LISA and Inheritance

eskbanker

singleplayer said:

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.

If you own a stake in a property (anywhere) then you're no longer a first time buyer as far as LISA is concerned, so can't use it to support a property purchase, unless you do so while suffering the 25% withdrawal penalty (from 6 April, 20% for the next two weeks).

If you don't want to lose that chunk, your only option is to retain the LISA money until you reach 60, but if you do this then you'd be well advised to use a S&S LISA rather than a cash one that's likely to lose real-terms value to inflation over the long term.

singleplayer

eskbanker said:...

If you own a stake in a property (anywhere) then you're no longer a first time buyer as far as LISA is concerned, so can't use it to support a property purchase, unless you do so while suffering the 25% withdrawal penalty (from 6 April, 20% for the next two weeks).

If you don't want to lose that chunk, your only option is to retain the LISA money until you reach 60, but if you do this then you'd be well advised to use a S&S LISA rather than a cash one that's likely to lose real-terms value to inflation over the long term.

Thank you.

It is a bit sad to some people just can not have this because  "buyer" and "owner" has got the same meaning and before someone has 18 years old, she/he is just a children and parents made decisions. I would absolutly understand that if someone has got a 100% ownership, in that case we could say it is the only owner who can be a 1st time buyer. But with shared ownership you can not sell or buy that you partly have.

I do not have much money in the LISA just in this case that was unnecessary. I will check   S&S LISA. Thanks again.

singleplayer

.... it is the only owner who can not be a 1st time buyer...

Albermarle

eskbanker said:

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!

Didn't spot that !

tonycolchester

If you inherit a share of your parents property when they die, is there a grace period for selling that property whereby if you sell within that period, you are not breaching the Lisa rules and can still use it to buy a property without losi g the bonus (and more)? 

JGB1955

tonycolchester said:

If you inherit a share of your parents property when they die, is there a grace period for selling that property whereby if you sell within that period, you are not breaching the Lisa rules and can still use it to buy a property without losi g the bonus (and more)? 

Presumably, if the house is sold by the executors and the proceeds then distributed to the beneficiaries, those beneficiaries never owned the property.  If the beneficiaries names appear on the deeds at any time,  then I think it's too late.