Can this situation still counter as first time buyer?

taihai

Hello,

If a house is bought under two persons' names (e.g. property bought as a couple) and both never had a house before, does it mean that now both will not be counted as a first-time buyer anymore? 

If so, that is a bit 'wasteful' in a way because it could have been that both could buy two different properties separately as a first-time buyer and they could enjoy first time buyer's benefits separately? 

Best regards,

user1977

Yes. And anyway, it wouldn't work if they're married, and they're only going to be able to pull that trick if either of them can afford to buy in their sole names without the other being at least a beneficial owner. Which generally isn't what happens anyway.

MaryNB

Neither would not be counted as a first time buyer for SDLT purposes when they buy their next property. Also if an FTB is buying with non FTB full SDLT still applies. 

Some lenders may consider you an FTB if several years have passed since you last owned a property.

ele_91

Yes it does. But presumably by buying together you are getting a more valuable house so the saving on stamp duty (presuming this is what you mean by ‘first time buyer benefits’) as a % will be similar. 

Barny1979

Nope, both are not considered first time buyers if they have been named on the deeds.

TBG01

MaryNB said:

Some lenders may consider you an FTB if several years have passed since you last owned a property.

They may class as you as a FTB but you won't be exempt from paying Stamp Duty. They have no say in that 

taihai

ele_91 said:

Yes it does. But presumably by buying together you are getting a more valuable house so the saving on stamp duty (presuming this is what you mean by ‘first time buyer benefits’) as a % will be similar. 

Thanks. Apart from Stamp Duty, I am also thinking things like Life ISA where you get to spend your Life ISA to buy your first house if you are a first time buyer. 

[Deleted User]

taihai said:

ele_91 said:

Yes it does. But presumably by buying together you are getting a more valuable house so the saving on stamp duty (presuming this is what you mean by ‘first time buyer benefits’) as a % will be similar. 

Thanks. Apart from Stamp Duty, I am also thinking things like Life ISA where you get to spend your Life ISA to buy your first house if you are a first time buyer. 

What difference does it make if you spend your LISA jointly buying with your partner now or funding the purchase of your next home? 

julicorn

taihai said:

If so, that is a bit 'wasteful' in a way because it could have been that both could buy two different properties separately as a first-time buyer and they could enjoy first time buyer's benefits separately? 

Not really, considering you can afford a more expensive property on joint incomes. 

E.g. If each of you individually can afford to buy a house for £150k (let's say £30k saved + £120k mortgage), then together you can presumably afford a £300k property. 

Stamp duty saved when buying 2 £150k properties as first time buyers: £1,000 (£500 on each property)
Stamp duty saved when buying 1 £300k house as a first time buyer: £5,000

Salemicus

As far as all government schemes are concerned (stamp duty, LISA, HTB, etc), being a first time buyer is like being a virgin. If you have ever dabbled, you lost that status forever, even if it was brief and unsatisfactory and you don't think it's fair to count it. If you have to ask, you aren't one.

As far as lenders, builders, etc, are concerned, being a first time buyer is like being a doctor. Standards vary dramatically, and some people get to call themselves that on the thinnest of reeds, but it's only for that narrow purpose. You might get that introductory mortgage rate, but you can't get reduced SDLT, just like calling yourself Dr Smith because of your DPhil may work socially, but won't let you write prescriptions. 

grumiofoundation

taihai said:

ele_91 said:

Yes it does. But presumably by buying together you are getting a more valuable house so the saving on stamp duty (presuming this is what you mean by ‘first time buyer benefits’) as a % will be similar. 

Thanks. Apart from Stamp Duty, I am also thinking things like Life ISA where you get to spend your Life ISA to buy your first house if you are a first time buyer. 

As above you can both use lifetime ISA towards one purchase.
So what is the advantage if using twice? (To potentially head off possible response you can't use LISA towards a BTL). 

Surely you would just end up with two houses worth ~the same as the one you could buy together since each house would be bought with a mortgage using one salary.