Urgent clarification needed on mortgage and title deeds

M

momomo

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I hope someone can help with this query.
If you have a parent on your mortgage but NOT on the title deeds of the property are you excempt from stamp duty on a new property
 
You are, as far as I know, likely to be treated as FTB, providing that the parent will not be normally resident in the property. i.e. it should be fine, if it's a mechanism to assist you in the purchase, but obviously not fine if it's a tax-evasion strategy.

mf1 or Vanilla will hopefully be able to give you a more definitive answer - and if all else fails, phone revenue.
 
Revenue is prepared to accept that a child, who is a first time buyer, will not be precluded from claiming first time buyer relief where a parent acts as a co-mortgagor in the following circumstances:
  • The transfer of the house is taken in the name of the child.
  • It is the intention of both the child and the parent that the parent is not to take a beneficial interest in the house.
  • The parent has been joined into the mortgage solely at the request of the lending institution for the purpose of providing additional security for the monies being advanced for the purchase.
  • It is not intended that the parent will be contributing to the repayment of the mortgage in the normal course.
Where the four conditions set out above are satisfied, Revenue will treat the parent as effectively acting in the role of guarantor for the loan.
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From www.revenue.ie

Is that what you wanted to know? Ie are you a first time buyer other wise? Because as an owner occupier buying a new house otherwise it wouldnt make any difference either.
 
Vanilla said:
From www.revenue.ie

Is that what you wanted to know? Ie are you a first time buyer other wise? Because as an owner occupier buying a new house otherwise it wouldnt make any difference either.
Click to expand...

I would be owner occupier. So as far as you can see (i cant get in contact with my own solicitor at the moment) i shouldnt have to pay stampduty
 
Then it makes no difference who is on the mortgage. What matters is the price of the site and building agreement or the square footage etc.
 
A non FTB is exempt from SD on a new property under 125sqm. Whether or not other names on the mortgage but not title deeds impacts the SD treatment depends. E.g. if Revenue decide that the parent is actually a joint beneficial owner (in spite of not being named on the title deeds), is actually helping to service the mortgage and is an investor with respect to this property then the SD treatment may change. Best to get independent, professional advice.
 
Its a new build under 125.
I was just afraid as guarantors and it not being their ppr that i would be caught for stamp duty.
thanks so much for your help. i can breath again
 
momomo said:
Its a new build under 125.
I was just afraid as guarantors and it not being their ppr that i would be caught for stamp duty.
thanks so much for your help. i can breath again
Click to expand...
I would not be so certain and would get independent, professional advice.
 
im waiting to hear back from my solicitor on this at the moment.
is there tax implications if my parent gifted me the money i was short for the mortgage? as in the purchase price, not the mortgage payments
 
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