now 37, sold my flat in 2005 - HTB/LISA

Norscbu

I'm 37 and I bought a flat in 2000, which I sold in 2005.

Am I completely ineligible for an HTB / LISA ?

I've read everything I can find in hope that I can somehow qualify, am I totally out of luck or is there some loophole I can use?

jimjames

You need to be a first time buyer. If you have owned a house before you are not a first time buyer.

Does that answer your question?

fun4everyone

As it stands I think you will be able to use a Lifetime Isa, although you will not be able to withdraw the money until you are 60.

The Autumn statement next week hopefully will clarify things but being a previous homeowner does not exclude you from a LISA, it does exclude you from HTB.

jimjames

fun4everyone wrote: »

The Autumn statement next week hopefully will clarify things but being a previous homeowner does not exclude you from a LISA, it does exclude you from HTB.

The info I've seen says you are excluded from a LISA as well as HTB if you have owned a property before

fun4everyone

jimjames wrote: »

The info I've seen says you are excluded from a LISA as well as HTB if you have owned a property before

Thanks jj, do you have a cite for this? I have read nothing that talks about such a restriction. All the material I have read says LISA can be used for two reasons, retirement and buying first property. I have not read about previous homeowners under 40 not being allowed a LISA.

Ed-1

jimjames wrote: »

The info I've seen says you are excluded from a LISA as well as HTB if you have owned a property before

Conditions for application to open an account that is a Lifetime ISA
12B.—(1) An application by an individual to open a Lifetime ISA must be made in the year in which the applicant first makes a payment to that account and must fulfil the conditions specified in paragraph (2).
(2) The application must state that it is an application to open a Lifetime ISA and—
(a) specify the first year to which the application relates,
(b) contain the information specified in paragraph (3),
(c) contain a declaration by the applicant in accordance with paragraph (4).
(3) The application must contain—
(a) the applicant’s full name;
(b) the address and postcode of the applicant’s permanent residence;
(c) the applicant’s national insurance number;
(d) the applicant’s date of birth; and
(e) the authorisation specified in paragraph (5).
(4) A Lifetime ISA application must contain a declaration by the applicant that—
(a) all cash payments made, and to be made, to the account are or will be the applicant’s cash;
(b) the applicant has not made, and will not make, any current year payments or a payment described in regulation 10A(4)(c) to any other Lifetime ISA—
(i) in the year to which paragraph (2)(a) refers, or
(ii) in any subsequent year in which the declaration has effect,
(c) the applicant has not exceeded, and will not exceed, the overall subscription limit in regulation 4ZA(1)—
(i) in the year to which paragraph (2)(a) refers, or
(ii) in any subsequent year in which the declaration has effect;
(d) the applicant has not made, and will not make, current year payments that exceed the overall Lifetime ISA payment limit in regulation 4ZA(1A)—
(i) in the year to which paragraph (2)(a) refers, or
(ii) in any subsequent year in which the declaration has effect;
(e) the applicant—
(i) is 18 years of age or over, and
(ii) except where the Lifetime ISA is being opened to receive—
(aa) a transfer of current year’s subscriptions or previous years’ subscriptions from another Lifetime ISA (within the meaning of regulation 21(1)),
(bb) a payment in accordance with regulation 5D(2)(a)(ia), or
(cc) a payment in accordance with regulation 5D(2)(a)(ib);
is under 40 years of age;
(f) the applicant is—
(i) resident in the United Kingdom,
(ii) a person who has general earnings from overseas Crown employment subject to United Kingdom tax within the meaning given by section 28 of ITEPA 2003(a), or
(iii) married to or in a civil partnership with a person mentioned in paragraph (ii), and will inform the account manager if the applicant ceases to be so resident, or to perform such duties, or to be married or in a civil partnership with a person who performs such duties, as the case may be; and
(g) that the declaration shall have effect for each year in which the applicant makes a payment to the account.
(5) The authorisation specified by this paragraph is authority given by the applicant to the account manager—
(a) to hold the payments, account investments, interest, dividends and any other rights or proceeds (including any government bonus) in respect of those investments and cash;
(b) to make on behalf of the applicant any claims to relief from tax in respect of account investments;
(c) to submit government bonus claims to the Board on the applicant’s behalf;
(d) to withhold and deduct from a balance in the account and pay to the Board any charges due on withdrawals;
(e) to make a record in writing in accordance with paragraph (7)(a) where that paragraph requires the account manager to do so.
(6) An account manager may not accept as an account investor any individual if the account manager has reason to believe that—
(a) the individual is not or might not be a qualifying individual;
(b) the individual has given untrue information in an application; or
(c) subject to the exceptions described in regulation 12B(4)(e)(ii), the individual is 40 years of age or over.
(7) Where an application is not in writing, or the account manager operates a record system under which all original written applications are not retained—
(a) the account manager must, immediately after receiving the application, record in
writing on behalf of the applicant, the declaration required by paragraph (2)(c) and the authorisation required by paragraphs (3)(e) and (5);
(b) the account manager must notify the applicant in writing of the contents of the written record within 5 business days of making it; and
(c) the written record, as amended by any corrections notified to the account manager by the applicant within 30 days of the notification mentioned in sub-paragraph (b), shall be treated as the applicant’s declaration required by paragraph (2)(c) and the authorisation required by paragraphs (3)(e) and (5).
(8) For the purposes of paragraph (7), “in writing” and “written record” have the same meanings as in regulation 12A(12) to (14).
(9) A Lifetime ISA application may be made on an individual’s behalf—
(a) if the individual is resident in England and Wales—
(i) pursuant to an order under section 16(2)(a) of the Mental Capacity Act 2005(a); or
(ii) by a deputy appointed under section 16(2)(b) of that Act; or
(b) if the individual is resident in Scotland or Northern Ireland and is suffering from a mental disorder, by a parent, guardian, spouse, civil partner, son or daughter of the individual.
(10) In paragraph 8(b) “mental disorder” has the meaning given by, in Scotland section 328 of the Mental Health (Care and Treatment) (Scotland) Act 2003(b) or, in Northern Ireland, Article 3 of the Mental Health (Northern Ireland) Order 1986(c).

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/562893/LifetimeISA_regs_7.pdf

Ed-1

fun4everyone wrote: »

Thanks jj, do you have a cite for this? I have read nothing that talks about such a restriction. All the material I have read says LISA can be used for two reasons, retirement and buying first property. I have not read about previous homeowners under 40 not being allowed a LISA.

You can have a Lifetime ISA if you are a homeowner as long as you are under 40 when you open your first LISA and you meet all other eligibility requirements specified in the draft regulations above.

fun4everyone

Ed-1 wrote: »

You can have a Lifetime ISA if you are a homeowner as long as you are under 40 when you open your first LISA and you meet all other eligibility requirements specified in the draft regulations above.

Thanks that is what I thought. Hoping for more clarity in the Autumn Statement.

MARTYM8`

I think this highlights a flaw in all this.

If I was the government I would rather more concerned about someone aged over 40 who isn't a home owner - as the state will have to pay their rent in retirement and fund their social care as they wont have an asset to pay for it.

The fact someone may have owned a home in the past - but fell on hard times or sold it at a loss due - is rather academic in my eyes.

Perhaps instead of focusing aid on younger people perhaps the government should be more worried about over 40s who aren't home owners. Cos they are going to become very costly people one day if that doesn't change.

All seems very arbitrary. You are 39 - you get this top up for 11 years until 50. You are 40 and get nowt?

Perhaps the government could better use the money to deliver more affordable homes instead of gimmicks that will deliver lots of money to the well off middle classes who can already afford to save more? Do we really need state handouts to those who can afford to save £4k a year and pay £450k for a home when cutting benefits for the poor and disabled?

bigfreddiel

LISAs are not a good deal, in no way can they compare to a pension. Open a SIPP and get a load of free money from the government now, not in some time in the future.

That extra money now will grow till you can access it at 55 or later..

A SIPP mocks spots off a LISA so that it's a no brainer.

Cheers fj

veryintrigued

jimjames wrote: »

The info I've seen says you are excluded from a LISA .....if you have owned a property before

That's completely wrong JJ as I understand it - can you share this info?