First Time Buyer - HTB vs ISA

answers_123

Hello,

I currently have a Help to Buy ISA l. I am looking to buy my first property next year with my partner. However, my partner already has a mortgage so would not qualify as a first time buyer. I am wanting to know whether I would still be classed as a first time buyer if we were to purchase a property together? I am also considering opening a LISA instead of my HTB in order to deposit more money over the next year however, I want to confirm that I would class as a first time buyer before I transfer any money so that I can avoid any penalties if I am unable to gain the bonus.


Thanks in advance for any help! 

masonic

You would still be considered a first time buyer if you've never previously owned a share of a property. Since you are talking about "next year", it would be best to open with the minimum balance possible, then top up towards the end of the tax year or 2-3 months before you plan to buy if earlier. You should familiarise yourself with the other terms, and note that a new homebuyer ISA is planned, which you might prefer (although maybe won't have time to benefit from).

Rich2808

If you were buying jointly you could use your HTB or lifetime ISA to help fund the purchase - you wouldn't be able to benefit from the first time buyer stamp duty relief though given your partner isn't a first time buyer.

The term first time buyer excludes people who inherited a share of a property - even if they never lived in it as it was sold as part of the estate. They really should call these first time owner schemes - as some people buying their first property aren't eligible!

masonic

https://forums.moneysavingexpert.com/discussion/comment/82076603#Comment_82076603

If a property was sold within the estate and the proceeds then distributed, then the beneficiary would not be excluded on the basis of the property owned by the deceased. It is only if a share in the property was directly inherited would there be an issue (even if it were sold immediately thereafter).