Lisa - specific circumstances

Sebastien

Hi everybody,

I would like to open a LISA account in order to use it along the 25% government bonus when buying ny first house. However my situation is a bit specific so I wanted to share it with you to see if I really fit the criteria.
I'm French and inherited couple of months ago 2 pieces of farmland from my grandparents only for few weeks before I sold them all to a farmer, so he can put he cows on it. I've not inherited from the farmhouse so actually I've never owned a house before.
To get the government 25% bonus, I need to be a first time buyer but after checking on multiple websites, the definition is a bit confusing, as some refers it in terms of any property ownership and some as only the property you could live in.
What do you think, am I considered a first time buyer ?

Thank you,
Seb

[Deleted User]

Sebastien wrote: »

Hi everybody,

I would like to open a LISA account in order to use it along the 25% government bonus when buying ny first house. However my situation is a bit specific so I wanted to share it with you to see if I really fit the criteria.
I'm French and inherited couple of months ago 2 pieces of farmland from my grandparents only for few weeks before I sold them all to a farmer, so he can put he cows on it. I've not inherited from the farmhouse so actually I've never owned a house before.
To get the government 25% bonus, I need to be a first time buyer but after checking on multiple websites, the definition is a bit confusing, as some refers it in terms of any property ownership and some as only the property you could live in.
What do you think, am I considered a first time buyer ?

Thank you,
Seb

If you have owned a property or had a share of you don't qualify. Was there property on the land?

MDMD

_shel wrote: »

If you have owned a property or had a share of you don't qualify. Was there property on the land?

It doesn’t matter if there was property on the land. If you own land (or have ever owned) anywhere in the world you don’t qualify

The guidance is here
https://lifetimeisa.campaign.gov.uk/#withdrawing_for_your_first_home
It if you click on the “read guidance” link then Click on “full definition” here
https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#998e24ea-e1f7-648f-8ce9-ff0000ad17aa

Which takes you to HTB guidance but it’s the same definition
https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf/

[Deleted User]

MDMD wrote: »

It doesn’t matter if there was property on the land. If you own land (or have ever owned) anywhere in the world you don’t qualify

The guidance is here
https://lifetimeisa.campaign.gov.uk/#withdrawing_for_your_first_home
It if you click on the “read guidance” link then Click on “full definition” here
https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#998e24ea-e1f7-648f-8ce9-ff0000ad17aa

Which takes you to HTB guidance but it’s the same definition
https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf/

ahh thanks I didn't realise land counted.

bowlhead99

_shel wrote: »

If you have owned a property or had a share of you don't qualify. Was there property on the land?

MDMD wrote: »

It doesn’t matter if there was property on the land. If you own land (or have ever owned) anywhere in the world you don’t qualify

Shel was correct. If the land in which you had an interest 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", you would basically be considered to have already owned residential property at some point in your life already, and so the government does not want to give you free money towards getting your first residential property, because the home you plan to buy won't be the first residential property that you have owned.

If the land was just a field or road or car park, or some farmland with a barn or stables on it, you have not been a residential property owner and can use the scheme to make a penalty-free withdrawal from your LISA and buy one within the rules of the scheme.

MDMD is incorrect, having tried to point you to the definition but then not properly read the definition - only leg A of the necessary criteria A+B+C - before telling you what they think the answer is.

You would have been an owner of an interest in land capable of registration which was freehold, long leasehold or commonhold or overseas equivalent, and entitled to occupy it, but if it didn't have a residential building on it, you are not going to be considered to have been a previous owner of residential property. To be barred from using the scheme, a building on the land would need to have been a 'dwelling' or in the process of being converted into one - a home for people, not a home for cows.

_shel wrote: »

ahh thanks I didn't realise land counted.

Land on its own doesn't count. Land with residential property on it counts, and the OP didn't get the farmhouse, only some farmland.

Sebastien

Thank you guys for your response
Yes I've only inherited the farmland, no house or anything was on it as it's not even possible to build any dwelling on it. The soil is just too bad quality.
So land on it's own doesn't count then and I would be eligible for it. Is that right ?

Sebastien

By the way, the land was in France, not in the Uk

bowlhead99

Sebastien wrote: »

So land on it's own doesn't count then and I would be eligible for it. Is that right ?

Yes

Sebastien wrote: »

By the way, the land was in France, not in the Uk

The country doesn't matter. If there was a residential property on it, whatever country, you wouldn't be able to use the LISA bonus to buy one here. As there wasn't a residential property on it, whatever country, you will be ok to use the LISA to help you buy a UK property.

Sebastien

Thank you very much:beer:

diggingdude

keep hold of your documentation just to prove it wasn't residential in the future

eskbanker

diggingdude wrote: »

keep hold of your documentation just to prove it wasn't residential in the future

Just out of curiosity, are you aware of anyone ever being asked to prove that they were eligible to claim a first-time buyer bonus?

I'm conscious that there are various formal declarations involved but don't recall ever hearing of any later investigations, so I was just wondering what led to your comment, prudent though it undoubtedly is!

I imagine that anyone involved in a French property transaction will have no shortage of documentation....