Am I a first time buyer?

Liberty__Belle

I recently got married and my wife owns a house which she rents out.

If I apply for a mortgage on my own for our family home, am I considered a first time buyer?

And what if she gets involved in the application process - does that invalidate the first time buyer status entirely?

Thanks for your help.

The_Conductor

Short and simple answer, no, you're not a first time buyer.
If you become legally separated or divorced- then, yes, you could be a first time buyer.

This explains all: http://www.revenue.ie/en/tax/stamp-duty/certificates/first-time-buyer.html

Liberty__Belle

Thank you smaccarrick. Checked that link and it is helpful.

However, it refers to a person who invididually or jointly purchased a house.

My wife bought the house before I met her so I did not jointly purchase it.

So in my opinion I am still meeting the definition of a FTB, no?

Snakeblood

Liberty__Belle wrote: »

Thank you smaccarrick. Checked that link and it is helpful.

However, it refers to a person who invididually or jointly purchased a house.

My wife bought the house before I met her so I did not jointly purchase it.

So in my opinion I am still meeting the definition of a FTB, no?

I think it's that if you are partnered with someone that has bought a house, you lose the status, no matter when they bought their property. I bought an apartment before meeting my partner, she's lost her first time buyer status as a result.

Liberty__Belle

Thanks Snakeblood.

That's annoying.

But helpful.

ResearchWill

This thread got me thinking. The constitution gives a special status to marriage. If revenue treat a single person better than a married person is that constitutional. Of course this thought will need much more thought, there may even be a case on point. I'm just putting it out there.

minikin

In same position, g.f. bought her house years before meeting me.
Would have thought you would get 50% of the ftb relief but no, the revenue don't have the ability to do difficult sums... hard things like using calculators should have been a condition of the Croke Park Agreement... it's a disgrace Joe!

Liberty__Belle

Just so I am absolutely clear - even if I apply on my own for a house and leave her out of the equation - I still lose my ftb status?

We haven;t left in our marriage registration form yet so perhaps I should get to the bank now before officially registering it.

How do they know anyway?

mrs vimes

For what purpose do you want to be considered a first time buyer? If it's stamp duty then it doesn't really matter since there is no difference since the last budget. In any cases, for stamp duty purposes to be a first time buyer, all parties to the purchase had to be first time buyers.

However, I assume you mean for mortgage interest relief. In this case it is possible for one party to the purchase to be a first time buyer even if the other party is not.

What happens is that the amount of interest each pays is treated separately and the appropriate tax relief given. I think they assume you are paying half the interest each but if this is not the case then you should advise accordingly.

Some of them even have calculators to work it all out

Liberty__Belle

Thanks Vimes. I am becomming more hopeful.

I am interested in the stam[p duty AND the mortgage interest relief.

with regard to interest relief, if it suits financially, I will pay back the entire sum monthly to avail of the higher tax relief. We can always organise something privately between us.

Now I feel like I am on to something.

(btw, using the wife's login, hence the effeminate name - I just noticed it)

mrs vimes

Since the 2011 budget, first time buyers are no longer exempt from Stamp Duty so it makes no difference whether you are considered to be a first time buyer or not.

The only thing it affects is your trs rate and ceiling.

It is possible that your mortgage bank has different rates or offers for first time buyers, but they are free to set their own rules as to the definition.

ted1

Getting a mortgage will be harder as they take her property into consideration. Even if you are solely financing the new place.