Complicated one, applying for mortgage to pay tax bill

[Zachary]

Hi all

Take this scenario, person A will inherit a house, to keep house they will have to pay tax bill of 220,000, that seems just about doable for this individual however a problem is childcare costs, personal circumstance would be that person is in a relationship, unmarried with one child, childcare costs 900 per month which is split 50/50 between person A and partner.

Person A will be going for single mortgage application as house is just being left to Person A however will the bank assess this person as having 50% childcare cost as an outgoing or full 100% as it will make a big difference in what amount person A can get in mortgage and if they are assessed as having 100% childcare cost they will not be able to borrow enough to pay tax bill

Is there any way around above, any suggestions/thoughts

Thank you

 

[mathepac]

Is the €450 pcm contribution to childcare costs documented in an agreement or in court papers? If not then I suggest Person A gets written confirmation of the contribution as a matter of urgency.

 

[Zachary]

Is the €450 pcm contribution to childcare costs documented in an agreement or in court papers? If not then I suggest Person A gets written confirmation of the contribution as a matter of urgency.

Hi Matt

Thanks for reply, no, no court order in place, they are together, person A’s partner pays the full 900 per month, Person A then tranfers 450 to partners account each month, I suppose why it’s so important is that it could be the difference between person A keeping house by being able to afford tax bill and being approved sufficient mortgage to cover this bill. Is there a possibility that when Person A applies for mortgage that obviously yes they must declare they have a child however declare that their partner covers the creche cost fully and have partner pay full childcare cost in full from here on out?

They have looked at joint mortgage to pay tax bill however it’s complicated by fact that house will be left to just Person A in a will and don’t know how that would go by both applying for a mortgage to pay person A’s tax liability, bank have advised that it’s simpler if Person who is inheriting house just applies for mortgage to pay tax bill.

Thanks again