Am I still a first time buyer after a property donation?

besjkdmsabhriesmnshsj

Hi,

I am looking to buy my first property in England. I understand there are a number of advantages as a first time buyer (stamp duty, Lifetime ISA etc.). However, a family member has donated (not inherited, not sold) to me a property outside the country (Eastern Europe). I’m concerned that I may not be classified as a first time buyer anymore and given the value of the other property I might actually be in a worse position now?

Any advice?

bairn7

HMRC's view (for SDLT purposes) is "A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.).

I suspect this will be similar for other purposes also, sadly.

bairn7

This suggests as much...

https://mortgages.firstdirect.com/mortgage-guides/first-time-buyers/am-i-a-first-time-buyer

Sea_Shell

Just as an aside... how would HMRC know whether you own, or have owned property abroad? Is there a central register?

foxy-stoat

Sea_Shell wrote: »

Just as an aside... how would HMRC know whether you own, or have owned property abroad? Is there a central register?

They rely on folk not telling porkies to their solicitor when they are asked the question. If they did they would be committing tax fraud which is very serious - but as you say, how would they know or ever find out. If the OP wants to save money on their stamp duty FTB discount and second property tax then on their own head be it.

kingstreet

You would get a Nationwide FTB mortgage product as you have not had a mortgage in the last three years.

davidmcn

Sea_Shell wrote: »

Just as an aside... how would HMRC know whether you own, or have owned property abroad? Is there a central register?

In the same way that they don't "know" many other things you declare in a self-assessment style, they just reserve the right to come down on you like a ton of bricks if and when they discover you were fibbing.

But if they were to take an interest, it's likely they could uncover evidence via land registers, transfers of money etc.

Sea_Shell

The terminology is misleading though, refering to first time BUYERS, rather than OWNERS.

We see that, by how many time it gets asked about on here.

Someone, could, quite innocently say no, depending on how the question is phrased or asked, if they, say, inherited property.

Like you say....it's a massive risk to chance your arm that you won't be investigated!!!

DigForVictory

Looking at the Help to Buy eligibilty info, any property could debar you from Help to Buy.

Does all depend on self certification though, doesn't it?

kingstreet

DigForVictory wrote: »

Looking at the Help to Buy eligibilty info, any property could debar you from Help to Buy.

Does all depend on self certification though, doesn't it?

That does not apply to Help To Buy - Equity Loan where homemovers can use the scheme as long as the HTB property is the only one they will own from completion.

At least it is until April 2021 when it changes to FTB only...