Do I qualify as a first-time buyer?

Buying your very first property is a big deal! With the freedom to live how you want to within grasp, purchasing your first home is an exciting yet daunting time, whatever your age or life stage.

Your status as a first-time buyer however could be more valuable than you think. There are several schemes available to help you move onto that property ladder if you are a first-time buyer, with the Lifetime ISA, shared ownership, First Homes, and the mortgage guarantee scheme just some of the initiatives accessible to first-time buyers in England.

Here, we explore the official definition of a first-time buyer and answer whether buying with someone who is not a first-time buyer means you still qualify.

What is a first-time buyer?

As simple as it seems, a first-time buyer is a person who is purchasing a property for the very first time. The definition of a first-time buyer however isn’t as clear cut as many think. What if you’ve inherited a property, owned commercial premises or purchased a home overseas?

There is further confusion when purchasing your first property as a couple if one of you has owned or purchased a property before.

I own a commercial property, am I classed as a first-time home buyer?

Owning commercial premises, either currently or in the past, does not affect your status as a first-time buyer. As long as the property was or is not classed as a residential dwelling, you will be able to access the schemes and reliefs available to qualifying first-time buyers when purchasing your new home.

If the commercial premises you own, or have owned, have residential accommodation attached to it, however, you won’t be able to class yourself as a first-time buyer.

I’ve inherited, not bought, property, am I a first-time buyer?

In short, no. If you have inherited a property or had a house bought for you by your family, you cannot qualify as a first-time home buyer. The same principle applies if you own, or have owned, a buy-to-let property or a residential dwelling based overseas.

We’re buying as a couple but one of us owns the property, where do we stand?

An unmarried couple, in which one partner owns (or has owned) a home before, could still qualify as first timers as The Guardian explains:

“Contrary to what some solicitors and conveyancers have told other readers asking similar questions to yours, being married does not stop you from being defined as a first-time buyer and so qualifying for stamp duty land tax (SDLT) relief. Provided your spouse doesn’t already own property and you are buying in your name only, you can get relief on the first £300,000 of the purchase price of a property costing up to £500,000…”

If you are married, however, you cannot be classed as a first-time buyer if your spouse already owns a home.

Are you a first-time buyer looking to purchase a home? Contact us today to discuss your mortgage options.

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