Help to buy ISA and staircasing a shared ownership flat

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
9 replies 1.6K views
SammyD86SammyD86 Forumite
2 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi everyone!


After saving up for years I am finally able to buy my first flat in London! I am purchasing it through shared ownership, so I will own 25% of the flat and over the next decade I will buy further tranches until I own 100% - they call this staircasing.


After I complete on the first 25% share I will be saving up cash in an ISA to use to buy the next tranche. Can I use a help to buy ISA to do this?


When I staircase I will not be a first time buyer, because I have already bought 25%. But I will still be purchasing my first property. So I assume it depends on the exact wording of the small print.


Does anyone know the answer to this? Or can anyone suggest where I can find out?

Replies

  • Archi_BaldArchi_Bald Forumite
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    I have not seen anything about staircaising before. I reckon you need to put your question to one of the following:
    1. the HMRC
    2. the Administrator (UKAR Corporate Services Limited)
    3. your local CAB
    4. your solicitor

    Please report back what you found out.
  • MARTYM8`MARTYM8` Forumite
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    But you won't be a first time buyer as you will already own 25% of a home - so will own a share of a property. So you won't legally be eligible - nor will any one who used to own all or part of a property and doesn't now.

    How of course they will check this for non UK EU citizens I don't know.

    Are you expecting significant salary increases to assume you will be able to afford to buy the other 75% in the future?

    'A first-time buyer is someone who doesn't own (and hasn't ever owned) an interest in a residential property, either inside or outside the UK, whether it was bought or inherited.'
  • colstencolsten Forumite
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    MARTYM8` wrote: »

    How of course they will check this for non UK EU citizens I don't know
    How do they come into this thread?
  • jimjamesjimjames Forumite
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    colsten wrote: »
    How do they come into this thread?

    Because the rules appear to suggest inside and outside UK
    Remember the saying: if it looks too good to be true it almost certainly is.
  • MARTYM8`MARTYM8` Forumite
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    jimjames wrote: »
    Because the rules appear to suggest inside and outside UK

    Yes - EU citizens are eligible as the government cannot deny them access to schemes British citizens can use.

    Not sure if HRMC have access to Romanian historic landregistry data from when Ceaucescu was in charge to check if the HTB ISA applicant had ever owned a home before.:D But if you are a Brit they can almost certainly find out if minded to.
  • colstencolsten Forumite
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    jimjames wrote: »
    Because the rules appear to suggest inside and outside UK

    Have you got a link?
  • MartyM8 that is exactly my question - it depends on the definition of a first time buyer. Is it someone who is buying their first property, or is it someone who hasn't previously owned a property?


    Where did you get that definition from?
  • colstencolsten Forumite
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  • colstencolsten Forumite
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    MARTYM8` wrote: »
    Not sure if HRMC have access to Romanian historic landregistry data from when Ceaucescu was in charge to check if the HTB ISA applicant had ever owned a home before.:D But if you are a Brit they can almost certainly find out if minded to.


    I think you underestimate the ability of the HMRC to find out about people's financial circumstances, regardless of where they used to live. There have been plenty of reports on that in the press.

    The safest way to avoid falling foul of the law is not to try and break it in the first place.
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