is it wise to marry?

C

ciano6

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If the mod wants to move this to another section, please do.
Here's our story:
Me: I have a €190,000 mortgage on my house that was valued at €400,000 last year. Maybe closer to €320,000 now looking at sales in neighbourhood.
Partner: Sold her house October 06, and has since had the €300,000+ she made in deposit accounts. (a wise move on our parts?) She had intended to buy within months but has ended up living with me since although all of her post etc is going to her parents house.

Anyway, we want to get married but are not sure about the tax situation as regards her buying a new place before I sell mine. For example, if she bought a house before (or after) marriage, and I sold mine (subsequently), would I be able to put any money I might make towards offsetting her/our mortgage.

Basically, what we want is one property, no more, with a small mortgage. And we don't want large amounts of money sitting in the bank doing nothing while we live in my house which isn't ideal for a family anyway.

One final complicating factor (minor I imagine) is that I have five-year fixed mortgage at the moment which is finished April 09.
Can anyone help or point us in the right direction. We are currently on a year overseas so cannot go to a solicitor.
THANKYOU,
Cian
 
There tends to be a couple of grand penalty, depending on the lender for a fixed rate breakage.
 
If she pays €300k off your mortgage now, I suppose you could be considered to be getting a gift of around €15,000 per annum. So it could cost you €2,000 a year in CAT. How much interest would you save?

If you were married, then there would be no gift tax.

The key thing is that you must sign an agreement if she lends you money towards your house. Does she own part of the house and does she share in the loss or the gain?

You can buy the final house together whether you are married or not.

Brendan
 
Is there a CGT issue here, given that she sold her house over 12 months ago and hasn't bought one since? Not sure what the exact rules are?
 
outspann said:
Is there a CGT issue here, given that she sold her house over 12 months ago and hasn't bought one since? Not sure what the exact rules are?
Click to expand...
If it was her PPR there is no capital gains liability.


Edit: Post crossed with TallPaul
 
A married couple can transfer any amount of cash and property between each other without any gift tax or stamp duty implications.
 
I think it is relatively straight forward for you both to purchase another property and have it in joint names with a joint mortgage. You would then pay a lump sum off that joint mortgage when you have the proceeds of your sale. For this reason do not go for any type of fixed rate on new property.

You would have to have your house placed on the market and sold within the year so that complications do not arise over your PPR.
 
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