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| First Time Buyers |
For more info on first time buying please select from the sub-category menu on the right.
Mortgage Interest Tax Relief
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From January 1st 2002 mortgage interest tax relief is granted at source ie by the lender, TRS (Tax Relief at Source) replaces the system where interest relief was administered through the tax system.
The new system means that the borrowers account will be debited with the amount of the full mortgage repayment when due and credited at the same time with the amount of interest relief.
The relief is limited to the standard rate of 20% and monetary limits may also apply as per the chart.
Home Loans - Standard Rate 20%
First Time Buyer Euro
Single (max) 635
Married (max) 1,270
Widow(er)(max) 1,270
Non First Time Buyer Euro
Single (max) 508
Married (max) 1,016
Widow(er) (max) 1,016
A single first time buyer can, for example, get tax relief at an annual interest paid up to E3,175, tax @ 20% gives actual savings of E635
Stamp Duty
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The following are the Stamp Duty rates applicable from Jan 1st 2002.
The floor of an exempt property must not exceed 125 square metres
(1,346 square feet). All new properties that meet this requirement are
exempt.
Residential Property First Time
Buyer
-------------------------- -------------- ------------------------
Up to E127,000 Exempt
E127,001-E190,500 Exempt
E190,501-E254,000 3%
E254,001-E317,500 3.75%
E317,501-E381,00 4.5%
E381,001-E635,000 7.5%
Over E635,001 9%
Mortgage Deed Duty
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If the mortgage exceeds E254,000, duty is charged at E1.27 (0.1%) for every E1,270 borrowed. On a E317,435 mortgage, for example, duty of E317 is payable, subject to a maximum duty of E630.
Legal Fees
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Besides the solicitors customer service reputation, it is definitely worthwhile to compare charges. Plan for between 1% and 1.5% of the purchase price (before VAT of 21% from March 1st 2002) if you’re buying a home, or between 0.75% and 1% (before VAT) of the combined purchase and sale price if you are buying and selling at the same time. The solicitor will also charge you for administrative expenses such as telephone and fax charges together with third party costs – for example payments to the Land Registry or Registry of Deeds Office.
Land Registry and Registry of Deeds
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The following are the main ees applied by the Land Registry.
Transfer on Sale
Application for registration of a transfer on sale where the value of the consideration is:
Not in excess of E13,000 E125
In excess of E13,000 but not in excess of E26,000 E190
In excess of E26,000 but not in excess of E51,000 E250
In excess of E51,000 but not in excess of E255,000 E375
In Excess of E255,000 but not in excess of E385,000 E500
In excess of E385,000 E625
Mortgage Registration
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Application for registration of a mortgage (including a judgement mortgage) --------------------------------------------------------------------E125
Application for registration of a voluntary transfer------------------E85
Application for registration of part of the property described
In a folio of the register (in addition to the fee specified at items
No 1 and 2) where the registration requires the opening of a new
Folio on the register---------------------------------------------------Fee variable
The following are the main fees applied by the Registry of Deeds
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Registration and Memorials E44
Comparison
*on first submission Nil
*on each subsequent submission E12
Each additional certificate of registration
*if presented at the same time as memorial E12
*if presented subsequent to memorial E44
Common Search
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For each name, for each county, for each period of 10 years
Or part thereof E6
Continuation of Common Search
For each name, for each county, for each period of 10 years
Or part thereof E6
Negative Search
For each name, for each county, for each period of 10 years
Or part thereof E12
Continuation/Closing of Negative Search
For each name, for each county, for each period of 10 years
Or part thereof E12
Search by members of the Public
For each name, for each county, for each period of 10 years
Or part thereof E1.25
Copy Memorial
*Certified Copy Memorial E12
*plain copy of microfilm of memorial E0.60 per page
Entry of Satisfaction of Mortgage
*entry of certificate of satisfaction of judgement mortgage E12
*entry of satisfaction of mortgage and granting certificate
to the like effect E12
Inspection of original memorial or Affidavit E12
Indemnity Bond
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When a loan generally exceeds 75%-80% of the purchase price of the property, a once-off indemnity bond payment has to be provided by the borrower. The bond protects the lender in the event of a loss arising on any future sale of the property.
For example, a bond on a E182,842 mortgage where the property costs E203,160 and the lenders limit is 80% of the purchase price, costs E622
Property Valuation
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A valuation report on the property is required from a registered valuer. The valuer’s fee is usually about E95 including VAT. The valuation report is not a full structural survey which should also be arranged before contracts are signed. This should certainly be done at least in respect of an older property. The surveyors report typically costs about E380 including VAT.
Insurances
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Lenders also generally require that a property is covered by building insurance and a mortgage protection life assurance policy.
Early Redemption Charges.
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Some years ago early repayment of a mortgage or a reduction in the outstanding balance via the payment of a lump sum invariably led to a charge by the lender called a redemption fee. The advent of greater transparency and competition began a trend towards reductions to nominal levels or the elimination of the charges.
Lenders have agreed a code of practice whereby customers can on request:
A) Seek information about the redemption fee charged in the case of an early settlement or partial settlement of a loan. This information is to be provided in writing where specifically requested. To avoid misunderstanding it will be clearly stated that the quote is only valid on the date it is given.
B) Information on how an additional payment, made as a partial settlement of a loan, will impact on the account for interest calculation purposes (eg immediately, at year-end etc)
Where a borrower wishes to end a fixed-interest mortgage contract, a penalty is charged. A lender may charge a flat penalty equivalent to a range of 3 to 6 months of the value of the interest payments or the actual cost incurred when the contract is broken. Some lenders have the option of applying whatever provides the greatest compensation.
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