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Are you a first-time buyer when lived in...

inherited house, 50% owned by another sibling.

Once sold you use your half to buy new property?

If so, can you put money into isa to claim 25% increase when buy your house.

Comments

  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    No. xxxxxx
  • cc120
    cc120 Posts: 122 Forumite
    Part of the Furniture Combo Breaker
    Slithery wrote: »
    No. xxxxxx

    But he never bought a house previously?
  • cc120
    cc120 Posts: 122 Forumite
    Part of the Furniture Combo Breaker
    Hi badger09 you asked:
    'Did you actually inherit 50% of the house with your sibling,
    or
    was the house sold by the executor and 50% of the sale proceeds passed to you?'
    The house was left to 2 siblings, one living in house, and another not living in house who is executor. Will be sold by executor and proceeds passed to the 1 living in house.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Makes no sense.


    If the two siblings inherit 50% of the property each, how can the Executer legally sell the house and pass 100% of the proceeds to one sibling?

    Once sold you use your half to buy new property?
    Of course. Once you receivethe inheritance (from the saleof the property) you can save, invest, spend it how you wish. That means down the pub or by buying a property.
    If so, can you put money into isa to claim 25% increase when buy your house.
    Well if you spend it buying a house, you won't have it anymore- so how can you put it into an ISA?
  • jonnygee2
    jonnygee2 Posts: 2,086 Forumite
    1,000 Posts Second Anniversary Name Dropper Combo Breaker
    inherited house, 50% owned by another sibling.

    Once sold you use your half to buy new property?

    If so, can you put money into isa to claim 25% increase when buy your house.

    No, the help to buy ISA bonus is not available to people who have previously owned property.

    You will also not get first time buyer stamp duty relief.

    It all says 'first time buyer', but 'first time owner' would be a more accurate description.
  • cc120
    cc120 Posts: 122 Forumite
    Part of the Furniture Combo Breaker
    G_M wrote: »
    Makes no sense.


    If the two siblings inherit 50% of the property each, how can the Executer legally sell the house and pass 100% of the proceeds to one sibling?


    Of course. Once you receivethe inheritance (from the saleof the property) you can save, invest, spend it how you wish. That means down the pub or by buying a property.
    Well if you spend it buying a house, you won't have it anymore- so how can you put it into an ISA?
    As each have 50% has to be sold to split value, executor then passes 50% of money to other 50% holder.
    The executor has a 50% share which he of course would keep.
    Thinking of staying with a relative for a year to accrue interest on his half of the value, so can afford a better property.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Are you asking about using a Help To Buy ISA prior topurchasing the property? If so, the declaration you will need to sign says:


    I do not own, and never have owned any interest in land, whether in the United Kingdom or elsewhere, which:

    (A) is:(i) in England or Wales: (a) freehold;(b) leasehold, where the lease was originally granted for a term certain exceeding 21 years; or(c) commonhold; or(ii) in Scotland, registered or recorded, or would be capable of being registered or recorded, as a right of absolute ownership in the Land Register of Scotland or General Register of Sasines in Scotland, as applicable; or(iii) in Northern Ireland: (a)freehold; or(b)leasehold, where the lease was originally granted for a term certain exceeding 21 years; or (iv) an equivalent interest in land to the interests in land listed in paragraphs (A)(i) to(iii) above under the laws of any jurisdiction outside the United Kingdom; and

    (B) comprises a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use; and

    (C) (i) which I acquired as a purchaser by way of sole or joint ownership; or
    (ii) which entitles me to possess or occupy that land.
    https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf/


    Are you

    1) the sibling who lives in the house, or
    2) the sibling who does not?

    If 1) above, then clearly C) (ii) applies and you are no longer a FTB for the purposes of HTB ISA.

    If 2) above, and the Executer sells the property without first transferring the 50% intoyour name (such that you are not "entitled to possess or occupy that land") then you are a FTB for the purposes of HTB ISA.


    More here:

    https://www.helptobuy.gov.uk/help-to-buy-isa/who-is-eligible/
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