Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 1st Dec 15, 3:23 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Help to Buy ISA guide
    • #1
    • 1st Dec 15, 3:23 PM
    Help to Buy ISA guide 1st Dec 15 at 3:23 PM

    Click reply below to discuss. If you haven!!!8217;t already, join the forum to reply. If you aren!!!8217;t sure how it all works, read our New to Forum? Intro Guide.
Page 75
    • MeasureTwice
    • By MeasureTwice 30th Jan 18, 10:29 AM
    • 1 Posts
    • 0 Thanks
    MeasureTwice
    Share in inherited property?
    One of my grandparents has just died and I'm due to inherit a percentage of the estate - her estate includes her flat which the Executor intends to sell. Would this stop me being eligible for a Help to Buy ISA either now or after all the paperwork has been done? Should I be rushing to start one or would I have to abandon it anyway once the inheritance comes through? Thanks for any help you can give!
    • Alexland
    • By Alexland 30th Jan 18, 2:21 PM
    • 1,642 Posts
    • 1,123 Thanks
    Alexland
    One of my grandparents has just died and I'm due to inherit a percentage of the estate - her estate includes her flat which the Executor intends to sell. Would this stop me being eligible for a Help to Buy ISA either now or after all the paperwork has been done? Should I be rushing to start one or would I have to abandon it anyway once the inheritance comes through? Thanks for any help you can give!
    Originally posted by MeasureTwice
    Provided the property is sold within the estate and you only recieve the cash proceeds you have never owned property and would be an eligible first time buyers under the HTB ISA or LISA rules.

    LISAs enable you to save more each tax year for a bigger bonus but cannot be used to buy a property (without penalty) until they have been opened 12 months. The interest rate is poor but the bonus is so much bigger.

    https://www.skipton.co.uk/savings/isas/lifetime-isa

    Alex
    • Cwilliamsroberts
    • By Cwilliamsroberts 31st Jan 18, 9:24 AM
    • 1 Posts
    • 0 Thanks
    Cwilliamsroberts
    Confused with boundaries.
    Where does London end with regards to a Help to Buy loan?
    Some sites have all areas within the M25, some quote differently.
    Bexley is a London Borough but address is Kent, Dartford is within the M25 but not a London Borough for example.
    Please help!
    • Bradleycf1
    • By Bradleycf1 31st Jan 18, 9:55 AM
    • 2 Posts
    • 0 Thanks
    Bradleycf1
    Is there any lifetime ISA accounts in Northern Ireland?
    • Plus
    • By Plus 31st Jan 18, 11:10 AM
    • 284 Posts
    • 204 Thanks
    Plus
    Confused with boundaries.
    Where does London end with regards to a Help to Buy loan?
    Some sites have all areas within the M25, some quote differently.
    Bexley is a London Borough but address is Kent, Dartford is within the M25 but not a London Borough for example.
    Please help!
    Originally posted by Cwilliamsroberts
    For a mortgage used with a Help to Buy ISA, see the guidance notes:

    !!!8220;London!!!8221; means any land, which is determined by the Administrator, by reference to
    the postcode associated with that land, to be located within one of the London boroughs
    listed in Schedule 9 (London Boroughs).

    Schedule 9
    London Boroughs
    (1) The City of London
    (2) Camden
    (3) Greenwich
    (4) Hackney
    (5) Hammersmith and Fulham
    (6) Islington
    (7) Kensington and Chelsea
    (8) Lambeth
    (9) Lewisham
    (10) Southwark
    (11) Tower Hamlets
    (12) Wandsworth
    (13) the City of Westminster
    (14) Barking and Dagenham
    (15) Barnet
    (16) Bexley
    (17) Brent
    (18) Bromley
    (19) Croydon
    (20) Ealing
    (21) Enfield
    (22) Haringey
    (23) Harrow
    (24) Havering
    (25) Hillingdon
    (26) Hounslow
    (27) Kingston upon Thames
    (28) Merton
    (29) Newham
    (30) Redbridge
    (31) Richmond upon Thames
    (32) Sutton
    (33) Waltham Forest
    A Help to Buy loan is something different.
    • Alexland
    • By Alexland 31st Jan 18, 9:56 PM
    • 1,642 Posts
    • 1,123 Thanks
    Alexland
    Is there any lifetime ISA accounts in Northern Ireland?
    Originally posted by Bradleycf1
    I answered this question for you yesterday when you asked it in the Lifetime ISA thread:

    http://forums.moneysavingexpert.com/showthread.php?p=73805023
    • Stephy_0509
    • By Stephy_0509 31st Jan 18, 10:25 PM
    • 1 Posts
    • 0 Thanks
    Stephy_0509
    Not sure if this has been asked.
    My partner and I opened a H2B isa each. My partner subsequently bought a house (his/ our 1st house), used his H2B bonus and due to me being a student nurse I was unable to get a mortagage so he bought the house on his own. I'm not on the mortgage or the deeds. And i dont pay the mortgage only the utility bills etc.
    I am due to qualify in the summer ie have a ful!!!314; time job, around which time he will remortage the house and i will "buy into" the house, and put my deposit into the house and have a joint mortgage.
    My question is, will my bonus be able to be used to buy into a house with an existing mortgage, ie when my partner re-mortgages. Part of the reason i was never on the deeds ect was so i could still use the bonus.
    • eskbanker
    • By eskbanker 1st Feb 18, 12:25 AM
    • 6,289 Posts
    • 6,357 Thanks
    eskbanker
    Simply remortgaging wouldn't be enough, it would need to be a properly conveyanced sale and purchase transaction that gets you onto the deeds, so you'd need to weigh up whether HTB bonus would be enough to offset the fees involved in doing so....
    • madeinireland
    • By madeinireland 1st Feb 18, 4:45 PM
    • 380 Posts
    • 123 Thanks
    madeinireland
    My daughter has an Help to buy ISA and is considering transferring to a LISA. At the same time she is planning a working holiday in Australia for a couple of years. She would then hope to come back and buy a house with her savings.

    What happens if she falls in love with Australia and wants to buy a house there - can the LISA be used for that? And what would be the penalty if she then wanted to get access to her savings to use it for that purpose. Would she suffer the 6% penalty that I have heard mentioned? I presume she would also lose the bonus?

    Thanks...
    • margaretx9
    • By margaretx9 1st Feb 18, 6:28 PM
    • 26 Posts
    • 8 Thanks
    margaretx9
    For a mortgage used with a Help to Buy ISA, see the guidance notes:



    A Help to Buy loan is something different.
    Originally posted by Plus
    Find the postcode of the property - and you can find which council it is in using the link below. London for the HTB isa £450k limit is one of the 33 boroughs listed above - its essentially the GLA area covered by the Mayor of London.

    https://www.gov.uk/find-local-council

    Large parts of the GLA area have Essex (all of Havering, Barking and Dagenham and most of Redbridge), Surrey (e.g. most/all of Croydon, Richmond Kingston and Sutton), Kent (Bexley, Bromley etc), Herts (bits of Barnet) and Middlesex (much of Harrow, Brent, Enfield) postal addresses - but they are still London for administrative purposes.

    Why they don't just amend the HTB isa scheme and make it £450k nationally - and align it to the lifetime isa is beyond me as it just creates confusion. They could even increase it to £500k to align with the first time buyer stamp duty relief which is a £500k limit nationally.

    But why make things simple!
    • margaretx9
    • By margaretx9 1st Feb 18, 6:33 PM
    • 26 Posts
    • 8 Thanks
    margaretx9
    My daughter has an Help to buy ISA and is considering transferring to a LISA. At the same time she is planning a working holiday in Australia for a couple of years. She would then hope to come back and buy a house with her savings.

    What happens if she falls in love with Australia and wants to buy a house there - can the LISA be used for that? And what would be the penalty if she then wanted to get access to her savings to use it for that purpose. Would she suffer the 6% penalty that I have heard mentioned? I presume she would also lose the bonus?

    Thanks...
    Originally posted by madeinireland
    She can only use the help to buy isa - and a lifetime isa - for a UK property - and she must take it out a mortgage as well to get the bonus on the former or draw down the latter before 60. She can of course keep either/both open while she is in Australia - but can't invest in them if she emigrates there until/if she returns to the UK.

    https://www.gov.uk/individual-savings-accounts/if-you-move-abroad-or-die

    If she moves to Australia and becomes a permanent resident (or in due course an Aussie citizen) she can of course take advantage of their first time buyer schemes. She couldn't buy a house/land there easily if she doesn't get permanent residency anyway as purchases by non permanent residents are heavily restricted - and she would need to be highly skilled or have a skill in high demand to qualify for that.
    Last edited by margaretx9; 01-02-2018 at 6:35 PM.
    • alexclouds
    • By alexclouds 7th Feb 18, 2:20 PM
    • 1 Posts
    • 0 Thanks
    alexclouds
    Hi there. I've already saved my deposit for a flat, but I'm still hunting for one to buy, so in meantime I want to make use of the help to buy isa. So if I take one out, do I only receive the bonus from the government on the amount I can save in the time from now until the purchase of the flat? As I think the maximum you can put in each month is £200, if this is correct then I won't be able to receive that much in terms of a government bonus (as looking to buy in the next few months). Does anyone know if I can receive a bonus on the amount I've already saved thats not currently in a help to buy isa?

    Thanks,
    Alex
    • margaretx9
    • By margaretx9 7th Feb 18, 7:20 PM
    • 26 Posts
    • 8 Thanks
    margaretx9
    Hi there. I've already saved my deposit for a flat, but I'm still hunting for one to buy, so in meantime I want to make use of the help to buy isa. So if I take one out, do I only receive the bonus from the government on the amount I can save in the time from now until the purchase of the flat? As I think the maximum you can put in each month is £200, if this is correct then I won't be able to receive that much in terms of a government bonus (as looking to buy in the next few months). Does anyone know if I can receive a bonus on the amount I've already saved thats not currently in a help to buy isa?

    Thanks,
    Alex
    Originally posted by alexclouds
    You can pay in £1200 in month 1 and £200 a month thereafter. You need to save at least £1600 to get a bonus.

    So if you open one today on 1 April - assuming you pay in £1200 in Feb, £200 in March and £200 on 1 April - you would be eligible to claim a £400 bonus. For every month you save £200 the bonus goes up £50.

    This assumes the property is worth £450k or less in London or £250k or less elsewhere. If it exceeds those limits you qualify for no bonus.
    • cirwin91
    • By cirwin91 12th Feb 18, 11:33 AM
    • 2 Posts
    • 0 Thanks
    cirwin91
    Hello all.
    I recently purchased a property and claimed a H2B bonus with no problems.
    I had hoped my partner would also be able to claim for a bonus as she has a H2B account and would also have been a first time buyer, however in the end we could not put both names on the mortgage due to our work circumstances - so the house is solely in my name at present. We are still lodging money into her H2B account on a monthly basis.


    My question is, Is it worth still lodging money into this account or would my money be better saved elsewhere?


    When we come to remortgage the property I don't think it be worth claiming the H2B bonus at that stage. There would be legal fees etc to pay as the house would need to be transferred into her name to be eligible for the bonus to be paid out.
    Can anyone confirm my thinking is along the correct lines and offer any advice on whether to close the account etc.


    Many thanks
    • Alexland
    • By Alexland 12th Feb 18, 12:31 PM
    • 1,642 Posts
    • 1,123 Thanks
    Alexland
    Well if your partner has no stake in the property then they are still eligible to hold and contribute to their HTB ISA. I agree it's unlikely to be worth the fees to involve solicitors in selling them a proportion of the property in order to claim their HTB ISA bonus. You might wish to add them to the land registry and mortgage at a later date at which point they would need to close the HTB ISA.

    The HTB ISA interest rate is ok - there are better rates elsewhere at 5% with Nationwide Flex Direct or Regular Savers but you are limited to how much you can contribute, the accounts expire, etc.

    How long do you intend to keep the property - would it be worth keeping the partner's HTB ISA (or convert it to a LISA for the higher property value but at a lower interest rate) for next time you both upgrade?

    Alex
    • emily598
    • By emily598 13th Feb 18, 10:07 AM
    • 1 Posts
    • 0 Thanks
    emily598
    Eligibility
    Hi there,


    I'm hoping to open a HTB or a LISA but I'm not sure about my eligibility for the end bonus (apologies if this has been asked before, I tried to scan through!). I have never bought nor contributed to the purchase of any property, but I am currently a Trustee of a couple houses (not the beneficial owner, but my name is on the deeds). Am I still eligible for this scheme?


    Many thanks
    • Alexland
    • By Alexland 13th Feb 18, 1:33 PM
    • 1,642 Posts
    • 1,123 Thanks
    Alexland
    I'm hoping to open a HTB or a LISA but I'm not sure about my eligibility for the end bonus (apologies if this has been asked before, I tried to scan through!). I have never bought nor contributed to the purchase of any property, but I am currently a Trustee of a couple houses (not the beneficial owner, but my name is on the deeds). Am I still eligible for this scheme?
    Originally posted by emily598
    Yes you are still a first time buyer if "you are only acting in a trustee role and will not be entitled as a beneficiary in the future, (and do not have any other interests in residential property)". See below link:

    https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#i-have-property-in-a-trust-do-I-still-qualify-as-a-first-time-buyer

    Alex
    • Emz1
    • By Emz1 14th Feb 18, 11:26 AM
    • 1 Posts
    • 0 Thanks
    Emz1
    Hi,

    I was wondering if this works for the share to buy scheme, where you own a percentage of the property and pay the rest in rent?

    Many thanks
    • eskbanker
    • By eskbanker 14th Feb 18, 12:55 PM
    • 6,289 Posts
    • 6,357 Thanks
    eskbanker
    I was wondering if this works for the share to buy scheme, where you own a percentage of the property and pay the rest in rent?
    Originally posted by Emz1
    See https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#shared-ownership-eligibility and https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#price-cap-shared-ownership:
    Are shared ownership properties eligible for a government bonus?
    Yes, if all the other scheme eligibility criteria are met.

    What is the property price cap for shared ownership schemes?
    In the context of shared ownership properties the price cap applies to the full sale price of the property rather than just the share you initially buy. For shared ownership properties the full sale price is a multiple of the equity share you are buying. In practice this means that if you are purchasing a 25% equity share of a property for £50,000, the full sale value is £200,000. Alternatively, your conveyancer can calculate the sale price based on the price paid for the equity share you are buying plus the net present value of rental payments due over the term of the lease.

    You should speak to your solicitor or conveyancer and they will be able to advise you on whether the property you are purchasing is within the price limit and is eligible for a government bonus.
    • Rich2808
    • By Rich2808 14th Feb 18, 8:23 PM
    • 562 Posts
    • 430 Thanks
    Rich2808
    Another ridiculous quirk of the system. If you are only buying a share that is less than £250k/£450k you should be eligible for the bonus as that is how your mortgage and stamp duty is determined.

    Surely someone who can only afford a 25% share on a £275k property needs more help than someone who can afford to pay £250k in full.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,233Posts Today

8,667Users online

Martin's Twitter