Buying a house 2012

Bigcheeze

0325422 wrote: »

Kind of similar enough situation in that I have mortgage drawn down.. I got my mortgage from credit union as its only small. Anyway I have the cheque here made out to solicitor and Iv had it since last Saturday. Contracts are signed 3 weeks ago and was just waiting on the money.. My problem is solicitors office has been closed for Xmas and not open until 2nd of January. My repayments don't start until January. Date on cheque is 22nd of December.. Would I qualify for Mir ?

Presumably it's a draft from the credit union and not a cheque?

If its the former then yes, interest is accruing on the mortgage since 22 December and it qualifies for Mir.

0325422

Bigcheeze wrote: »

Presumably it's a draft from the credit union and not a cheque?

If its the former then yes, interest is accruing on the mortgage since 22 December and it qualifies for Mir.

Ya sorry a draft is what I meant.. I hope your right. That makes sense though

beaner88

What banks are lending at the moment. I'm looking to secure about 80K.

gambithh

0325422 wrote: »

Kind of similar enough situation in that I have mortgage drawn down.. I got my mortgage from credit union as its only small. Anyway I have the cheque here made out to solicitor and Iv had it since last Saturday. Contracts are signed 3 weeks ago and was just waiting on the money.. My problem is solicitors office has been closed for Xmas and not open until 2nd of January. My repayments don't start until January. Date on cheque is 22nd of December.. Would I qualify for Mir ?

i wasnt aware the credit union did mortgages.is it a personal loan you have by any chance?



@ beaner88 only banks lending are aib and boi and possibly ulster bank.stay well clear of permanent tsb and others.

ted1

beaner88 wrote: »

What banks are lending at the moment. I'm looking to secure about 80K.

most of them

efb

I don't think a credit union loan qualifies Contact revenue on that one

ted1

efb wrote: »

I don't think a credit union loan qualifies Contact revenue on that one

I didn't think they could offer mortgages

0325422

ted1 wrote: »

I didn't think they could offer mortgages

They have the first legal charge on it so it's a mortgage albeit a small one. If it's a mortgage then I'd be guessing I'd be entitled to Mir...

efb

0325422 wrote: »

They have the first legal charge on it so it's a mortgage albeit a small one. If it's a mortgage then I'd be guessing I'd be entitled to Mir...

Contact revenue

ted1

0325422 wrote: »

They have the first legal charge on it so it's a mortgage albeit a small one. If it's a mortgage then I'd be guessing I'd be entitled to Mir...

Is the issuing of mortgages not the differences between a bank and credit union

cookie1977

efb wrote: »

I don't think a credit union loan qualifies Contact revenue on that one

Credit union loans that are used for home improvements qualify for MIR so if they agreed to give you a loan to purchase a home then yes it should qualify

efb

cookie1977 wrote: »

Credit union loans that are used for home improvements qualify for MIR so if they agreed to give you a loan to purchase a home then yes it should qualify

That's home improvement loan relief not MIR

efb

beaner88 wrote: »

What banks are lending at the moment. I'm looking to secure about 80K.

You need min 8,000 deposit for. House 12,000 for an apt a history of saving an show the ability to repay the loan

cookie1977

efb wrote: »

That's home improvement loan relief not MIR

Mortgage interest relief can be applied to home improvement loan too. Can't see why credit union loan for mortgage wouldn't qualify for MIR also.

thehamo

Bit late here but after a very stressful day we got our keys last Friday week. A tad bitter sweet saying that. We now have a house sitting empty and no body willing to do any work until after Christmas Theres no way we can move in so we just have to play the waiting game. Have a builder coming Wednesday lunch time so hopefully that will get the ball rolling!!

drunkmonkey

0325422 wrote: »

They have the first legal charge on it so it's a mortgage albeit a small one. If it's a mortgage then I'd be guessing I'd be entitled to Mir...

Unless the seller has received the funds not just sitting in your solicitors account it doesn't qualify for MIR, I have that in writing from the revenue. We had to stop drawdown of the loan at the last minute due to this. If it was enough to have it drawdown we would have.

Bigcheeze

drunkmonkey wrote: »

Unless the seller has received the funds not just sitting in your solicitors account it doesn't qualify for MIR, I have that in writing from the revenue. We had to stop drawdown of the loan at the last minute due to this. If it was enough to have it drawdown we would have.

Hmmm not sure if that was a good idea. My experience with Revenue is that it's quite difficult to find someone who knows what they're talking about when it comes to quite technical issues.

It's quite easy to get them to give you very safe opinions, or for them to tell you what you can't do...... which may or may not actually reflect tax legislation.

Once that mortgage was accruing interest in 2012, it would have got MIR. Revenue don't look any deeper than that.

drunkmonkey

Bigcheeze wrote: »

Once that mortgage was accruing interest in 2012, it would have got MIR. Revenue don't look any deeper than that.

I called first and was told what you stated just there is correct, I then sent an email to confirm what I was told on the phone and that's when the rules changed. My solicitor then contacted the revenue and they stated that the money has to have reached the seller in 2012. It's not acceptable to have the money just drawn down and gathering interest.

Lenny

Just applied for the MIR just there too.
I see they added on an extra page on the application page
"date mortgage taken out"

I was/am in the same situation as your monkey, revenue had told me 3 times(on phone) on the phone that taking the mortgage out was sufficient, which it was at the start, but then the budget came out and there was a loophole of people getting MIR & not having to pay property tax for 3 years..
I had emailed revenue to get it in writing that the mortgage was enough, but they had got back to say that me taking the money out and having it in my solicitors account was not succulent enough.

My solictor had dealt with revenue directly, and had got clarification that if we transferred the money to the vendors solcitor & closed on THAT house our money was used for the purchase the day we gave our money over(december)

We are due to move into the new home on monday coming

Bigcheeze

Lenny wrote: »

Just applied for the MIR just there too.
I see they added on an extra page on the application page
"date mortgage taken out"

I was/am in the same situation as your monkey, revenue had told me 3 times(on phone) on the phone that taking the mortgage out was sufficient, which it was at the start, but then the budget came out and there was a loophole of people getting MIR & not having to pay property tax for 3 years..
I had emailed revenue to get it in writing that the mortgage was enough, but they had got back to say that me taking the money out and having it in my solicitors account was not succulent enough.

My solictor had dealt with revenue directly, and had got clarification that if we transferred the money to the vendors solcitor & closed on THAT house our money was used for the purchase the day we gave our money over(december)

We are due to move into the new home on monday coming

Revenue are the last people I would be asking for personal tax advice, not that you should be asking on Boards either

Revenue can't make up the rules as they go along. They are there to implement the Tax Acts and Finance Act which was passed in March so it is impossible for a change of position to have occurred in the last few weeks. I suspect a few people in Revenue are concerned about the MIR & property tax double dip.

These are the interpretation notes published by Revenue to guide tax professionals. http://www.revenue.ie/en/practitioner/law/notes-for-guidance/tca/part08.pdf

Read Section 244 which covers mortgage interest relief. Nowhere does it mention closing the sale of the property. Everything in the legislation is driven by the date the loan was taken out for the purpose of buying the home.

beaner88

Can adybody give me a figure for the cost in buying, I can't find it in this thread although I'm sure it is there somewhere.

I'm thinking legal fees and other items.

orlaanne

After the 10% deposit and 1% stamp duty I paid about 2700 for solicitor, survey, valuer and home insurance. The bank will also look to see if you have money for fit out, our place was nearly ready to walk into but we spent about 3.5k on furniture, some appliances, various other bits and a fill of oil.

engineermike

beaner88 wrote: »

Can adybody give me a figure for the cost in buying, I can't find it in this thread although I'm sure it is there somewhere.

I'm thinking legal fees and other items.

Pre purchase survey costs - depending on location / size / age of property
Approx. 250 - 450 €
i.e - if property is large or old (or has been structurally modified) the price of survey is higher,
If a new small apartment or small house, the lower price area is applicable.

Solicitors fee's can vary, so shopping around is the order of the day, P/m me if you want recommends for Solicitors located around the country - I've dealt with in past.
Rgds,
mike f

Paulspats

Just want to say a huge thank you to everyone who posted on here for their advice and debate, in particular Killers1. I got the keys to my home on Dec 21st, and am over the moon to finally have a place, and also qualify for the added sweetner of MIR. I found that this forum helped me to remain calm, as I was not the only one going through the stress, and it also answered a lot of queries I had. Killers1, you are an absolute credit to your profession, thank you so much for your efforts.

killers1

Paulspats wrote: »

Just want to say a huge thank you to everyone who posted on here for their advice and debate, in particular Killers1. I got the keys to my home on Dec 21st, and am over the moon to finally have a place, and also qualify for the added sweetner of MIR. I found that this forum helped me to remain calm, as I was not the only one going through the stress, and it also answered a lot of queries I had. Killers1, you are an absolute credit to your profession, thank you so much for your efforts.

You're more than welcome and I wish you every happiness in your new home!

pranal

killers1 wrote: »

Without the title deeds you have no contracts. Without the contracts your solicitor won't want to drawdown funds. The good thing for you is that you haven't signed contracts so are free to renegotiate the price downwards to make up for missing out on MIR. If the vendor has any sense they'll agree to a reduced price...

Hi Killer1, Just wanted to say quick thank you.
I just did what you advised and got the price down E5000 from the sale price.initially he didn't accept but came back to us and accepted the offer.

Hopefully we are going to sign the contracts next week.
so, once again a big thank you, for you time and valuable advise

Pranal

killers1

pranal wrote: »

Hi Killer1, Just wanted to say quick thank you.
I just did what you advised and got the price down E5000 from the sale price.initially he didn't accept but came back to us and accepted the offer.

Hopefully we are going to sign the contracts next week.
so, once again a big thank you, for you time and valuable advise

Pranal

Hi Pranal, that's great news, well done! It's €5k better off in your pocket!

efb

Great feeling tonight- home cooked curry and home fire burning, really felt like MY home

Lenny

I'd also like to join into this topic & thanks killers also. got the keys to our home this week.
His advise has/been some of the best advice I had gotten from the internet!
although not my broker,he had been liaising with my solicitor about my case, referring to my case with revenue(I drew down in December,only bought this week) he has been such a gentleman on this forum & will be referring any work colleagues or friends his way I wish him all the best in his future business!

PaddyCar

ok so i moved into my new house before Christmas and i am delighted with is so far. Just wondering what happens next? Is there a land registry process to go through regarding deeds, maps etc???? Should my solicitor be working away on this?