How You Can Inadvertently Lose Your First Time Buyer Status

are you definitely a first time buyer?

A common misunderstanding among purchasers is that because they are buying their first home that they intend to live in they are therefore a First Time Buyer. However the focus is actually on whether you were named as a registered owner of any property, whether you lived in it or not. As such, you will lose your First Time Buyer status if:

  • Your parents decided to transfer the property into the names of their children, so that you and your siblings  each became registered owners even though they carried on living at the property.
  • You have ever invested in a Buy to Let property with family or friends, even if you never lived in it and have since sold the property
  • You have ever been named as a registered owner to assist a friend or family member to reach affordability even though you never lived at the property or profited in anyway, or even made any financial contribution to it
  • You have ever inherited a property and it was assented into your name, even if you never lived in it and even if it has since been sold
  • In the case of a joint purchase only one of you is a First Time Buyer. In order to avail of the First Time Buyer Stamp Duty Land Tax exemption all purchasers must be First Time Buyers. If your co-purchaser is not, you lose your First Time Buyer status for Stamp Duty purposes.

protect your first time buyer status

It is therefore essential that you consider your First Time Buyer status as something to protect. If you are approached about joining in on a purchase of a property to help someone with affordability, or because your parents want to make plans for the future, be mindful of the financial consequences of becoming an owner of a property ahead of completing the purchase of your first home. Secondly, be sure to take advantage of the financial incentives and benefits available to you. These will change and develop over time, so stay aware of the perks of your First Time Buyer status.

Next Steps

Take the next step and call us on free phone number 0800 840 9291.
Alternatively you can contact us or request a callback.

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Gilbert Nesbitt Profile picture Gilbert Nesbitt

Partner

Lauren Burns Profile picture Lauren Burns

Senior Associate / Conveyancing Director

Ian Creighton Profile picture Ian Creighton

Conveyancing Director / Marketing Manager

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