Boston Guinness
Registered User
- Messages
- 16
You can still gift her the house and she gifts or loans you the balance to pay off the CGT.Seems a shame we can't give the house to our daughter but them's the rules I suppose.
Ouch. Do you think you can get a better deal?payment for us now on the house is €3,750.
But in your earlier post you mentioned she could raise a mortgage of 340k?Don't think she can really afford the mortgage on her salary at the moment.
Some compromise will be required here.She's used to living alone and not sure if she wants to rent out a room.
That should be pretty obvious. She couldn't afford the monthly payment of €3750.But in your earlier post you mentioned she could raise a mortgage of 340k?
Your mistake is that you are not comparing apples with apples.However, my question is whether there is any option for me to keep the house and just gift it to my daughter. She can get a mortgage of €340k no problem. As my daughter, I assume she is entitled to the inheritance threshold of €335k? Not sure of the tax implications to be honest. Just seems a shame if I can't give her the house and she continue paying off the mortgage but there are probably rules in place that you can't gift property to your children at below market value
and the suggestion was that OP could look to remortage to a get a better deal (ICS come to mind for buy to let as they will go to age 70 & that might help); and also for offspring to collect the 1100 available tax free under rent a room.That should be pretty obvious. She couldn't afford the monthly payment of €3750.
The OP clearly has only a few years left on the mortgage hence the very high monthly payment. The daughter can afford the monthly payments on a 30-35 year mortgage of €340k
That had not been suggested, only just now.and the suggestions were that OP could look to remortage to a get a better deal
See post #8That had not been suggested, only just now.
There was no suggestion of a 15 year long rent-a-room.But either way, it would be an incredibly foolish thing for the daughter to do for several reasons.
Firstly they would have no ownership of the property despite paying €3k/m on someone else's mortgage. The OP cannot gift any percentage of the property until that mortgage is cleared.
Secondly, if they could manage to switch, it would be at rates of ~7%.
Thirdly, rent a room scheme is not for everyone and certainly should not be part of a 15 year plan for affordability. The daughter might want to have a life, get married, have children. They might even already have a partner. It would be even worse for them to be paying a mortgage for their potential FIL with nothing to show for it.
if its left as inheritance is there still CAT?And after all of that, when the OP finally gifts the entire property to the daughter after 15 years, the entire amount is deemed a gift so they would have another hefty CAT bill
Oh there's always room for a bit of creative thinking!If the OP does not have funds to clear the mortgage and CGT, then the reality is the cash gift after the sale of the property is the only option.
I have seen it, no mention of a mortgage restructure to 15 years. And taking a 7% interest rate on a longer term does not constitute a better deal.See post #8
There was no suggestion of a 15 year long rent-a-room.
How else does your €1700/m plan work?? You have literally said it in the same sentence, it's implied.If a remortgage over say 15 years was possible, that would bring the monthly payment to say 2800 (rough calculation), less 1100 and we are looking at 1,700 per month.
Yes, of course. Paying someone else's mortgage does not give you any ownership of the property. The OP would have to gift the entire property which should have risen in value. There will be at least €300k above the CAT threshold.if its left as inheritance is there still CAT?
Terrible advice does not count as creative thinking.Oh there's always room for a bit of creative thinking!
Indeed, but we haven't asked any of those questions; & only the OP can decide on what is applicable.We know nothing about the OP, there could be other children, he could die intestate, he could change his will, he could get remarried.
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