Buying out partner from house

  • Thread starter mover trish
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mover trish

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Hi, I am considering buying my partner out of our house as we are splitting up but I wonder could anyone give me some simple answers to the following:

Current mortgage is 214k (purchase price of 235) and the current house value is 300k, gross profit of 65k - Can I just give him 30k approx and change the name on the deeds/mortgage?

We had to pay stamp duty even though we were first time buyers as the exemption came in the budget after we bough - will i have to pay more stamp duty even though it's my 'family home'?

If I do have to pay stamp, can i release equity from the house value increase to cover this?

Would appreciate any assistance or direction you can give me!

thanks

Trish
 
Has your partner been paying half the mortgage to date. Would you not have to give your partner half the difference between mortgage amount outstanding currently (Eur214K) and valuation (Eur300K),rather than purchase price, if so?
 
If you both put it up for sale and split the profit, what would it be? That's the fair amount to pay your ex-partner, so I suppose it is the valuation minus the outstanding mortgage. Get three estate agents round to value it and take the average.

Sorry but I'm no help on the stamp duty issue. Good luck with it.
 
I'd suggest you check the inland revenue site about the stamp duty [broken link removed] . I think in this situation you can still be treated as a first time buyer if you haven't purchased another house or a share in another house. I think the whole value would still have to be less than the stamp duty limits.
 
No you will not have to pay stamp duty. I am certain of this. This is because the combined cost of the house to you, namely the first half you purchased with him and the second half that you are going to purchase from him is less than 317,500.

There is no point in checking the Inland Revenue website as we have not been part of the United Kingdom for more than 80 years. You may want to check the Irish Revenue website however.
 
From www.revenue.ie;

"What is the position where a person, who had obtained first time buyer relief on the joint purchase of a house with another first time buyer, subsequently acquires the other joint owners interest in the house?

A person who obtained first time buyer relief on the purchase of an interest in a house would not be precluded from obtaining first time buyer relief on a subsequent purchase of another interest in the same house provided that person has not purchased another house or part of another house in the intervening period."

You can not however just take over the existing mortgage as your former partner will need to be removed from the deeds and the mortgage and you will, presumably, need to apply for a larger mortgage in order to buy him out so you should shop around for the best deal currently available to you.

Sarah

www.rea.ie
 
Ok Art, very clever. Slip of the key there but i did give the right link, didn't I?
 
Thanks everyone, will take everything on board!
 
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