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Where Taxpayers and Advisers Meet

First Time Home Buyer - previously bought property for others

TSeeker
Posts:5
Joined:Mon May 31, 2021 1:28 pm
First Time Home Buyer - previously bought property for others

Postby TSeeker » Mon Jun 14, 2021 2:39 pm

Hi, I am an immigrant and long back (before immigrating) had previously taken loan in my home country to buy house for my parents. The house was under construction and when it was completed, the name registration (who owns it) was that of my parents, i.e., I paid for the loan for the house but never technically owned it - it was NOT a transfer of ownership; it was registered in the name of my parents when the property was built and time to register it for the 1st time came.

If I now want to buy a house for myself to live in the UK, do I qualify as a first time buyer as now I'll be buying house explicitly for myself ?

pawncob
Posts:4753
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: First Time Home Buyer - previously bought property for others

Postby pawncob » Tue Jun 15, 2021 10:59 am

If you are a single person who has never owned a home before anywhere in the world, you will be regarded as a bona fide first-time buyer.
See:
https://www.pettyson.co.uk/about-us/our-blog/366-what-is-a-first-time-buyer
With a pinch of salt take what I say, but don't exceed your RDA

TSeeker
Posts:5
Joined:Mon May 31, 2021 1:28 pm

Re: First Time Home Buyer - previously bought property for others

Postby TSeeker » Tue Jun 15, 2021 5:10 pm

Thanks ! The part that confused me was "major interest in the property". Would just taking a loan to buy a property for others (parents in my case) be considered a "major interest" in the property ?

Lambs
Posts:1562
Joined:Wed Aug 06, 2008 3:15 pm

Re: First Time Home Buyer - previously bought property for others

Postby Lambs » Tue Jun 15, 2021 6:36 pm

T,

Assuming we are talking about a property situate in England or Northern Ireland, (which is reasonable, given that we are talking about SDLT as distinct from the Scottish LBTT or Welsh LTT instead), a "major interest in land" is defined for SDLT purposes by HMRC as being "any freehold or leasehold estate, whether legal or equitable". I am not a lawyer, but my understanding is that if you lent money to your parents, your "interest" (such as it is) is the loan to your parents, not in the land or the building itself. So, your next property purchase should be your first.

The answer MIGHT be different if, for example, the lending has conditions attached relating to the land or property but if so, you would be better speaking directly to a suitably qualified professional.

With regards,

Lambs

TSeeker
Posts:5
Joined:Mon May 31, 2021 1:28 pm

Re: First Time Home Buyer - previously bought property for others

Postby TSeeker » Tue Jun 15, 2021 7:01 pm

Brilliant ! Ta !


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