Planning permission / transfering of ownership

pw01 · 28-01-2011 1:09pm #1

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

orlaithd · 28-01-2011 2:26pm

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.

pw01 · 28-01-2011 2:30pm

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............

muffler · 28-01-2011 3:18pm

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

juke · 28-01-2011 6:57pm

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.

Victor · 29-01-2011 3:58pm

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

the_syco · 31-01-2011 6:58pm

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?

muffler · 31-01-2011 7:03pm

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.

alley2020 · 03-02-2011 10:31pm

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?

henryporter · 03-02-2011 10:36pm

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.

Planning permission / transfering of ownership

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