Have a Lifetime ISA - do I actually count as first time buyer? 23 November 2021 at 9:45PM in ISAs & tax-free savings 6 replies 153 views

JamieFlint

Hello,
Hope someone can understand this and help as I'm getting myself more and more confused!

I currently have a Lifetime ISA that I've been saving into for a couple of years but now concerned I may not be able to use it to buy a house. 

My Dad passed away when I was 14 and in his will he stated that me and my Mum were able to stay in the house for 5 years. Then, the house had to be sold and the proceeds were split between us and my half siblings.  

Would this affect my first time buyer status and therefore prevent me being able to use a Lifetime ISA towards it? 

masonic

Who owned the house during the 5 years prior to its sale? It doesn't sound likely you were a part-owner of the property, in which case it wouldn't affect your FTB status. You should confirm that.

Alexland

Yes if you only ever recieved some of the cash proceeds from the sale then you never owned the property so you are still a first time buyer.

IanManc

Until the house was sold the house remained part of your late father's estate. You weren't the owner of it, even in part.

After 5 years the executor of your father's estate will have sold the house, and you inherited part of the proceeds of sale.

At no point were you the owner of the house. It was owned by your father, then was owned by his estate, and then it was sold.

JamieFlint

masonic said:

Who owned the house during the 5 years prior to its sale? It doesn't sound likely you were a part-owner of the property, in which case it wouldn't affect your FTB status. You should confirm that.

I think you're right, as IanManc says I think that the house was owned by his estate and then sold so I wasn't a part-owner. Thanks! 

JamieFlint

IanManc said:

Until the house was sold the house remained part of your late father's estate. You weren't the owner of it, even in part.

After 5 years the executor of your father's estate will have sold the house, and you inherited part of the proceeds of sale.

At no point were you the owner of the house. It was owned by your father, then was owned by his estate, and then it was sold.

Thank you for explaining this so clearly, you've cleared this worry up for me 

jimjames

JamieFlint said:

IanManc said:

Until the house was sold the house remained part of your late father's estate. You weren't the owner of it, even in part.

After 5 years the executor of your father's estate will have sold the house, and you inherited part of the proceeds of sale.

At no point were you the owner of the house. It was owned by your father, then was owned by his estate, and then it was sold.

Thank you for explaining this so clearly, you've cleared this worry up for me 

Also bear in mind that a child cannot own property in the UK so it would have needed to be a trust setup which you'd have known about if it had happened.