Is my son a first time buyer?

LAURA123

My son is due to inherit a house when he turns 30 (he is currently 19), which is currently held in trust. If he buys his first house before he inherits, is he technically a first time buyer and as such eligible to apply for a help to buy ISA? Any ideas?

jonnygee2

I think he probably has an 'interest in land' so would not be eligible.

Anyway here's the form https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf which details the requirements.

Tom99

Will it not depend on the exact nature of the trust?
If its a bare trust, whereby the trust just holds the asset for your son, then your son is effectively already the beneficial owner of the property, though not the legal owner.
In which case he would not be a FTB
But the fact that the trust can withhold transferring the property to your son until he is 30 must mean, I think, that the trust is not a bare trust and therefore the beneficial ownership is not transferred to him until the trust is permitted to do so by the Trust Deed.

LAURA123

Thank you, I have checked and it is a bare trust.

xylophone

it is a bare trust.

Then he is the beneficial owner of the property.

And as he is over 18, he has the legal right to access and control of his asset?

https://www.boltburdon.co.uk/yourlife/wealth-planning/trusts/bare-trust/

jonnygee2

One thought is that actually anyone can apply for a HTB Isa. The interest rates are okay even without the bonus.

If the answer cannot be fully determined he can always get one as a 'just in case'. When it comes to buy the house the conveyncer will be able to advise on eligibility for the bonus.

LAURA123

Thanks, according to the trust he can't access ithe capital (assets) until he is 30 although he can benefit from the revenue before then.
I'll check out the HTB ISA