LISA and Inheritance

Nathan_Burns

Hi all,
I opened a LISA as soon as it became available and transferred all of my H2B money into the account.
However, during the last few months, it had become quite likely that I am going to inherit a property from my mother before I can use the money savid in the LISA.
As far as I am aware, if my name goes onto the deeds for the property, I can no longer use the LISA funds to buy a first house (even though the inherited house will be sold straight away)
What should I do? Is there a legal way for me to inherit the property and sell it without my name being on the deeds (and 'voiding' the LISA)? Or is there a way that the house can be sold, and the money comes to me?
The other consideration is it is not guaranteed that I will inherit the house before I buy my own, and so I don't want to move my money out of the LISA, becuase I will struggle to raise enough money to get a deposit otherwise. (If that makes sense!?)
Any advice would be hugely appreciated. Please ask as many questions as needed!

Tom99

[FONT=Verdana, sans-serif]Do you mean you are going to inherit the property under your mother's will?

[/FONT] [FONT=Verdana, sans-serif]If so, on her death the property will pass to her estate and providing the executors of her estate sell the property and do not transfer the legal or equitable interest to you, but just give you the net proceeds, you will still be a 1st time buyer.

[/FONT] [FONT=Verdana, sans-serif]That applies even if you are an executor as well as a beneficiary.[/FONT]

Nathan_Burns

Thanks for that information Tom, that does make sense.

I have never had any experience with wills and have very little knowledge of them really, but I guess what you are saying is that if my mothers property is left of part of her estate, which is to be used to pay debts etc, and the house were sold, with a % of the remainder left to me, that is legal and doesn't impact the LISA.

Thanks!

rq9292

Tom99 wrote: »

[FONT=Verdana, sans-serif]Do you mean you are going to inherit the property under your mother's will?

[/FONT] [FONT=Verdana, sans-serif]If so, on her death the property will pass to her estate and providing the executors of her estate sell the property and do not transfer the legal or equitable interest to you, but just give you the net proceeds, you will still be a 1st time buyer.

[/FONT] [FONT=Verdana, sans-serif]That applies even if you are an executor as well as a beneficiary.[/FONT]

Hi Tom

I am in a similar situation to the OP in that a share of a property has been left to me when my Grandad died last year. However, we have not executed the will so it remains part of his estate at the moment.

Are you saying that I only lose my first time buyer at the point when/if we choose to transfer the deeds to my name? If so, could you provide some sort of source for this information? I have read all the info on the LISA I could find and have not found a clear definition of when the first time buyer status would be ended in my scenario.

I have also noted I could save a lot on stamp duty if I still count as a first time buyer so if what you say is true then it is very good news for me!

Tom99

Nathan_Burns wrote: »

Thanks for that information Tom, that does make sense.

I have never had any experience with wills and have very little knowledge of them really, but I guess what you are saying is that if my mothers property is left of part of her estate, which is to be used to pay debts etc, and the house were sold, with a % of the remainder left to me, that is legal and doesn't impact the LISA.Thanks!

"In order to count as a first time buyer, a purchaser must not, either alone or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world.
This includes previous acquisitions by inheritance or gift, or by a financial institution on behalf of a person under an alternative finance scheme."

With an inherited dwelling you do not acquire a major interest until the beneficial ownership passes to you. This normally only happens after a specific transfer of ownership to the beneficiaries. It makes no difference whether the property was mortgaged or not.
If a property is to be sold then it is normally done whilst the estate is still the owner. Usually a property to be sold would only be transferred to the beneficiaries first if CGT was involved and it would save tax to use more than one annual allowance.

Robin9

Unless the will says -"I leave 20 Acacia Avenue to Nathan " it is usual that the house be sold and receive cash from the estate.
Remember that the estate can easily take 12 months to complete.

Zorillo

The value you of the house you inherit is going to comfortably outweigh the 6.25% penalty you'll receive for taking your money back out of the LISA?

rq9292

Tom99 wrote: »

"

With an inherited dwelling you do not acquire a major interest until the beneficial ownership passes to you. This normally only happens after a specific transfer of ownership to the beneficiaries.

That is good to hear. Can you send a link so that I can read up on this some more? So far I have not come across a single source that even mentions specifically when an interest is acquired in an inherited property.

singleplayer

Hi!

I would like to ask your advice to can make the most of from my newly make LISA. or just leave it?!

First of all I just read an article where was an advice to open a LISE before april and before you will be 40 years old. So I quickly open one account. I have never bought a home in England or other else - mean no pay money for it. But after I read an other full article :

"

A first-time buyer is someone who's NEVER owned a property anywhere in the world before

If you've owned a property before – whether inside or outside the UK – you can't use a LISA towards a home purchase.

This includes owning a property (or a share of one) that you inherited, even if it was sold straightaway and you didn't live there. If you owned a company or had a trust that owned residential property that you are (or were) able to live in, you're also not considered a first-time buyer.

"

But other hand:

1: My grandparent died and I partly (50%) inherited their home. That has been sold a few year ago.

2: My parents divorced and my mother to resolve the financial conflict simply gifted me and my sister with her 50% of the family home. So I am an owner in 25%. It was also just a gesture, I am an owner on paper but as my father live ther I will not sell that house.

Both ownership of a home are in Hungary.

So the question what can I do with this LISA now? Is it worth to save there? Is it any way to buy a first home in England?

As I read an other article where it said if you have good pension provider your money probably worth more than if you just simply put through in your LISA.

I am happy to read any advice or comment with similar situation.

Thanks.

Albermarle

rq9292 said:

Tom99 wrote: »

"

With an inherited dwelling you do not acquire a major interest until the beneficial ownership passes to you. This normally only happens after a specific transfer of ownership to the beneficiaries.

That is good to hear. Can you send a link so that I can read up on this some more? So far I have not come across a single source that even mentions specifically when an interest is acquired in an inherited property.

But you haven't acquired an interest in the property , so it does not count/matter, as explained above.

eskbanker

Albermarle said:

rq9292 said:

Tom99 wrote: »

"

With an inherited dwelling you do not acquire a major interest until the beneficial ownership passes to you. This normally only happens after a specific transfer of ownership to the beneficiaries.

That is good to hear. Can you send a link so that I can read up on this some more? So far I have not come across a single source that even mentions specifically when an interest is acquired in an inherited property.

But you haven't acquired an interest in the property , so it does not count/matter, as explained above.

The post you're replying to celebrates its second birthday today!