Help to Buy: 1st Time Buyer but eligibility being questioned as ex-partner owned a house

szyjjj

I wonder if anyone can help...
I am applying for Help to Buy but at the last minute I may be rejected as, although I have never owned a house or been named on any title/mortgage, Home England say that as I was married (divorced many years ago) and my ex owned a house, I would be considered as having an interest in the property.  This only came up as they noticed that I am "Mrs" (which incidentally wouldn't have happened to a Mr!)  
I have looked at the eligibility criteria on Help to Buy which states the definition of a first time buyer and it makes zero mention of anything like this.
Any suggestions...?

Slithery

I'm not sure what criteria Homes England use but if they're the same as HMRC use for SDLT purposes then they are correct, you aren't a first time buyer.

'First time buyer' is a misnomer. What it really means is 'first time owner'.

When you are married all assets are seen as shared no matter if your name is on the paperwork or not so in the past you did indeed have a material interest in a property.

AndyDragon

The fact you married is the problem as you had the interest in the property as you said unfortunately.  Therefore It certainly loosen like you’ve lost your first time buyer status. So, eligibility for all scheme and the improved stamp duty etc. 

It’s a bit surprising the things that stop you qualifying, like marriage, or inheritance. So you haven’t bought but the status is lost. First time buyer is a bit misleading, it’s really first time owning. You never set out to own a home but it happens

not sure what the penalties are if you hide or by accident claim the status you don’t actually have

aoleks

What does Homes England have to do with buying a house? Are you using a scheme?

user1977

aoleks said:

What does Homes England have to do with buying a house? Are you using a scheme?

Yes, Homes England administer the Help to Buy scheme.

SDLT_Geek

szyjjj said:

I wonder if anyone can help...
I am applying for Help to Buy but at the last minute I may be rejected as, although I have never owned a house or been named on any title/mortgage, Home England say that as I was married (divorced many years ago) and my ex owned a house, I would be considered as having an interest in the property.  This only came up as they noticed that I am "Mrs" (which incidentally wouldn't have happened to a Mr!)  
I have looked at the eligibility criteria on Help to Buy which states the definition of a first time buyer and it makes zero mention of anything like this.
Any suggestions...?

The relevant definition of "First Time Buyer" seems to be that in Schedule 6 to the Homes England Help to Buy Equity Loan Funding Administration Agreement which can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/927110/201015_FINAL_HTB_Standard_Funding_Admin_agreement.pdf 

The definition concerns whether a person owns or has ever owned an interest in residential land which entitles them to possess or occupy that land.  There is nothing in that which disqualifies someone as a first time buyer on account of a former spouse having owned a house.

I reject the suggestions made by other posters that in marriage assets are automatically treated as shared.  Yes, they might be taken into account in a divorce, but that does not make them jointly owned!

MalMonroe

Hi, this is the information you need -

https://www.ownyourhome.gov.uk/scheme/help-to-buy-2021-2023/

If you look at the section headed 'frequently asked questions' and then look under 'what is the eligibility criteria' (which should read 'what ARE the eligibility criteria' (sorry but I hate grammatical errors) - you will see that because you lived with someone who owned a property you will not be classed as a first time buyer. 

I don't think anything has anything to do with the fact that someone may have noticed that you are a Mrs. Their checks are far more thorough than that.

You may be able to get help and advice from a mortgage broker? There's even one on this very site -

https://forums.moneysavingexpert.com/discussion/6190962/mortgage-broker-ask-me-anything/p521

SDLT_Geek

MalMonroe said:

Hi, this is the information you need -

https://www.ownyourhome.gov.uk/scheme/help-to-buy-2021-2023/

If you look at the section headed 'frequently asked questions' and then look under 'what is the eligibility criteria' (which should read 'what ARE the eligibility criteria' (sorry but I hate grammatical errors) - you will see that because you lived with someone who owned a property you will not be classed as a first time buyer. 

I don't think anything has anything to do with the fact that someone may have noticed that you are a Mrs. Their checks are far more thorough than that.

You may be able to get help and advice from a mortgage broker? There's even one on this very site -

https://forums.moneysavingexpert.com/discussion/6190962/mortgage-broker-ask-me-anything/p521

I believe you have misunderstood the guidance!

It does not say that someone is prevented from being a first time buyer because of a former spouse having owned a property.

AndyDragon

SDLT_Geek said:

It does not say that someone is prevented from being a first time buyer because of a former spouse having owned a property.

I am revising my thoughts too. I am wondering if never named in joint mortgage or deeds and never (in)directly contributed to house (like paying to upkeep or mortgage) and didn’t benefit from the sale of the house on divorce that it might therefore mean as you say, not a first time buyer

but I can see why it’s being questioned as it’s a lot of proof needed

They don’t make it easy do they? I guess given it loses the government money they like to show they are helping whilst controlling eligibility 

K_S

@szyjjj I would second what SDLTGeek has said above, and suggest that the Homes England person you spoke to has either misunderstood the situation (considering you to be currently married to or co-habiting with a non-FTB) or got it wrong.

I must add that even though I'm a broker, I'm no authority on how an FTB is defined under the new HTB scheme and haven't come across a similar scenario to your's so might well be wrong.