how to change mortgage name over

D

delightful98

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Hi there,

my brother has a house that I have paid mortgage on since day one, however we are now looking to put this mortgage in myself and my wifes name and am wondering what is the normal way to go about this. The house is in his and my dads name as it was supposed to be an investment but I ended up renting it long term and settling down and with such a small amount left (90k) on mortgage we are looking to take it over.

Any advice would be great
 
How did you get a mortgage in your name on a property that you don't own? Are you sure that you have the facts straight there?

You'll need to contact your lender to ask them what their process is for adding another person to the mortgage loan.
 
Can't actually change the names on the existing mortgage as such, you will need to apply for a new mortgage in name of you and your wife and clear existing mortgage then with that. I'm assuming you are not looking to add both your names to existing mortgage while keeping your dad and brother on it also, if just to be in 2 names then it's new mortgage territory.

More to it than that too, if I understand correctly then you are technically buying the house off them and they are selling it to you at reduced price, need some tax advice as well.
 
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I presume your brother and father legally own the house.

Are you looking to get a mortgage for the house, or change the ownership to you ? Two very different things
 
The fact that you have paid rent/mortgage is irrelevant.

Brother and Father own a house.
Brother and Father have a mortgage of €90k.

Say the house is worth €300k

1) They will sell the house to you for €300k
2) You will need a deposit of €30k and a mortgage of €270k
3) You pay them €300k and they repay the loan.

If they agree to sell the house to you for €90k it will be very messy.
1) Brother and father sell a house worth €300k for €90k to Brother 2 (it's simpler if it's to Brother 2 and not his wife)
2) Brother 2 will be getting a gift of €210k and this will be subject to Capital Acquisitions Tax.
3) The gift of €105k from the dad will be below the Threshold of gifs from father to son so no CAT payable
4) The gift of €105k from Brother to brother will be €70k in excess of the Class B threshold, so gift tax of about 33% or €22k will be payable.
5) Brother 2 will have to get a new mortgage of €90k from any lender - not necessarily the existing lender, but they might oblige.

Capital Gains Tax
As Brother and father are selling an investment, if it has increased in value, they will be subject to CGT on any gain in value since they bought it.
For example, if they bought it for €200k and it's now worth €300k, they will have to pay about €33k CGT.

Brendan
 
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