Lifetime ISA and Stamp Duty Question

PeterOzzy

I own my property outright my Wife has never owned a home (never on the deeds). She set up a Lifetime ISA a few years ago from the advice of Martian Lewis. This is now worth approximately 17k with 3k of that coming from government scheme. We are selling my home and buying a house together, we only need a small mortgage of 80k and have been advised in order to use the life time ISA bonus only my wife can be on the Mortgage/Deeds is this true?

If so I will be gifting my wife the money from the sale of the house, in case of divorce we would legally share everything in the marriage pot anyway including the new house ect?

In case of death I would be the next of kin and on my wife’s will therefore would take ownership of the home?

Also how would my wife being a first time buyer affect stamp duty as we are technically selling another house to buy the new one?

Kind Regards Peter

TheMilkmansDad

no its doesn't appear to be true (assuming the link is up to date!)

https://www.moneyboxapp.com/faqs/lisa/buying-house-with-someone-else/

SDLT_Geek

PeterOzzy said:

I own my property outright my Wife has never owned a home (never on the deeds). She set up a Lifetime ISA a few years ago from the advice of Martian Lewis. This is now worth approximately 17k with 3k of that coming from government scheme. We are selling my home and buying a house together, we only need a small mortgage of 80k and have been advised in order to use the life time ISA bonus only my wife can be on the Mortgage/Deeds is this true?

If so I will be gifting my wife the money from the sale of the house, in case of divorce we would legally share everything in the marriage pot anyway including the new house ect?

In case of death I would be the next of kin and on my wife’s will therefore would take ownership of the home?

Also how would my wife being a first time buyer affect stamp duty as we are technically selling another house to buy the new one?

Kind Regards Peter

I assume you would be buying in England, so stamp duty land tax is the relevant tax. 

Oddly the way the rules work it seems that if your wife is the sole owner of the new property, with you having no underlying share, then she can still count as a first time buyer for SDLT.

• You have no other property interests?
• The price is not over £500,000?
• She will live in the property as her only home?

Slithery

PeterOzzy said:

...from the advice of Martian Lewis

Beep-boop. I usually only take advice from humans...