How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Stuart J Your Own Question
Stuart J
Stuart J, Property Solicitor
Category: Property Law
Satisfied Customers: 22937
Experience:  Senior Partner at Berkson Wallace
11292137
Type Your Property Law Question Here...
Stuart J is online now

I have been left half of my mums property in trust that I

This answer was rated:

Hi, I have been left half of my mums property in trust that I live in, my mum had tenants in common with my father, if I buy a property in the future, will I still be a first time buyer?
Assistant: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: no, nothing
Assistant: Where is the property located?
Customer: I’m, England. I live In it with just my father and brother now
Assistant: Anything else you want the Lawyer to know before I connect you?
Customer: I am paying into a lifetime isa, can I use the bonus for buying my first property?
Customer: replied 7 days ago.
Also, my mum is on the land registry with my farther for the property, myself and brother are not on the land registry. The trust was set up so if the property was sold, myself and brother get half the proceeds. The house will not be sold and is our main residence
Customer: replied 7 days ago.
Will I still be classed as a first time buyer as is everything is now? And avoid stamp duty on a purchase of £300,000? Or because my mum has left me part of this property in trust, will I pay extra stamp duty?

Hi, welcome to JustAnswer. My name is Jo C, I’m a barrister with 12 years of experience and I am happy to help with your question today.

Customer: replied 7 days ago.
Ok great, thank you. It’s been a difficult year, with losing my mum to cancer and i just need a bit of advice
Customer: replied 7 days ago.
I need an hour until I’m home, speak soon

I have been asked to look at this for you.

I normally simply send a link but this article explains extremely simply and straightforward, that you are no longer a first-time buyer.

https://www.theguardian.com/money/2018/dec/17/do-i-count-as-a-first-time-buyer-if-i-inherit-a-share-of-a-home-abroad

Sorry.

If I have answered your question for you, at the top of the page, you should see a rating facility. Can you please rate my reply 3 stars or more because that really helps me? Please note you are not rating whether it’s favourable, because sometimes you may not get the answer you want, but basically my knowledge and way of dealing.

The thread does not close and I am happy to answer any questions you may have arising from this.

Kind regards

Customer: replied 7 days ago.
I have decided that I will find out what sort of trust has been left to me first and then I will speak to you tomorrow?
Customer: replied 7 days ago.
does the fact that half the property is in trust where me or my brother cannot touch it, until my farther dies. I am not a first time buyer? Would I have to pay the extra 3% stamp duty? So 6% if I buy a property to live in now? I read something about Hmrc would class you as a ftb if the property was sold within 3 years?

No problem. In your own time. You have an interest in the property albeit that you may not be able to touch it. You would have to pay the extra stamp depending on the value of your share of that property.

You would have to pay stamp duty at the increased rate if you purchased another property but the original one was sold within three years, you can reclaim it.

Customer: replied 7 days ago.
My share is £150,000. Can we break the trust? Would this change things? Someone said to us we could do this. You see also my dad is looking to remortgage but he can’t as mum has died and he doesn’t own the other half? Problem

You can do a Deed of Variation where you leave everything to someone else.

However if you are doing that on the basis that they can give you back at some stage, you commit tax fraud so be careful.

If however you did a deed of variation leaving everything to your father on the basis that you would inherit the property when your father eventually dies, there is no problem that I can see with that.

You would need to register restriction against the property to prevent him selling it without your consent and that is the potential problem that he could change his will to leave all his assets and savings to the RSPCA.

 

If you could help me, in the way that I have helped you, I would be obliged if you could please use the rating service because that gives payment for my time and expertise it today.

If anything else crops up, we can still exchange notes.

Kind regards.

Customer: replied 7 days ago.
And this deed of variation. If I give my farther my inheritance then will I be classed as a first time buyer?

The definitive answer will come from the Stamp office but in my opinion, yes you will because you are literally a first-time buyer.

A deed of variation treats the inheritance as though it went to whoever you leave it to in the first instance, as though the will was written like that.

The circumstances are so unusual that it is not actually covered in detail in any rulebooks so it’s simply a case of interpreting the law as it stands.

 

Customer: replied 7 days ago.
Ok, I need to think this through. We ideally want to keep the family gone for life but I may one day, a few years time, want to buy my own house, with own life. 6% stamp duty to buy a home to live in doesn’t seem fair.
Customer: replied 7 days ago.
Keep family home for life

You will always have a binding agreement with your father that is not going to sell it or leave it to the cat’s home

I did not vote the government in (I don’t vote because I think they are all lying scumbags) so I’m not to blame for the extra stamp duty. As you appreciate, my job is merely to say what the law is, I get involved in making it.

Don’t get mixed up between first-time buyers after a first-time buyers discount for anything and someone buying a second home.

If you want to buy your own house in the future, what you need to do is divest yourself of any existing house.

Customer: replied 7 days ago.
Ok so sign over inheritance With a deed of variation. How do I put a restriction against the property to stop him selling
Customer: replied 7 days ago.
Or leaving to a possible future wife
Customer: replied 7 days ago.
And can you do a deed of variation? Or do I need to consult a local solicitor to me?

You place a restriction on the property with form RX1 although as there are about 60 different wordings of restrictions, and the land registry will only accept standard ones with modifications, it is really not doing yourself job.

You cannot stop him leaving everything in his will to the cats home. For that reason, you would be better with a legal charge because that means you are guaranteed to get your money out of the property if he does leave it to RSPCA because your interest is the value of the money.

You wouldn’t get the house, you would only get money.

We can let you have a blank deed of variation but to be honest, you will be better getting a solicitor to do the whole thing. You may save a few hundred or even GBP1000 by doing yourself but you risk losing GBP200,000 in a house so in my opinion it would be false economy.

I’m afraid that we are specifically not allowed to take instructions from here.

If the site were to be a source of potential clients, we would no longer be independent because we would have an interest in pursuing litigation. With no interest in pursuing litigation, we can be really objective with our view is to whether something has a good chance or a limited chance of success.

 

In any event, for logistical reasons you would be better using a local solicitor .

 

 

 

I am not a lover of lining the pockets of solicitors but this is one of those times when they would be necessary evil.

 

If you could help me now please, in the way that I have helped you, I would be obliged if you could please use the rating service because that gives payment for my time and expertise here today.

If anything else crops up, we can still exchange notes. The thread doesn't close.

Kind regards.

Stuart J, Property Solicitor
Category: Property Law
Satisfied Customers: 22937
Experience: Senior Partner at Berkson Wallace
Stuart J and other Property Law Specialists are ready to help you