Advice on limits

[Leftfield]

Hi all,

I would be grateful if someone could give me a bit of help on this. I own my home and wish to sign it over to my son, the house is worth €360k and I am aware that he would have to pay CGT once it is over €310k.

The house does need a fair bit of work and my son is looking at applying for a mortgage for about €160k. He is in his 40s, in a full time job on approx €46k a year and is debt free. Can he use the house as collateral as soon as it is signed over or is there a waiting period? He will not be selling the home as he does want to live there.

Also are there any limits to the amount on the mortgage, given the house is in his name.

Thanks a mill

 

[RedOnion]

Specifically from a mortgage perspective, it might be easier for him to take out a mortgage for 160k to buy the house from you, and you can gift him the money afterwards. Otherwise he's effectively taking out an equity release for the works, which there's less appetite for among the banks, but it's possible. They might treat similar to a self build mortgage, and look for engineer sign offs for stage payment, etc. He could end up having to borrow at home improvement rates over a shorter term if he can't get mortgage.

Normal central bank limits of 3.5 times income would apply, and he'd need to evidence repayment capacity.

 

[noproblem]

Also are there any limits to the amount on the mortgage, given the house is in his name.

I would imagine it depends on how permanent the lenders think his job is, his marital status, children, health, etc, and his ability to pay it back.