Chunky ...
 
ChunkyLover said:
The apt is currently idle since Nov 06
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So if you want to claim TRS on the new home from this date then any TRS that you got since then will need to be repaid or deducted.
you mean I have to pay stamp duty, if I cant sell it by Nov 07 (12 months period gets expired, I guess).
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No - you will be liable for SD only if you rent the property out within 5 years of purchase as an owner occupier.
 
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