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Sale Price V Mortgage Provider Valuation

  • 11-03-2015 10:35pm
    #1
    Marian1234
    Registered Users, Registered Users 2 Posts: 1 ✭


    Hi,

    I was wondering if anyone could offer me some advice. I have spent the evening on Google and reading different threads but I can't find the answer I am looking for.

    I am in the process if buying a house from my parents. We had the property valued by an auctioneer at €100,000 and we agreed this was a fair price.

    On that basis I approached Ulster Bank and thy approved me for a mortgage for a property value up to €150,000.

    Ulster Bank are sending their auctioneer to the house tomorrow to value the property.. I spoke to their auctioneer today and he said that before seeing it he would guess a value of 125-130K... This would be great for me as my LVR (loan to value) would be below 80%..


    My question though is..... will this have an impact on my Dad's CGT bill... as we already have a valuation of 100K and the sale agreed is 100K is this what the revenue commissioners what us to declare?

    Does the banks valuation have any impact on the sale price and possible CGT implications.
    Does the bank report their valuation to the taxman or does it show up when my TRS is being applied for?

    The last thing I want is for my Dad to get a large CGT bill for the sake of me getting a lower interest.

    Sorry for rambling..

    Any advice greatly appreciated


Comments

  • #2
    seamus
    Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    Your solicitor should be able to answer these question, but if not a competent accountant should.

    The price will likely need to be submitted to the Property Price Register as not being the full market price, but since you have a proper valuation for the house, I don't see any issue arising. Revenue will get involved if the purchase price is insanely low, but where your price is backed up by a valuation you should be OK.

    But yeah, your solicitor should be your primary point of contact.

    You can no longer claim TRS, so that's not an issue.


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