First time buyer?

Confused49

My son and his wife want to buy their first property, a house in London They have LISAs and want to avoid as much stamp duty as possible. They think they qualify as FTB, but . . . 

we have property in Spain in my wife's name. If she dies my son will inherit a share of that property.  At what point in the execution of her will would that mean he was no longer qualified as a FTB?

In fact my wife has set up a usufruct which means I could continue to use the property until my death.  If my wife died but I survived at what point would my son no longer qualify as an FTB?

Bookworm105

a will establishes a "bare trust" and the property is legally owned by that trust until such time as the legal ownership is transferred from the trust to whoever inherits under the will.
SDLTM09815 - SDLT - higher rates for additional dwellings: interests treated as owned by an individual, trusts, children [including children subject to the Mental Health Acts] - HMRC internal manual - GOV.UK (www.gov.uk)

HOWEVER, the person who inherits is the beneficiary of the will. As such they are beneficial owners of the property even whilst it is still legally owned by the will trust prior to the executor distributing the will.
SDLTM29855 - Definition of a first-time buyer – Previous acquisition by a Bare Trust - HMRC internal manual - GOV.UK (www.gov.uk)

SDLT is based on beneficial ownership, not legal ownership. So the second you/wife die then son is a beneficial owner of a property on planet earth and loses FTB status.

"A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence."