Home deeds related to mortgage?

S

SMcDDB

Guest
Hi,

First time posting but I'm really confused and would seriously appreciate some advice. My boyfriend and I are buying an apartment-we have got mortgage approval in principle but only using his annual income and a property he received as early inheritance which amounts to about half the price of the new apartment. Our broker has now told us that I might not be able to be put on the mortgage at all, as I am not a permanant worker (doing agency whilst I qualify as a solicitor). If I am not on the mortgage does this mean I cannot be on the deeds to the apartment?

If I can't be on the deeds now, how do I get on them in the future but more importantly, how much does it cost? Stamp duty applicable? or Capital Gains Tax? I probably should know this re my legal studies but it's more of the tax issue which I am querying.

Thank you so much anyone who can help.
 
I'm fairly sure your broker is talking through his hat. Your income won't be taken into account, but if your boyfriend is happy for you to be on the mortgage and deeds I don't see why you shouldn't be - and it's the simplest way to manage it without incurring potential tax liabilities.
 
Agree with above - plenty of people co-habiting go on both the mortgage and title deeds. If the primary earner's income is sufficient the lender will underwrite based on this.

I would think if anything, the lender will be pleased to have you (your income) when you qualify, as additional security on the mortgage.
 
Thanks for your replies guys.

The information I did not get into is that I have a past student loan of around 6k (from my Masters in Law) that I am still paying off at 250euro a month. This is what the bank didn't like and why they wanted to remove me as an applicant from the mortgage, thus removing me as a joint owner on the deeds? Remember I am not in permanant employment I work for a legal agency, but I have secured a 6 month contract starting in April, banks/brokers don't seem to care about the future though.

In a related matter, if I am not on the mortgage this means I can't claim first time buyer 8000euro tax relief right-only my boyfriend can?

Sorry for asking so many questions, it's just I've been on hold to many revenue lines and have not been able to secure a straight answer!
 
I think the banks will consider you a liability on the mortgage as you do not have full-time permanent employment and you have a loan re-payment. If assessed jointly ye do not have an additional income which can be assessed but ye will have have an additional expenditure which would reduce the amount available to be borrowed.
I don't think the Bank will agree to having you on the Deeds as you will then have an interest in the property (50% ???) while their security will be compromised as the borrower will not own all the property. I am just surmising here and totally open to correction....
As to having your name on the Deeds in the future. I would think if you ever get married or if you re-mortgage at a time when you do have a reckonable income this would be possible???
 
The outstanding loan would appear to explain exclusion from the mortgage - I agree with Sheena1's read on it, that your being on the mortgage could reduce the total borrowings you'll be eligible for as a couple. However, I think you need sound legal advice on the specific issue of excluding you from the deeds, as any future transfer of part of the property to you, save only (I think) in the case of marriage, could carry tax implications. Likewise, if you, once earning, are contributing to the mortgage without having your name on mortgage and deeds, your position in establishing any right in the property (as you'll be aware, no doubt) in the case of break-up will be difficult and costly to prove.

I can't, frankly, see any way that you can be taken into account for TRS if you aren't on the mortgage or the deeds, so you'll have to work on the basis of only one buyer - unless you can find a lender prepared to be more flexible.

Good luck with it!
 
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