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Planning permission / transfering of ownership

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  • 28-01-2011 1:09pm
    #1
    pw01
    Closed Accounts Posts: 168 ✭✭


    HI ALL,

    My b/f's parents have given us a site with planning already on it.
    i can only get a mortgage in my name.My question is when we are tranferring the site into our names - Does if have to be just in my name to apply for the mortgage? Will i have to pay gift tax?

    thanks


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    #2
    orlaithd
    Registered Users Posts: 81 ✭✭orlaithd


    As far as I know (but I'm no expert):
    If you get in transferred into your name you will be liable for gift tax and the 1% stamp duty as far as I know.
    If its both names you pay 1% on your half and the gift tax based on half the value of the site and he pays just the 1% stamp duty on his half.
    If transfered into his name he pays just the 1% stamp duty.

    Look into all options and talk to a solicitor and a mortgage advisor. The bank may stipulate joint names on a joint mortgage.


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    #3
    pw01
    Closed Accounts Posts: 168 ✭✭pw01


    Do you think we could get away with leaving it in his parents names for the time being and when we get married it would be a gift to us both?
    i presume the bank need it in my name though............


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    #4
    muffler
    Registered Users Posts: 45,820 ✭✭✭✭muffler


    I'll move this over to the Accommodation & Property where the good people there will be able to answer your questions in more detail. :)


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    #5
    juke
    Registered Users Posts: 1,673 ✭✭✭juke


    I agree largely with orlaithd, but Stamp Duty will be based on the value of the site - but at non-residential rates
    http://www.revenue.ie/en/tax/stamp-duty/non-residential-rates.html
    so may be more than 1%.

    If it was transferred into your boyfriends name only the rate is halved - but that's most likely not possible, given you need to take out a mortgage.

    In order for you to take out a mortgage, the site will have to be put into your sole or joint names. It's unlikely that a lender would give you a mortgage in your sole name if the site is in joint names - suspect they'd insist both names are on the mortgage too.

    You don't say why the mortgage has to be in your name only - maybe there's a way around that?

    You need to talk to a solicitor and mortgage adviser.


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    #6
    Victor
    Registered Users Posts: 78,241 ✭✭✭✭Victor


    You need to get proper legal advice for yourself, independent of any advice received from their solicitor.


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    #7
    the_syco
    Registered Users Posts: 37,295 ✭✭✭✭the_syco


    Kinda off-topic, but could he buy the land off his parents for €50, or would that be fraud, as it'd bypass the 1% stamp duty?


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    #8
    muffler
    Registered Users Posts: 45,820 ✭✭✭✭muffler


    the_syco wrote: »
    Kinda off-topic, but could he buy the land off his parents for €50, or would that be fraud, as it'd bypass the 1% stamp duty?
    Wouldnt make any difference as any taxes payable are based on the "official value" of the site regardless of whether money exchanged hands or not.


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    #9
    alley2020
    Registered Users Posts: 29 ✭alley2020


    Hi all

    I am in the same situation, the reason i am the one applying for the mortgage is that my boyfriend is unemployed and has been for a year, before that he was self employed and earned little or no income so i would say the banks will class him as dependant on me and i may not get a mortgage based on that. The site we are getting is owned by his uncle, does this make a difference.

    Would a solicitor know if the bank will give a mortgage in sole name on a site that is in joint names?


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    #10
    henryporter
    Registered Users Posts: 2,089 ✭✭✭henryporter


    The planning permission generally goes with the land not the owner, unless some form of occupancy conditions apply - you need to check that as well.


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