Does a deed of trust impact first time buyer status

DocDocGoose

I’m buying a property and my partner wants to contribute to deposit. We’ll protect this with a deed of trust and he won’t be on the deeds or mortgage. He will live in the property. Will this lose him his first time buyer status?

davilown

Are you buying with a mortgage and if so, do the mortgage company know he’s lent you the money?

HopeAndDriftWood

I was advised that I'd have a beneficial interest in the property if I did this; and that would use my first time buyer status. 

In the end, it didn't matter - we got married so I lost the status that way instead - but I'd check with your solicitor. 

Pixie5740

DocDocGoose said:

I’m buying a property and my partner wants to contribute to deposit. We’ll protect this with a deed of trust and he won’t be on the deeds or mortgage. He will live in the property. Will this lose him his first time buyer status?

In terms of FTB relief for SDLT, HTB ISA and LISA your partner having a beneficial interest in the property would take his FTB virginity. 

That’s assuming you can find a lender willing to accept part of the deposit coming from someone not on the mortgage, who will be living in the property and with a documented beneficial interest. If you can finder a lender there is a very high probably your partner will be asked to sign a document declaring he has no interest in the property whatsoever. 

canaldumidi

This may be an unfair assumption, but is the OP perhaps planning not to inform the mortgage lender of the partner's deposit, or the Deed of Trust?

In normal circumstances, the solicitor would act for both buyer and lender, but if a different solicitor drew up the DofT, and the deposit just appeared in buyer's account.......?

Gavin83

canaldumidi said:

This may be an unfair assumption, but is the OP perhaps planning not to inform the mortgage lender of the partner's deposit, or the Deed of Trust?

In normal circumstances, the solicitor would act for both buyer and lender, but if a different solicitor drew up the DofT, and the deposit just appeared in buyer's account.......?

They’ll want to know where the money came from. They aren’t just going to ignore a large sum of money appearing from no where that’s contributing to the deposit.

Besides, the above is starting to get dangerously close to fraud. If you’re going to that length to hide something it’s probably safe to assume it’s dodgy.