The Housing Minister has released policy guidance on first-time buyer status. The Minister has underlined the importance that properties built and reserved in law for first-time buyers, must only be purchased and occupied by first-time buyers and not by people who have previously owned or inherited property or an interest in property anywhere in the world.
The duty is on the buyer to ensure that he or she is aware of the first-time buyer status of a property.
Ownership includes by freehold, flying freehold, long lease, share ownership and inheritance, as well as where someone has undertaken a mortgage on a property.
The minister has made clear that ownership anywhere in the world is a bar to entitlement.
The Minister has also clarified the circumstances under which a first time buyer might rent out his or her first time buyer property.
In addition the Minister has a discretion to permit a non first-time buyer to purchase a first time buyer property. This discretion could be applied to circumstances where there is a relationship breakdown or where the proceeds of sale of an inherited property or an interest in property, is insufficient to purchase a property in Jersey and where a person who has purchased a first time buyer property, wishes to move to a larger or smaller property provided that the initial property is sold to a first-time buyer.
The guidelines do not affect first time buyer stamp duty which is worked out on the basis that ownership anywhere in the world is a bar to entitlement.
This comment is not legal advice and for the full guidelines see the attached First-time buyer guidance here as published by the Government of Jersey, or for further discussion or advice please contact a member of our property team on property@lgl.je.
Robin Troy | Solicitor
t: +44 1534 760761
e: rtroy@lgl.je