Tax implications for adding name to Deeds

rekcaks

Three years ago I got a mortgage. At the time I had to put my father’s name on the mortgage as a guarantor( joint mortgage sole title). Since then I got married.

Afaik its just my name on the deeds(joint mortgage sole title)

I now want to take my father’s name off the mortgage and put my wifes on and also add my wifes name to the deeds.

What are the tax implications of putting my wifes name on the deeds?

I borrowed €100k and have €84,900 left to pay.

The house has been valued at €170k by an auctioneer( for mortgage purposes).

I hope to do an equity release in the near future to do some more work around the house.

Any advise appreciated.

Mr. Incognito

Mortgage (A Contract) and Deeds (The Title) have nothing to do with each other.

If he is a guarantor he is not "on the Deeds" just on the mortgage.

If you want to transfer it to your wife it is very easy to do. No tax on inter spousal transfers.

Go see a solicitor.

rekcaks

Mr. Incognito wrote: »

Mortgage (A Contract) and Deeds (The Title) have nothing to do with each other.

If he is a guarantor he is not "on the Deeds" just on the mortgage.

If you want to transfer it to your wife it is very easy to do. No tax on inter spousal transfers.

Go see a solicitor.

Hi, Thanks for the reply.

I have seen a solicitor about this 2 years ago and he informed me that there would be tax implications because I owned the house less than 5 years? I came on here to see if anyone knew what those implications would be. Its all very confusing to me!

Back then(2 years ago) i wanted to do an equity release but the Bank had a condition stating that the deeds had to be in both mine and my wifes name.
I went to my solicitor to do so and he informed me that I would have to pay a tax if I wanted to transfer my wifes name onto the deeds.

Im left bewildered by this whole legal jargon!:(

Just to add.... the reason the bank wanted my wifes name on the deeds/mortgage is probably because she now has permanent and secure employment in a very well paid job.

dogsears

rekcaks wrote: »

Hi, Thanks for the reply.

I have seen a solicitor about this 2 years ago and he informed me that there would be tax implications because I owned the house less than 5 years? I came on here to see if anyone knew what those implications would be. Its all very confusing to me!

Back then(2 years ago) i wanted to do an equity release but the Bank had a condition stating that the deeds had to be in both mine and my wifes name.
I went to my solicitor to do so and he informed me that I would have to pay a tax if I wanted to transfer my wifes name onto the deeds.

Im left bewildered by this whole legal jargon!:(

Just to add.... the reason the bank wanted my wifes name on the deeds/mortgage is probably because she now has permanent and secure employment in a very well paid job.

See a different solicitor. (And ask for your money back from the first one;))

Mr. Incognito

He was probably referencing that where a property is transferred free of CAT and it is subsequently transferred to a third party the CAT is clawed back in that the gift is deemed to move from A to C not A to B to C

This does not apply to interspousal transfers however.

Most solicitors are not au fait with tax. Go see a competent one.

rekcaks

Mr. Incognito wrote: »

He was probably referencing that where a property is transferred free of CAT and it is subsequently transferred to a third party the CAT is clawed back in that the gift is deemed to move from A to C not A to B to C

This does not apply to interspousal transfers however.

Most solicitors are not au fait with tax. Go see a competent one.

Hi, This could be the case. The property where the house was built was originally transferred from my Fathers name to mine.

I have set up a meeting with him for Tuesday.

rekcaks

So basically, If i want to have the property transferred into both our names i shouldn't have to pay any tax?

Mr. Incognito

Look you have a solicitor.

Go speak to him.

This is anonymous online forum. It's not where you get property advice.

If he is crap- get a better solicitor.

Interspousal transfers are free of tax. If you own it 100% and are transferring 50% to your wife, then no tax arises.

Geuze

I am curious as to why somebody would do this.

Lots of people bought houses before they married.

Many people would be the sole owner on the deeds, and sole on mortgage.

But a wife would then have legal rights to the house, irrespective of her name not being on the deeds.

If husband dies, she gets the house.

I don't think there's any need to add her name to the deeds.

Mr. Incognito

Geuze wrote: »

I am curious as to why somebody would do this.

Lots of people bought houses before they married.

Many people would be the sole owner on the deeds, and sole on mortgage.

But a wife would then have legal rights to the house, irrespective of her name not being on the deeds.

If husband dies, she gets the house.

I don't think there's any need to add her name to the deeds.

Joint owners the asset passes by survivorship. If the husband is the full owner and dies and doesnt will it to her she has no automatic legal right to full ownership

If he dies intestate she gets a legal right share which may not add up to the house. In fact the house could be sold to meet it.

Always prudent to put thefamily home in joint names to avoid this

rekcaks

Geuze wrote: »

I am curious as to why somebody would do this.

Lots of people bought houses before they married.

Many people would be the sole owner on the deeds, and sole on mortgage.

But a wife would then have legal rights to the house, irrespective of her name not being on the deeds.

If husband dies, she gets the house.

I don't think there's any need to add her name to the deeds.

The main reason i want to do this is because it is a requirement the Bank wanted met before we can go ahead and release equity on the home.

rekcaks

Bring this thread back to life. I been to the solicitor again. The title deeds has only been in my name 3.5 years. He said any transfer before 6 years incurs CAT. It doesnt matter if its a spouse or not.

This really messes us up because i was hoping to to be to do the equity release to finish work outside my home!

dogsears

rekcaks wrote: »

Bring this thread back to life. I been to the solicitor again. The title deeds has only been in my name 3.5 years. He said any transfer before 6 years incurs CAT. It doesnt matter if its a spouse or not.

This really messes us up because i was hoping to to be to do the equity release to finish work outside my home!

There are some CAT reliefs that require you to retain the asset for 6 years to avoid a clawback of the relief. The main one that might apply to you is called the Dwelling House exemption. Does that ring a bell? I'd be surprised if this was utilised at the time given you said in the OP that you took out a mortgage for the house in other words you bought the house, but given what your solicitor is saying, I can't think of what else it might be. Perhaps it was worth more than 100k but you only paid 100k so the remainder was a gift to you that was exempt using this relief?

December2012

rekcaks wrote: »

Bring this thread back to life. I been to the solicitor again. The title deeds has only been in my name 3.5 years. He said any transfer before 6 years incurs CAT. It doesnt matter if its a spouse or not.

This really messes us up because i was hoping to to be to do the equity release to finish work outside my home!

Did you get it from your father? Is he talking about the Cat from your father to your wife?

Take a second opinion from a tax advisor

kidsan

rekcaks wrote: »

Three years ago I got a mortgage. At the time I had to put my father’s name on the mortgage as a guarantor( joint mortgage sole title). Since then I got married.

Afaik its just my name on the deeds(joint mortgage sole title)

I now want to take my father’s name off the mortgage and put my wifes on and also add my wifes name to the deeds.

What are the tax implications of putting my wifes name on the deeds?

I borrowed €100k and have €84,900 left to pay.

The house has been valued at €170k by an auctioneer( for mortgage purposes).

I hope to do an equity release in the near future to do some more work around the house.

Any advise appreciated.

I am doing something similar at the moment. Taking my dad off putting my wife on. Check out Mortgage Store they give €1500 toward legal fees and 2% cash back. My problem was my loan to value ratio. I'm borderline. If I remortgage with PTSB I will have to pay my legal plus their legal fees.