PPR - Mortgage & stamp duty query

[momomo]

If you buy a house in a new build as your ppr (not first time buyer)but have a parent go on the mortgage and the deeds so you can get approval will this effect you having to pay stamp duty as it will not be their ppr?

 

[ClubMan]

You might want to read these Revenue press releases:

[broken link removed]
[broken link removed]

 

[momomo]

Thanks for those links clubman
If it is a new built property and owner occupiers dont have to pay stamp duty, if one of the people on the mortgage application will not be living in the property, what way does the stamp duty work then?

 

[Dreamerb]

Thanks for those links clubman
If it is a new built property and owner occupiers dont have to pay stamp duty, if one of the people on the mortgage application will not be living in the property, what way does the stamp duty work then?

Question: does your parent have to go on the deeds as well as the mortgage? This may not be a requirement of the lender, and it would substantially simplify the situation if they could be on the mortgage only. And is it an option to have the parent as a guarantor, rather than jointly on the mortgage?

As far as I know, if one of the property owners named in the deeds is not resident, the house will be classed as an investment property, and you will lose both the stamp duty exemption and very probably any mortgage interest relief as well.

As with all of these things, you should contact Revenue if you can't find a definitive answer on their website.

 

[momomo]

Thanks for your reply dreamerb

No the parent would have to be on the mortgage rather then as a guarantor.
They would not have to be on the deeds though.
So from your understanding as long as they are not on the deeds it shouldnt be classed as an investment property and i would stil be able to claim mortgage interet relief?

 

[Dreamerb]

So from your understanding as long as they are not on the deeds it shouldnt be classed as an investment property and i would stil be able to claim mortgage interet relief?

I'm not sure about that. My understanding is that you'll be entitled to the owner occupier stamp duty exemption once your parent is not on the deeds, because at that point it's clear that there's only one owner occupier; the mortgage interest relief issue may be more complex. I think you'll be ok, but would strongly advise discussing with the Revenue people (who, in my experience to date, are very helpful and tend not to bite!).