Does site have to be in both names to get a mortgage?

Glenman

My fiancee and I have have submitted a planning application to build a house on a site which was gifted to us by her father, the site is still in his name. We had meeting with BOI & AIB about mortgage application. We are getting mixed messages from both regarding the above question. BOI said that the site definitely needs to be in both names or in the process before they give any draw-downs on the mortgage. The lady in AIB said that this was not a stipulation for them (the site didn't have to be in both names). I would have to pay tax on the value of the site if we were to put it in both our names. We were planning to put in in my fiancee's name first and then change it to both our names after we were married to avoid the tax. Does anyone have any experience with this situation? Feedback would be much appreciated. Thanks.

muffler

From my experience if the mortgage is in joint names then the site will have to be also.

Quazzie

muffler wrote: »

From my experience if the mortgage is in joint names then the site will have to be also.

Our mortgage is in a joint name but the site was in her name. We were in the same situation as yourself with it being a gift from her dad. We got around it, but I had to see an independent solicitor to the one who done the transfer of deeds, and sign a declaration that basically stated that I had an "interest" in the site and in the ownership of the house due to the mortgage being in both names.

Our mortgage was with neither AIB or BOI so I can't comment on what they do or don't require.

wclarke20

You mentioned that the land is in your fiancee's name. You're correct in saying that you would have to pay tax if it was put into joint names but if you wait untill you're married, you wont have to pay any tax.

I was in the same boat last year and although AIB said it wasnt necessary, when it came to the actual contract (not the approved in principle), they said the site had to be in both names. We signed a contract stating after we got married, we would transfer my wife's name onto the site.

K3v

We had the same situation as you described. In the end we ended up going with AIB due to better interest rate. BoI never could explain why the site had to be in both names.

Don't forget you will still have to pay stamp duty on the site no matter what. It will just be a lot higher if it's in joint names.

Speak to your solicitor and they will inform you of your choices. You will need to employ one in order to draw down the mortgage & transfer the land anyway. No escaping Stamp Duty I am afraid.

RubyGirl

Same boat here, site was transferred as gift from my Dad, got mortgage in first, then got married and then I put my husbands name onto site. Sisters did the same.

blindside88

K3v wrote: »

We had the same situation as you described. In the end we ended up going with AIB due to better interest rate. BoI never could explain why the site had to be in both names.

Don't forget you will still have to pay stamp duty on the site no matter what. It will just be a lot higher if it's in joint names.

Speak to your solicitor and they will inform you of your choices. You will need to employ one in order to draw down the mortgage & transfer the land anyway. No escaping Stamp Duty I am afraid.

Just a quick question. I'm engaged at the minute and my fiancé's dad is giving us a site. Are you saying that the stamp duty would be less if we had it transferred to her name now rather than waiting until we're married and transferring it into joint names?

RubyGirl

If your Fiance's dad is giving ye a site, he will be gifting it to her, as far as i'm aware transferring just into her name and you won't be paying any stamp duty, putting both name's on it you will.

blindside88

RubyGirl wrote: »

If your Fiance's dad is giving ye a site, he will be gifting it to her, as far as i'm aware transferring just into her name and you won't be paying any stamp duty, putting both name's on it you will.

That's great thanks

K3v

RubyGirl wrote: »

If your Fiance's dad is giving ye a site, he will be gifting it to her, as far as i'm aware transferring just into her name and you won't be paying any stamp duty, putting both name's on it you will.

She will still have to pay stamp duty on the site though.

blindside88

K3v wrote: »

She will still have to pay stamp duty on the site though.

I thought that alright, will it be less than we would pay as a married couple?

Quazzie

K3v wrote: »

She will still have to pay stamp duty on the site though.

We didn't. Because the site was a gift it wasn't subject to stamp duty

K3v

Quazzie wrote: »

We didn't. Because the site was a gift it wasn't subject to stamp duty

The days of being exempt from paying stamp duty on a gift are gone.

Innish_Rebel

K3v wrote: »

The days of being exempt from paying stamp duty on a gift are gone.

Yes but the stamp to a family member is less that if it was gifted to both...

K3v

K3v wrote: »

Don't forget you will still have to pay stamp duty on the site no matter what. It will just be a lot higher if it's in joint names.

Innish_Rebel wrote: »

Yes but the stamp to a family member is less that if it was gifted to both...

Exactly

Quazzie

K3v wrote: »

The days of being exempt from paying stamp duty on a gift are gone.

Since when? I'm not disputing it by the way, just curious.

muffler

Quazzie wrote: »

Since when? I'm not disputing it by the way, just curious.

December 2010 according to this info

K3v

December 2010 it all changed.
Explained here: http://www.revenue.ie/en/tax/stamp-duty/property.html

Quazzie

K3v wrote: »

December 2010 it all changed.
Explained here: http://www.revenue.ie/en/tax/stamp-duty/property.html

It looks like I got in just in time so