New Build in Dub

[David]

here goes...

I am a joint owner of a three bed semi in D15 (well €5k-€10k in NE but possibly set to leave this bracket soon?) . This home was bought with an ex partner who has not contributed towards the mortgage since shortly after the purchase in 2008. I have serviced for the mortgage alone for the term to date, save for three missed payments circa summer 2013. Full compliance with the bank thereafter and arrears consolidated following the bank's directions.

I have been gifted a site in D13 with full planning permission for a four bed detached house. The site is valued somewhere between €60k- €90k perhaps. I am married with one dependant but this site has been gifted to me alone in order to avoid incurring CGT etc.

Civil servant with a regular income in the region of €55k-€60k pa. with scope for overtime and extra earnings. Earned €85k last year and approx €50k to date this year. Wife is also a civil servant with similar basic income. I have savings of €35-€40k. Small loan in the region of €4K. Wife has loans in region of €7k.

The build cost is estimated at €170k-€180k plus misc fees of €15k and including perhaps €10k of NE carry over I'm all in for €200k approx.

Looking for advice regarding loans-
1. How much of an impact will my missed payments in 2013 have?
2. Can a joint loan be sought but still maintain the property in my name alone?
3. Do cash back offers apply to the type of loans I'd be seeking?
4. What is the wisest way to deal with other loans before applying for mortgage? Should we use savings to clear some of the debt?

Any advice welcome

Regards

 

[Brendan Burgess]

I am a joint owner of a three bed semi in D15 (well €5k-€10k in NE but possibly set to leave this bracket soon?) . This home was bought with an ex partner who has not contributed towards the mortgage since shortly after the purchase in 2008.

Have you a formal legal agreement with your ex? Otherwise, she will want her share in the equity when you go to sell it. She does own half of it, despite the fact that you pay the mortgage in full.

If you have been living in it, then you have got all the benefit, so you haven't much to lose.

If it's not on a tracker, you should sell it. Lenders may be reluctant to lend to you if you have an existing large mortgage.

If it's on tracker, you should probably keep it, but your ex could claim half the profits.

Brendan

 

[David]

Thanks Brendan,

I'm kind of reading off the same page as you- it would pain me to hand over a share of any "profit" made from the sale so I'm trying to break even and run.

Regarding the missed mortgage payments in 2013, do you see that having a big impact on my ability to borrow?

Thanks

 

[Brendan Burgess]

Have you checked your ICB record?

If it's there, then it takes 5 years to disappear so they will be gone next year. When do you need to borrow?

But the likes of Pepper will lend to you anyway at slightly higher rates.

Brendan