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    • jde91
    • By jde91 3rd Oct 17, 11:38 AM
    • 9Posts
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    jde91
    Can I use my HTB to buy into my partners house?
    • #1
    • 3rd Oct 17, 11:38 AM
    Can I use my HTB to buy into my partners house? 3rd Oct 17 at 11:38 AM
    I can't seem to find an answer to this... although i think that means it's a no...

    I live with my partner in the house he owns, can I use my HTB ISA to buy into the house when the time is right?

    Thanks!
Page 1
    • Neil Jones
    • By Neil Jones 3rd Oct 17, 3:18 PM
    • 826 Posts
    • 451 Thanks
    Neil Jones
    • #2
    • 3rd Oct 17, 3:18 PM
    • #2
    • 3rd Oct 17, 3:18 PM
    H2B is primarily for new builds I believe. There is such a thing as shared ownership but that again is for new builds or where you buy from a housing association. I don't think H2B could be used to buy effectively a percentage of the house your partner owns, though I'm happy to be proved wrong.
    • Lolly88
    • By Lolly88 3rd Oct 17, 4:31 PM
    • 213 Posts
    • 677 Thanks
    Lolly88
    • #3
    • 3rd Oct 17, 4:31 PM
    • #3
    • 3rd Oct 17, 4:31 PM
    The HTB ISA is not just for new builds.

    I don't know whether you can use it in the situation you describe. I'm sure someone who knows a bit more than me might be able to offer advice.
    House Fund - £27461.69
    Save 7k in 2017 #6: £4461.69/£7,000
    Save 12k in 2016: £14,750/£12000 - Save 6k in 2015: £8250/£6000
    • Rich2808
    • By Rich2808 3rd Oct 17, 7:00 PM
    • 486 Posts
    • 391 Thanks
    Rich2808
    • #4
    • 3rd Oct 17, 7:00 PM
    • #4
    • 3rd Oct 17, 7:00 PM
    I can't seem to find an answer to this... although i think that means it's a no...

    I live with my partner in the house he owns, can I use my HTB ISA to buy into the house when the time is right?

    Thanks!
    Originally posted by jde91
    There are some FAQs here

    https://www.helptobuy.gov.uk/help-to-buy-isa/faq/

    Potentially if you got your name put on the deeds and took a mortgage out to fund your share you could be eligible for the bonus. But you will need to ask your solicitor as its a grey area.

    Do I have to be on the mortgage of the property I am buying?

    In order to be eligible for a government bonus you need to be on the title deed of the property and the property must be purchased with the assistance of a mortgage. Under the Help to Buy: ISA Scheme Rules, you don’t need to be named on the mortgage of the property, however your lender may require all individuals named on the title deed to also be named on the mortgage.
    • bowlhead99
    • By bowlhead99 3rd Oct 17, 8:25 PM
    • 6,741 Posts
    • 12,015 Thanks
    bowlhead99
    • #5
    • 3rd Oct 17, 8:25 PM
    • #5
    • 3rd Oct 17, 8:25 PM
    I can't seem to find an answer to this... although i think that means it's a no...

    I live with my partner in the house he owns, can I use my HTB ISA to buy into the house when the time is right?

    Thanks!
    Originally posted by jde91
    Scheme rules at
    https://www.helptobuyisaadmin.org.uk/sites/default/files/scheme-rules_0.pdf

    Definition of purchase price (for purposes of checking the £260k / £450k limit) includes:
    (c) in connection with the acquisition of an interest in land by a person who as a result of the acquisition becomes a joint owner of the land with another person who previously owned the land, the market value of the whole of the land as determined at the time of the acquisition;
    The bit about "land" is just because the legal regulations are all in reference to an "eligible interest in land" capable of being registered at land registry in England & Wales or equivalent; it refers to the property .

    So, the regulations are clearly written with the expectation of a situation you describe, where one person owns the property, and another person buys an interest in the property and wants to collect a bonus in doing so, while the original owner (eg, your partner) carries on owning some of it.

    The reference in another post to it being a "grey area" is because there is a FAQ which tells conveyancers generally that the bonus shouldn't be claimable when doing a remortgage. So, some people have taken that to mean that if you have a mortgaged property in one person's name and restructure the ownership so that you end up with a fresh mortgage on the property in multiple names, you can't grab the bonus. However, I believe that's a misunderstanding; the FAQ is a simplification and is just trying to give a high level answer that a person can't own a property already and then simply remortgage it to kick off a bonus claim - there has to be an actual purchase involved (and if you already owned the property you would not be a FTB anyway).

    So, if you buy a piece of your property off your partner (and they carry on owning the rest of it), as a genuine purchase through a solicitor, that's an activity which could allow a bonus to be claimed for the new buyer (as long as they are an "eligible purchaser"who has never owned any residential property), which is why they have gone to the trouble of defining the purchase price in that situation in the detailed scheme rules.

    However, ultimately it is your solicitor who files the claim so you will need to make sure they agree with the interpretation as it is not a very common way of using the bonus. I expect Martin Lewis and those in the industry do not highlight this opportunity to get free government cash in this way, for fear of "killing the golden goose"; it would probably be pretty trivial for HMRC to change the rules to stop people bringing their other half into their existing property with a free cash handout from the taxpaying public when they were already living together in the property as a household with joint finances in many cases.

    If your partner was actually your spouse at the time you were doing it, you might find it to be more efficient to simply gift the entire share of interest in the property, and get the second person added onto the property ownership register and mortgage. In that situation, if you'd instead decided to buy the interest for cash (including government HTB bonus) and a share of mortgage taken on, there would be a stamp duty implication because the property would be changing hands for consideration rather than for free.
    Last edited by bowlhead99; 03-10-2017 at 8:28 PM.
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