Lifetime ISA home buy

Legendz

My father-in-law passed away a year ago in South Africa and left his house to my husband and his sister but my mother-in-law has the usufruct for the remainder of her life. So even though my husband’s name is on the deed of (50%) the property, he cannot go and live there or take out a mortgage on the property. My MIL is 72 and healthy and will probably be around for many years to come and even when she passes, only 50% of the property belongs to my husband. Also, they have a family farm that no one lives on, the fields are rented out to neighbouring farms. The farm is in a limited company with my MIL owning two thirds and my father-in-law owned the remaining third. When he passed away, he left his share (1/3) to my husband. There is a house on the farm but no one lives in it. It’s used by the family for short breaks to “get away from it all” and it’s been kept almost like a museum of when the great great grandparents lived there going back to the late 1800’s. No mobile reception, no electricity, in the middle of nowhere will the closest neighbours living 30 miles away. My point being that it’s not fit for living in permanently and also my husband only owns 1/3 of the limited company. Both these properties are in another country and my husband doesn’t have the right to live in either even though his name appears on the deeds. Also, we do not want to move to South Africa, we are British citizens and have lived here for 15 years and brought our children up here. So when it comes to the Lifetime ISA, would this means that my husband can’t use the ISA for the purpose of buying our first home? I know the rules mention having your name on other deeds but in this case having his name on those deeds means nothing to us, not in terms of money or having a place to live. I have opened one for myself but it will obviously boost our chances of ever getting on the property ladder if we could both have one. Any advice would be greatly appreciated!

masonic

Legendz said:

So when it comes to the Lifetime ISA, would this means that my husband can’t use the ISA for the purpose of buying our first home?

Correct, not without paying the withdrawal penalty or waiting until he is age 60. You mention that the farm is in a limited company, so that would mean the company owns it, and would therefore not prevent your husband having FTB status. Owning or part owning a company that itself owns residential property does not make the company owner a property owner. However, the father in law's property that he has inherited a share in would prevent him from having FTB status. It does not matter that his mother in law has retained the right to remain in the property, it is ownership or part-ownership that matters.

Legendz

Just to add, the property hasn’t been transferred yet and solicitor said it might take 4-6 years (Africa time 😬) for the will to be finalised. So nothing on his name yet. Could he, before the transfer happens, instruct the solicitor to transfer his share of the house to his mum in order for his name not to be on that deed? Is this perhaps a way around it?

masonic

Legendz said:

Just to add, the property hasn’t been transferred yet and solicitor said it might take 4-6 years (Africa time 😬) for the will to be finalised. So nothing on his name yet. Could he, before the transfer happens, instruct the solicitor to transfer his share of the house to his mum in order for his name not to be on that deed? Is this perhaps a way around it?

If he can prevent himself becoming an owner of the property (for example by refusing the inheritance), or complete a property purchase in the UK before it is transferred to him, then yes, that would be a way around it.

Legendz

masonic said:

Legendz said:

Just to add, the property hasn’t been transferred yet and solicitor said it might take 4-6 years (Africa time 😬) for the will to be finalised. So nothing on his name yet. Could he, before the transfer happens, instruct the solicitor to transfer his share of the house to his mum in order for his name not to be on that deed? Is this perhaps a way around it?

If he can prevent himself becoming an owner of the property (for example by refusing the inheritance), or complete a property purchase in the UK before it is transferred to him, then yes, that would be a way around it.

Thanks for your input, much appreciated!