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HTB ISA, inheritance, LISA?
kellan
Posts: 3 Newbie
Hi everyone - I hope this is the correct place to post this, I just joined today because I'm really trying to find the answer to my question - but having read the Help to Buy page on the main site several times I'm still not certain.
I don't own any property and I have opened a Help To Buy ISA. But my parents do own a house and reality being as it is, it's likely that house will come to me sooner than I have saved enough money in the Help To Buy ISA to buy a house and use the bonus etc etc.
What I would like to know is this - at the point I come into the house, and am no longer a first time buyer, do I have to shut the HTB ISA entirely (immediately?) or can I keep the ISA (with its relatively high interest rate!) but just never use the bonus function? The rules state clearly that you can't *open* a HTB ISA if you aren't a first time buyer but I'm unclear whether it also says you can't *have* a HTB ISA as someone who is no longer a first time buyer but was, perfectly legitimately, when the account was opened.
Maybe the answer is to convert the HTB ISA into a LISA? And think of it as retirement savings rather than savings toward a mortgage?
Help is appreciated!
I don't own any property and I have opened a Help To Buy ISA. But my parents do own a house and reality being as it is, it's likely that house will come to me sooner than I have saved enough money in the Help To Buy ISA to buy a house and use the bonus etc etc.
What I would like to know is this - at the point I come into the house, and am no longer a first time buyer, do I have to shut the HTB ISA entirely (immediately?) or can I keep the ISA (with its relatively high interest rate!) but just never use the bonus function? The rules state clearly that you can't *open* a HTB ISA if you aren't a first time buyer but I'm unclear whether it also says you can't *have* a HTB ISA as someone who is no longer a first time buyer but was, perfectly legitimately, when the account was opened.
Maybe the answer is to convert the HTB ISA into a LISA? And think of it as retirement savings rather than savings toward a mortgage?
Help is appreciated!
0
Comments
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Under 8.11 (B) of the scheme rules, HTB ISA holders must
and under 6.3, ISA managers must send annual reminders thattake steps to correct any statement, form, declaration, confirmation or any information provided by them under or in connection with the Scheme Rules, which is untruthful, incorrect or misleading in any material respect.
so theoretically you should close a HTB ISA once you're no longer a first-time buyer but at the very least you should obviously do so if/when prompted to revalidate that you still qualify....each Help to Buy: ISA Holder must continue to satisfy those [eligible first-time buyer] criteria in order to participate in the Help to Buy: ISA Scheme0 -
Once you inherit a property or a share of one you should shut your help to buy isa and are no longer eligible for the bonus. Of course until probate comes through and you are put on the deeds you are still eligible for the HTB isa - which can take time.
Sorry to hear about your parents - presumably you are over 40 so ineligible for the lifetime isa?0 -
Definitely worth considering conversation to a LISA0
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Do you actually want to own your old family home? If not then make sure you take you inheritance in cash.0
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