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property transfer/mortgage

  • 20-08-2015 03:01PM
    #1
    Boaty
    Closed Accounts Posts: 615 ✭✭✭


    Hypothetical situation..
    Person (A)who is 18 and never bought a property wants to move to into his own apartment, his parents purchase a property for him and start paying the mortgage, (A) is feeling lonely in his two bed apartment so he rents the other room out.In order to avail of the 12,000 euro tax free rental, (A's) parents then transfer the property into his name but they still pay the mortgage. The apartment is owner occupied so the 12000 free rental applies?

    Will (A) be able to avail of a first time mortgage?
    Is this situation possible?


Comments

  • #2
    3DataModem
    Registered Users, Registered Users 2 Posts: 4,134 ✭✭✭3DataModem


    "parents then transfer the property into his name but they still pay the mortgage"

    If the property is in his name, it's almost certain the mortgage is in his name. Therefore, no.

    Also "transferring a property into someone's name" would require him to apply for a mortgage, get approval, etc etc no matter who is paying.


  • #3
    Boaty
    Closed Accounts Posts: 615 ✭✭✭Boaty


    Next situation then,
    Mortgage is payed off, parents transfer the property into the sons name, does the son lose his first time mortgage?


  • #4
    GerardKeating
    Registered Users, Registered Users 2 Posts: 7,869 ✭✭✭GerardKeating


    Boaty wrote: »
    Next situation then,
    Mortgage is payed off, parents transfer the property into the sons name, does the son lose his first time mortgage?

    Yes, is there much "First Time Buyers" benefit anymore?


  • #5
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    GerardKeating wrote: »
    Yes, is there much "First Time Buyers" benefit anymore?

    Deposit rules mainly.


  • #6
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    From my cursory research there is no need to be the owner to avail of RAR relief. You simply need permission to sublet, which presuambly - hypothetically - would be forthcoming.

    What tax liability A Parents might have in relation to the property is unclear. Presumably none, but one might want to explore the possibility of claiming relief on the mortgage interest.

    Hypothetically speak to a hypothetical accountant.


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  • #7
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Son does not have to have the apartment in his name to avail of the rent a room scheme.


  • #8
    FreudianSlippers
    Registered Users, Registered Users 2 Posts: 20,397 ✭✭✭✭FreudianSlippers


    Boaty wrote: »
    is feeling lonely in his two bed apartment

    I mean... hypothetically lonely of course.

    We don't do legal advice here. Thread can stay open for now, but if it veers into specific advice it will be closed


  • #9
    Boaty
    Closed Accounts Posts: 615 ✭✭✭Boaty


    Can more than one RAR allowance be given on the same property?
    For example 2 sons renting a 10 bed tenement?
    So a maximum tax free yield of 24k?


  • #10
    ohnonotgmail
    Registered Users, Registered Users 2 Posts: 40,823 ✭✭✭✭ohnonotgmail


    Boaty wrote: »
    Can more than one RAR allowance be given on the same property?
    For example 2 sons renting a 10 bed tenement?
    So a maximum tax free yield of 24k?


    no.


  • #11
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Boaty wrote: »
    Can more than one RAR allowance be given on the same property?
    For example 2 sons renting a 10 bed tenement?
    So a maximum tax free yield of 24k?

    There would be ways of doing it, especially with a tenement but it would require the right building and planning. But given your level of research I'm going with Conor's succinct answer.

    Your hypotheticals are getting less and less hypothetical, hypothetically. Hypothetically that hypothetical tax accountant is hypothetically, looking more and more like a better option.


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  • #12
    Boaty
    Closed Accounts Posts: 615 ✭✭✭Boaty


    I can understand as to why everyone thinks this is a real situation for me, I'd love if it was... But I'm afraid its just a discussion between friends, I need to come up with another hypothetical situation


  • #13
    ohnonotgmail
    Registered Users, Registered Users 2 Posts: 40,823 ✭✭✭✭ohnonotgmail


    MarkAnthony wrote: »
    There would be ways of doing it, especially with a tenement but it would require the right building and planningarrow-10x10.png. But given your level of research I'm going with Conor's succinct answer.

    Your hypotheticals are getting less and less hypothetical, hypothetically. Hypothetically that hypothetical tax accountantarrow-10x10.png is hypothetically, looking more and more like a better option.

    who is this conor you speak of?


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