Loss of FTB status

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roytheboyo

Registered User
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Hi all,
My girlfriend (non FTB) and myself (FTB) are considering buying a place together. I have found some info on how we should structure this. Deeds in my name only, separate contract held by her solicitor to state that she is 50% beneficial owner. Mortgage split 50-50 etc.
What benefit will i be losing out on if we buy in my name and thus i loose my FTB status?
Any advice on this situation, things to avoid?
Thanks in advance,
Roytheboyo
 
roytheboyo said:
Hi all,
My girlfriend (non FTB) and myself (FTB) are considering buying a place together. I have found some info on how we should structure this. Deeds in my name only, separate contract held by her solicitor to state that she is 50% beneficial owner. Mortgage split 50-50 etc.
What benefit will i be losing out on if we buy in my name and thus i loose my FTB status?
Any advice on this situation, things to avoid?
Thanks in advance,
Roytheboyo
Click to expand...

none that i know of... sounds like your solicitor(s) have it in hand...
 
We havent contacted solicitors yet, but i have a fair handle on that side. Just looking for things i may have overlooked that would be glaringly obvious to someone who has done this before.
Basically what are the disadvantages.
 
Are you going to apply for the mortgage on your own?

I think most banks insist that those names on the mortgage are also named on the deeds.
 
Im not sure about that, i would probably be able to get a sufficient mortgage on my own, but it may be necessary to have both names on it. My girlfriend is going to sell her house before we buy this new one.
 
"I have found some info on how we should structure this. Deeds in my name only, separate contract held by her solicitor to state that she is 50% beneficial owner. Mortgage split 50-50 etc."

I had asked about this before and to me it does not and did not compute. This is a quote from latest Law Society Gazette - its a Law Society briefing as to acceptable practice and ftb f.a.q's.

Question

What is the position where the purchase monies are not provided entirely by the ftb?

Answer

To qualify for the relief ( i.e. get lower rate of duty) all of the purchase monies including any borrowings must be provided by the f.t.b. Any person who provides part of the purchase monies or who is a party to any borrowings relating to such purchase is also regarded as a purchaser and the relief will not be available unless they also are ftbs.
Why? Because the house is held for the person providing the monies used in the purchase by way of " a resulting trust" in favour of that person. This treatment applies whether or not all the parties providing the purchase monies or a party to the borrowings are actually named on the Deeds.
Click to expand...
I suspect that this is in response to increased and similar queries to the Law Society regarding the question asked in this post.

It is worrying - but I don't know just how many people have utilised the process and whether they could face a clawback in the future.

Food for thought.

mf
 
Last edited by a moderator:
The very structure you talk about was highlighted by the Minister fof Finance with the great Pat Kenny.

Revenue, as usual, have their own interesting (devious) way of looking at it.

Your structure will fail, if you use any of the proceeds of the non FTB in purchase of house.

Property in your name. Loan 50/50.

Also : If anybody from overseas ever even owned a shed, they will find that they are also not FTB.

Got to hand it to the Revenue for the most wicked structuring on this one.
 
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