Mortgages and deeds of house.

gomalley · 25-01-2019 2:47pm #1

Hi Everyone,

Just a quick question with regards Mortgages and deeds and would appreciate if anyone could steer me in the right direction.

Myself and my other half are looking for a house and would like to get something in the next 6 months or so.

I have touched base with the banks but as we are not at the application stage we tend to get the generic standard responses. My situation briefly is that I am employed by a company in Malta and I am paying tax in Malta,paid in Euros. My missus is a teacher here in Ireland.

A certain bank has told me I need to be paid in Euros, which I am, and need to be paying tax in Ireland. Not convinced of that one but I'm not well up.

My main question is basically, If i apply with my old man who would be on good terms with the bank, is it possible for myself and my significant other to be on the deeds and not him? My other half would not be completely comfortable not being on the deeds,which is understandable considering she would be contributing to the deposit and mortgage.

I was thinking worst case scenario, basically my old man gets the mortgage which comes out of his account lets say the 1st of the month and my standing order/Direct debit goes into his account the following day,if that makes sense.

He could transfer the deeds at some point. Trying to figure out what way it might work. I am more or less confident I can pay off the mortgage if I can just get the loan. Not sure if that would effectively make my father a guarantor and if the banks are entertaining that these days.

Would very much appreciate any input or info guys.

Thanks a lot!!

Feisar · 25-01-2019 2:53pm

Serious topic, this isn't really the place to be honest.

There's an accomadation and propery forum here, better bet. However I'd seek proper advice.

The Tetrarch · 25-01-2019 3:01pm

People can give assets to each other, by as far as I know they must pay Capital Acquisitions Tax (CAT).
It is a tax on gifts and inheritances, with thresholds below which tax is not payable and above which tax is payable (at heavy rates).

Get expert advice, and don't get it in a pub, or from randomers on the internet.
If you don't you may have a six figure tax bill in the future and penalties for avoidance.

James Brown · 25-01-2019 3:08pm

gomalley wrote: »

Hi Everyone,

Just a quick question with regards Mortgages and deeds and would appreciate if anyone could steer me in the right direction.

Myself and my other half are looking for a house and would like to get something in the next 6 months or so.

I have touched base with the banks but as we are not at the application stage we tend to get the generic standard responses. My situation briefly is that I am employed by a company in Malta and I am paying tax in Malta,paid in Euros. My missus is a teacher here in Ireland.

A certain bank has told me I need to be paid in Euros, which I am, and need to be paying tax in Ireland. Not convinced of that one but I'm not well up.

My main question is basically, If i apply with my old man who would be on good terms with the bank, is it possible for myself and my significant other to be on the deeds and not him? My other half would not be completely comfortable not being on the deeds,which is understandable considering she would be contributing to the deposit and mortgage.

I was thinking worst case scenario, basically my old man gets the mortgage which comes out of his account lets say the 1st of the month and my standing order/Direct debit goes into his account the following day,if that makes sense.

He could transfer the deeds at some point. Trying to figure out what way it might work. I am more or less confident I can pay off the mortgage if I can just get the loan. Not sure if that would effectively make my father a guarantor and if the banks are entertaining that these days.

Would very much appreciate any input or info guys.

Thanks a lot!!

I'm no expert..good night.
Essentially it's a loan on property. If you can satisfy the money lender that you meet their criteria to pay back the loan that's all there really should be to it. Malta shouldn't be a factor I wouldn't think. At the risk of getting all After Hours, Denis O'Brien isn't a tax resident in Ireland, but is in Malta. However he has numerous business interests in Ireland and avails of state contracts given to him, so I don't see why your company or even you tax wise, being based abroad is an issue. Not saying it won't colour the tax take but it shouldn't be a barrier especially if you are an Irish resident merely paid from abroad. I'd approach another lender or even someone else in that same institution. It's not like the bank needs to know you work for Johnny up the road. In my experience the deeds are often not updated too often anyway it's more about the loan on the property, who holds the deeds and showing you do or don't own any other properties which may effect your ability to pay back. The council can quite easily run a check and certify your stance as regards multiple properties.

mikhail · 25-01-2019 3:15pm

I'd suggest you get househunter approval. It's not that complicated, it'll confirm whether you can resolve any questions over where you work, and it doesn't actually require you to do much other than have a meeting. If they say no, I'd advise you talk to the bank's mortgage advisors, an independent mortgage broker and/or a solicitor about your options. The lads on the property subforums probably know what they're talking about, but "probably" doesn't wash when it comes to hundreds of thousands of euro.

James Brown · 25-01-2019 3:25pm

mikhail wrote: »

I'd suggest you get househunter approval. It's not that complicated, it'll confirm whether you can resolve any questions over where you work, and it doesn't actually require you to do much other than have a meeting. If they say no, I'd advise you talk to the bank's mortgage advisors, an independent mortgage broker and/or a solicitor about your options. The lads on the property subforums probably know what they're talking about, but "probably" doesn't wash when it comes to hundreds of thousands of euro.

I'd avoid the solicitor route until needed.

JoeyJJ · 25-01-2019 3:29pm

Mortgage broker may find you one which will allow not being taxed here. Don't do anything stupid go to a broker.

[Deleted User] · 25-01-2019 3:50pm

Look up double taxation between Ireland and Malta. Could end up having the same tax liability that you currently have but there’s also a credit so could be beneficial.

That would then cover euro wages and tax compliance that bank is looking for.

Buford T. Justice XIX · 25-01-2019 8:04pm

Mod note: Best move this to a more specialised forum so I'll close this down for a wee while while doing it.

Please note the change in forum and forum rules before posting,

Buford T. Justice

L1011 · 25-01-2019 8:15pm

Reopening, as above this isn't AH anymore.

It is extremely unlikely a bank would deal with a situation like that due to issues about title, Family Home Protection Act and so on.

As goes him taking out the mortage and you paying it to him - that is going to raise massive taxation issues.

Mortgages and deeds of house.

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