LISA eligibility question

Conzed97

Hi there,

I had a look but couldn't find this covered elsewhere so hoping someone can help me.

My grandfather passed away a few years ago and left some flats to a discretionary trust, the trustees of which are my aunties.

My cousins and I are the beneficiaries of this trust. But every decision taken with these flats is administered by the trustees, we don't have any claim to the income or what happens to the properties. Once they are sold or start earning money through rent, that will then either be filtered to a fund or to us directly (at the discretion of the trustees), so I wanted to know if this would affect my eligiblity for things such as a LISA or my general first time buyer status?

Any help appreciated, thanks in advance!

masonic

What name or names appear on the title deed of the properties? It might also be helpful to check the registered owner at the Land Registry: https://eservices.landregistry.gov.uk/eservices/FindAProperty/view/QuickEnquiryInit.do?id=p_search_link

Conzed97

The trustees are named on the land registry, mine and my cousin's names don't appear anywhere. The trustees have full control over the income and will "decide" to filter it through to us as and when appropriate. I'm just worried that HMRC will view it as a beneficial interest in a property even though it is the decision of the trust to give that money to us...

masonic

The legislation is quite clear that it is a freehold, leasehold or commonhold interest that counts, and from what you say the trustees are the legal owners and you are just beneficial owners. So the trust will protect your FTB status.

See definition of "residential property owner" here: https://www.legislation.gov.uk/ukdsi/2017/9780111154618

Conzed97

Thanks Masonic, as someone who is lost on such things a clear answer is very much appreciated!