Not a Straightforward Mortgage Application

Jimjobjim

Registered User
Messages
12
Hi All

Would be grateful for a steer on the following situation

1. Partner A lives in her Aunts house who is very sick in Nursing Home, along with Partner A is her Partner and their young daughter. They are not married. Aunt has made will leaving house to Partner A

If Partner A’s aunt passes away in next year (She is Terminally Ill) she will have to pay a tax bill of approx 200 k on house, now 3.5 times her salary bring her to approx 160 k and would have savings close to covering entire bill HOWEVER the issue is creche fees, with them being accounted for her mortgage approval drops significantly which means she will not be able to cover tax bill even though she could easily afford 50% creche fees and her mortgage repayments.

As it will be a single mortgage application as it is to pay her own tax bill is there any way that if she got her partner to pay full creche fees from his account which he is happy to do without remuneration from here on out that when she applies for her mortgage she can declare on her application that yes she has a dependent child but does not have a liability for creche fees, meaning she would get the standard 3.5 times her salary ?

Thanks
 

michaelm

Frequent Poster
Messages
1,628
Perhaps, by the time a tax bill transpires, the child will be in pre-school or even in school and creche fees won't be an issue.
 

Palerider

Frequent Poster
Messages
1,349
If the creche fees are being paid by someone else then start doing that now so that they do not appear as outgoings on your bank statement when you get to mortgage application stage.

Your partner who already lives there will acquire rights over the property in due course even though they are not named on the title deeds or paying the mortgage, have you considered that, I note that your post has no mention of your partner joining you on the mortgage.
 

RedOnion

Frequent Poster
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3,045
Are Person A and their partner serious about their relationship? This doesn't have to be a sole application.
 

Jimjobjim

Registered User
Messages
12
Perhaps, by the time a tax bill transpires, the child will be in pre-school or even in school and creche fees won't be an issue.
Y
If the creche fees are being paid by someone else then start doing that now so that they do not appear as outgoings on your bank statement when you get to mortgage application stage.

Your partner who already lives there will acquire rights over the property in due course even though they are not named on the title deeds or paying the mortgage, have you considered that, I note that your post has no mention of your partner joining you on the mortgage.
Thanks for reply, yes the reason that Partner A would go sole is that the bank said it wouldn’t be straightforward if the two go for a loan to pay Partner A’s tax debt on an inheritance just to Partner A as it could be interpreted that partner B is also benefiting from an inheritance which could have tax implications for partner B also, they said it was cleaner if Partner A just goes for it. Although she didn’t push that with them just took their word for it.

Leaving that aside, and just basing it on a sole application Partner A needs to figure out a way to handle creche fees as it makes a huge difference to mortgage eligibility. If she gets her partner to pay full fees from his account from here on and if/when time comes she declares that she has no childcare costs is that the best way to handle it?
 
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Palerider

Frequent Poster
Messages
1,349
Yes, that's it, you won't have crèche fees as your partner pays them from his own account, you will have childcare costs as they have to be cared for and that will be assessed as a normal part of any application.

You are right to plan ahead, the Devil is in the detail.
 

Peanuts20

Registered User
Messages
50
The tax bill implies the house is worth approx €600k-650k. Could she not sell the house, pay the tax bill and them buy another property with the difference?
 
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