Can mortgage & deed names be different?

K

kaza

Registered User
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Hi,
My partner and I have gone sale agreed on a property (that has a side garden with planning permission approved for another house). Basically, we have decided to buy this house with my sister and her husband. They will take the site and we will take the house.
So, we need to buy in all four names and want the four names initially on the deeds. My sister has the money required for the site purchase.
So my partner and I want to get a mortgage for our share (minus our deposit of course) in our two names. But we need to have four names on the deeds (we will then split these ourselves after the buy - we have all the legals for this part organised with our solicitor).
Has anyone tried to get a mortgage with additional people listed on the deeds that are not on the mortgage? The mortgage will only be for approx. 2/3 of the value (The % we will own). One bank has already said to us they will not do it.
Any advice is much appreciated.
Regards,
Kaza
 
He has said that the bank should be ok with it once my sister and her husband agree to sign a statement saying they are willing to allow the banks to hold the deeds. However, the bank that we have our mortgage approval for (as we attained this before house searching) has said no to the four names on the deeds and 2 on mortgage.
 
Unless you split the title before you buy all four names will need to be on the mortgage. The reason being is that if you and your husband defaulted on the mortgage the lender can not reposses when their are other people claiming an interest in the property.

Sarah

www.rea.ie
 
I though by spliting the deeds when buying this would impact the vendor, i.e. it would be like they are selling two properties and hence would be liable for Capital Gains on one? Do you have any info on how to split the deeds when buying?
Thanks :)
 
I think that maybe you can get the contract assignable or your solicetor can buy "In Trust".
I would be afraid that it will be seen as 2 seperate deals by the revenue. The 4 of you will buy and then you will sell your share of the site to them and they will sell their half of the house to you. This could lead to double stamp duty.
 
We are currently trying to buy it together - we are liable for SD on the initial purchase and then when we split the deeds we are liable for a small amount of stamp duty - approx €6000 - the Capitial Gift Tax is fine because we are under the threshold.
Our main problem is the initial purhcase - it seems our only option is to apply for a mortgage in all four names and then two of us re-apply for a mortgage on our own when the deeds are split.
It would be great of we could split the deeds during the initial purchase - I am going to contact the Registry of Deeds this morning and see can I get and info from them.
 
kaza said:
the Capitial Gift Tax is fine because we are under the threshold.
Click to expand...
Consider that even if you are under the threshold you are using up your exemption for the future and you can not get it back, so it should be avoided if possible.
 
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