mmother in a pickle re morgage and over 65

teddyteddy

so i dont want to go on and on about this . but very briefly. my mom is here in dublin. owns own property. approx value of 2013 is 150 k ish .
saw a home she wants to move to in wexford. for 80k.
she cant get a morgage . as to old.
the rent on the property can make region of 1200 per calender month .
but she cant get equity on the house released.
any ideas on how if she does decide to move. what way to tackle this .?
as shes now put off by moving . but at the same time needs to go away from dublin to a quiter life and not have to scurry around in wexford..
the town she wants to move to , its got all her needs there ......
c.:D

westies4ever

does she owe money on the dublin property? is selling an option?

gordongekko

or rent the Dublin property and rent a place in Wexford. Who knows in 12 months she might be sick of Wexford and want to move back to Dublin.

teddyteddy

shes pretty set in her ways and dosnt want to rent . no cash owed on dublin property.owns outright.
and this house in wexford is reduced from 100 to 80 and fully furnished . and its pretty much all she needs . shes in her late 60s. she has a bus pass and can go to and fro to the big smoke as easy as 123 from there

3DataModem

teddyteddy wrote: »

shes pretty set in her ways and dosnt want to rent . no cash owed on dublin property.owns outright.
and this house in wexford is reduced from 100 to 80 and fully furnished . and its pretty much all she needs . shes in her late 60s. she has a bus pass and can go to and fro to the big smoke as easy as 123 from there

Sell Dublin house. Buy other house. What am I missing here? Seems easy.

gordongekko

Its very difficult to get a loan at the moment. Her age would be a major issue. Unless she can pay cash for the place in Wexford then her most likely options are already mentioned in the previous posts

teddyteddy

3DataModem wrote: »

Sell Dublin house. Buy other house. What am I missing here? Seems easy.

she wants to just release equity on dublin to buy the wexford one . so has 2 propertys. as rental in dublin is premium...................

teddyteddy

gordongekko wrote: »

Its very difficult to get a loan at the moment. Her age would be a major issue. Unless she can pay cash for the place in Wexford then her most likely options are already mentioned in the previous posts

if she put a down payment of say 1/3 just saying . would the banks veiws differ?? approx 25k........... of the total cost of wexford.

gordongekko

teddyteddy wrote: »

if she put a down payment of say 1/3 just saying . would the banks veiws differ?? approx 25k........... of the total cost of wexford.

you would really need to talk to a professional about this but given the tight criteria used by banks at the moment her age would seem to make it very unlikely to happen.

Buzzliteyear

Unless you were to go as guarantor on her remortgage? Would that be an option?

teddyteddy

i work pt time . ive tried that one .

Fitz123

Hi teddy,

On the face of it you are asking a very basic question, but there is a bit to it.

Not alone will it be hard to get a loan given your mothers age, but she will then be a landlord. You mention €1,200 a month in potential rent. You need to also think of the following;

2 sets of local property tax

interest on the loan to buy the wexford property. If this interest relates to a loan taken out against the Dublin property, is it deductible against the Dublin income (I think not but check it.)

tax on the income in Dublin. Even if interest in Dublin is allowable you can only claim 75%

the knock on effect the income may have against any social welfare payments your mother receives

who will manage the property in Dublin when she is in Wexford, if not you, how much will that cost

vacant periods, you will do well to not have gaps between tenants

damages, wear and tear in a rented house is likely to be a lot more than in an owner occupied house. (Look at various sites to see horror stories that hopefully will never happen, but if someone thrashed the place how would your mother cope)

paperwork i.e. tax returns, registering with the prtb etc.


The above is not exhaustive by any means, so there is a lot to think of. At the age of 65, becoming a first time landlord is a big decision. Getting the loan from the bank is only a small part of the decision so don't take those aspects lightly.

teddyteddy

agreed did homework all week exausting x

3DataModem

Fitz123 wrote: »

Hi teddy,

On the face of it you are asking a very basic question, but there is a bit to it.

Not alone will it be hard to get a loan given your mothers age, but she will then be a landlord. You mention €1,200 a month in potential rent. You need to also think of the following;

2 sets of local property tax

interest on the loan to buy the wexford property. If this interest relates to a loan taken out against the Dublin property, is it deductible against the Dublin income (I think not but check it.)

tax on the income in Dublin. Even if interest in Dublin is allowable you can only claim 75%

the knock on effect the income may have against any social welfare payments your mother receives

who will manage the property in Dublin when she is in Wexford, if not you, how much will that cost

vacant periods, you will do well to not have gaps between tenants

damages, wear and tear in a rented house is likely to be a lot more than in an owner occupied house. (Look at various sites to see horror stories that hopefully will never happen, but if someone thrashed the place how would your mother cope)

paperwork i.e. tax returns, registering with the prtb etc.


The above is not exhaustive by any means, so there is a lot to think of. At the age of 65, becoming a first time landlord is a big decision. Getting the loan from the bank is only a small part of the decision so don't take those aspects lightly.

Interest on the Dublin mortgage definitely won't be allowable on the Dublin rent. The money has to be spent refurbishing or purchasing the property rented out, to qualify.

So a lumpy tax bill, plus property tax, plus PRTB, plus all the other costs.

Tread carefully.