First time buyer ambiguity

tempenum

Hi all!

I am married and own a home. My wife‘ name is not on the mortgage or the property we live in. My wife never bought or inherited a property. She is a first time buyer before our wedding.
My wife got a job in a different city and wants to explore that while I have to continue living in my home close to my place of work. She wants to buy a property to live in during weekdays while she works in the different city.

1. Can she use her life time isa and also get the new stamp duty waiver as a first time buyer? 

2. In the event I sell my home and move to her place (and work remotely from home), and we both buy a new main home, will she be classed as a first time buyer in the joint purchase?

Please help me understand these complications. Many thanks. 

[Deleted User]

tempenum said:

Hi all!

I am married and own a home. My wife‘ name is not on the mortgage or the property we live in. My wife never bought or inherited a property. She is a first time buyer before our wedding.
My wife got a job in a different city and wants to explore that while I have to continue living in my home close to my place of work. She wants to buy a property to live in during weekdays while she works in the different city.

1. Can she use her life time isa and also get the new stamp duty waiver as a first time buyer? 

2. In the event I sell my home and move to her place (and work remotely from home), and we both buy a new main home, will she be classed as a first time buyer in the joint purchase?

Please help me understand these complications. Many thanks. 

1. Your wife can use her LISA but she won't be eligible for the FTB SDLT relief and will face the higher rate of SDLT because you own a property and will continue to own it after she purchases her pied a terre.

2. In terms of SDLT the FTB SDLT relief won't apply because you're not a FTB but the higher rate won't apply providing you sell your property prior to the purchase of the new property.  Your wife will still be able to use her LISA.

tempenum

Lover_of_Lycra said:

tempenum said:

Hi all!

I am married and own a home. My wife‘ name is not on the mortgage or the property we live in. My wife never bought or inherited a property. She is a first time buyer before our wedding.
My wife got a job in a different city and wants to explore that while I have to continue living in my home close to my place of work. She wants to buy a property to live in during weekdays while she works in the different city.

1. Can she use her life time isa and also get the new stamp duty waiver as a first time buyer? 

2. In the event I sell my home and move to her place (and work remotely from home), and we both buy a new main home, will she be classed as a first time buyer in the joint purchase?

Please help me understand these complications. Many thanks. 

1. Your wife can use her LISA but she won't be eligible for the FTB SDLT relief and will face the higher rate of SDLT because you own a property and will continue to own it after she purchases her pied a terre.

2. In terms of SDLT the FTB SDLT relief won't apply because you're not a FTB but the higher rate won't apply providing you sell your property prior to the purchase of the new property.  Your wife will still be able to use her LISA.

Thanks for responding but I am not sure I totally understand your response. 

In both cases, you mention that my wife can use her life time isa, so that means she is definitely classed as a first time buyer. 

However, I do not understand why she cannot get the first home SD waiver in the first case.
In the second case, When we buy a home together, is the SD waiver applicable to both of us as I sold our main home?

greatcrested

The term 'First Time Buyer' does not have a universal definition.

HMRC will not define her as a FTB so far as SDLT is concerned, as they consider married couples as a single unit. You (married couple) already own a property.

LISA is different, hence she can use it.

[Deleted User]

tempenum said:

Lover_of_Lycra said:

tempenum said:

Hi all!

I am married and own a home. My wife‘ name is not on the mortgage or the property we live in. My wife never bought or inherited a property. She is a first time buyer before our wedding.
My wife got a job in a different city and wants to explore that while I have to continue living in my home close to my place of work. She wants to buy a property to live in during weekdays while she works in the different city.

1. Can she use her life time isa and also get the new stamp duty waiver as a first time buyer? 

2. In the event I sell my home and move to her place (and work remotely from home), and we both buy a new main home, will she be classed as a first time buyer in the joint purchase?

Please help me understand these complications. Many thanks. 

1. Your wife can use her LISA but she won't be eligible for the FTB SDLT relief and will face the higher rate of SDLT because you own a property and will continue to own it after she purchases her pied a terre.

2. In terms of SDLT the FTB SDLT relief won't apply because you're not a FTB but the higher rate won't apply providing you sell your property prior to the purchase of the new property.  Your wife will still be able to use her LISA.

Thanks for responding but I am not sure I totally understand your response. 

In both cases, you mention that my wife can use her life time isa, so that means she is definitely classed as a first time buyer. 

However, I do not understand why she cannot get the first home SD waiver in the first case.
In the second case, When we buy a home together, is the SD waiver applicable to both of us as I sold our main home?

As @greatcrested says, there isn't a universal definition of a FTB.  Your wife is eligible to use her LISA to purchase a home although actually now I come to think of it she wouldn't be able to use it for your first scenario as the property has to be, "on completion the property will be used by my client as their only or main residence," which it wouldn't be because of the home you already share.

Source: Model Conveyancer Declaration

The reason your wife wouldn't be eligible for the FTB SDLT relief in scenario one is because , "relief is not available if the purchase is of an additional dwelling, which is liable to the higher rates of SDLT under schedule 4ZA FA 2003," as you will still own a property.  In fact SDLT relief for FTB is only available to FTB purchasing their main home which your wife would be doing anyway.
Source: Stamp Duty Land Tax: Relief for first time buyers

happysellerbuyer

Is she buying on her own.