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Swapping houses of equal value

  • 01-09-2018 8:00pm
    #1
    Squall Leonhart
    Closed Accounts Posts: 1,794 ✭✭✭


    If two house owners, both paying a mortgage, have homes of a very similar value are interested in doing a swap, how might the legal bits work?


Comments

  • #2
    juke
    Registered Users, Registered Users 2 Posts: 1,673 ✭✭✭juke


    Exactly the same as any other purchase & sale, pretty much.


  • #3
    ted1
    Registered Users, Registered Users 2 Posts: 23,898 ✭✭✭✭ted1


    Exact same. Including stamp duty.


  • #4
    Squall Leonhart
    Closed Accounts Posts: 1,794 ✭✭✭Squall Leonhart


    So in this case assuming both agreed to sell to each other for the value of the other house, in essence a straight swap would happen, 1% stamp duty, solicitor fees would be it really?


  • #5
    Stanford
    Registered Users, Registered Users 2 Posts: 1,194 ✭✭✭Stanford


    Not quite simple, full legals apply, conveyancing, Land Registry fees etc.

    Also respective banks will need to consent as they will undoubtedly have a charge over each property


  • #6
    ted1
    Registered Users, Registered Users 2 Posts: 23,898 ✭✭✭✭ted1


    Squall Leonhart wrote: »
    So in this case assuming both agreed to sell to each other for the value of the other house, in essence a straight swap would happen, 1% stamp duty, solicitor fees would be it really?

    Are there mortgages involved ? You’ll need to get Surveys snd valuations done etc


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  • #7
    Stanford
    Registered Users, Registered Users 2 Posts: 1,194 ✭✭✭Stanford


    ted1 wrote: »
    Are there mortgages involved ? You’ll need to get Surveys snd valuations done etc

    OP said "If two house owners, both paying a mortgage,"


  • #8
    Pkiernan
    Registered Users, Registered Users 2 Posts: 4,310 ✭✭✭Pkiernan


    Capital Gains Tax on both houses will be payable if their assessed vale is higher than the price paid for each one by current owner.


  • #9
    juke
    Registered Users, Registered Users 2 Posts: 1,673 ✭✭✭juke


    Pkiernan wrote: »
    Capital Gains Tax on both houses will be payable.

    Why, if both are PPR's?


  • #10
    Pkiernan
    Registered Users, Registered Users 2 Posts: 4,310 ✭✭✭Pkiernan


    juke wrote: »
    Why, if both are PPR's?

    Should have said 'may' !


  • #11
    Pkiernan
    Registered Users, Registered Users 2 Posts: 4,310 ✭✭✭Pkiernan


    juke wrote: »
    Why, if both are PPR's?

    Should have said 'may' !


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  • #12
    Stanford
    Registered Users, Registered Users 2 Posts: 1,194 ✭✭✭Stanford


    Pkiernan wrote: »
    Capital Gains Tax on both houses will be payable if their assessed vale is higher than the price paid for each one by current owner.

    No Capital Gains Tax is payable on a principle private residence and one undeveloped acre attached to same


  • #13
    Stanford
    Registered Users, Registered Users 2 Posts: 1,194 ✭✭✭Stanford


    Pkiernan wrote: »
    Should have said 'may' !

    Under what circumstances?


  • #14
    Peregrinus
    Registered Users, Registered Users 2 Posts: 26,992 ✭✭✭✭Peregrinus


    Stanford wrote: »
    Under what circumstances?
    If one or both of the properties being exchanged is not a principal private residence.


  • #15
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    Peregrinus wrote: »
    If one or both of the properties being exchanged is not a principal private residence.

    Or was for a period of either owners ownership not a principal private residence.


  • #16
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,286 Mod ✭✭✭✭The_Conductor


    Stamp duty etc is due for both transactions.
    Once upon a time you could do exactly what the OP is suggesting- swap property of an equal value without inducing a tax demand- however, Charlie McCreevy closed down that 'loophole' in or around 20 years ago. It is accepted it was widely abused particularly by the better off in society.


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