Building on gifted site

25K

Myself and my boyfriend are looking at building house together - his father is going to gift him the site and I want to use money I have previously inherited to contribute to building the house and remainder we will receive through joint mortgage. For tax purposes, my understanding is that only boyfriends name will be on the house. Considering worse case scenarios if relationship were to breakdown or one of us died I was wondering what rights would I have to the house or if there a way to safe guard my investment?

JVince

Draw up a simple loan agreement in that it is repayable if you split up and becomes null and void should you become married.

If it was in both names, you would be liable to pay gift tax on half the site value.

Dave_D_Rave

As your not married get a will drawn up this will ensure you have a right if he dies even though you are currently not married.

For the planning his name will be on the app solely more than likely as he will have the ties to the area.

Depending on how much you are contributing I'd be more wary of the loan repayment agreement money your putting in now might be worth a lot more to you if you were to be single and a couple of more years down the road. I'd put a bit more thought into it don devalue yourself.

Bass Reeves

OP

You will not get a joint mortgage unless the site and house is in joint names. Is it viable for you to buy your half of the site from your perspective FIL and he and your MIL could gift the money back to you both (3K X 4 over 2-3 years)

The value of the site and the age of your FIL will be a deciding issue. If he is over 60 he can sell the site tax free using his business retirement allowance

Have you considered keeping your inheritance in your own account? Why not just add another sum of money to your intended joint mortgage? Or is your cash contribution an unofficial way of matching his ownership of the plot? Speak to a solicitor for sure.

SodiumCooled

https://www.boards.ie/discussion/comment/121652237#Comment_121652237

I don’t think this is correct. The site wasn’t even in my name when I got the mortgage I had nothing expect a letter from my father stating the site would be gifted to me (no mention of my wife) and had no issue getting a mortgage. They have never looked for anything else and we have been drawing down for over a year.

The mortgage and house will need to be joint but the site shouldn’t matter and for tax purposes the site is often left in one name.

Bass Reeves

https://www.boards.ie/discussion/comment/121704345#Comment_121704345

How long ago was that. My son is applying for a mortgage presently admittedly by himself. But every institution is requiring confirmation from a solicitor tgat tge site has been transferred. No requirement from us that it was gifted.

I am not sure did one require the stamp duty certificate. I cannot see a bank.veing willing to allow a site in one name. AFAIR historically they even looked for the sire in two name as inntge case of something happening to the site owner especially where the couple were not married it left them with a precarious lean on the property

C. Eastwood

https://www.boards.ie/discussion/2058332525/building-on-gifted-site

Get legal advice form a Solicitor.

SodiumCooled

https://www.boards.ie/discussion/comment/121709801#Comment_121709801

We secured the mortgage approximately 2 years ago. I double checked again on the online portal and the site gift letter is all I ever gave the bank.