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Mortgage advice

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  • 16-09-2008 12:34pm
    #1
    Hannah May
    Closed Accounts Posts: 1 ✭


    Myself and my partner are planning to buy my Mam's house from her.

    The house is worth €350k but we are buying it for €160k for now.
    So the loan to value would only be about 46%.

    I'm a bit confused about what way the banks will lend me the money. Originally i was going to buy a property for €338,000 and get a 92% mortgage for €310,000 and the bank needed proof we had the other 8%.

    If I am getting a 46% mortgage do I need to show the other 54%?
    My Mam would not be looking for a deposit just the full amount at the end.

    Any info would be great?


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    #2
    dats_right
    Registered Users Posts: 1,168 ✭✭✭dats_right


    Because this house is going to be sold for under its market value there is CAT implications (i.e. gift tax). Basically, a child can receive about €520k from a parent without paying any tax, so you should be okay. But your partner is not related to your mother (well I hope not anyway) and could only receive about €26k without paying tax, anything over that is taxed at 20%. You should talk to your solicitor and seek their advice on the best way to proceed.


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