Help to Buy ISA guide

MARTYM8`

eskbanker wrote: »

Just been doing some searching and found this list of registered solicitors but with two caveats:

1. It's those who can deal with the HTB equity scheme rather than ISAs (but hopefully at least some overlap)
2. It only covers the Home Counties

....but it's a start!

The London list is here - although it doesnt give addresses so if you want a local firm its not so useful.

But I agree - those firms will almost certainly be eligible for the HTB isa if they are offering shared ownership and HTB equity loan conveyancing.

https://www.helptobuylondon.co.uk/useful-information/solicitors

Lynsayj

I have previously owned a house as part of a couple and am now single and no longer own a house - can I use this HTB ISA?

eskbanker

Lynsayj wrote: »

I have previously owned a house as part of a couple and am now single and no longer own a house - can I use this HTB ISA?

Unfortunately you don't need to go beyond your first six words when it comes to eligibility as a first-time buyer....

kittyjo82

Ok so here is my scenario as i understand it.

We are purchasing a shared ownership property.
100% is 190k and we are having a 40% share at 76k.
So, we have (once we also get the helptobuyisa bonus) a 10% deposit of £7,600.
We have a mortgage in principle of £68400.
So i dont entirely understand your example.

The solicitor now has come back to say they can request a reduced deposit of £6700 (just minus the gov bonus) at exchange of contracts. I have agreed as i dont feel its our fault we didnt know the bonus cant be claimed for until completion.

I just hope thats accepted otherwise i guess my dad could pay the £900 but then on completion would he get that back?

eskbanker

Apologies if I've misled in any way, I hadn't understood that you're making payments at three separate stages (reservation, exchange and completion) instead of the more usual two.

Regarding "i dont feel its our fault we didnt know the bonus cant be claimed for until completion", your solicitor really should have explained this all to you but it is clearly stated in the official FAQ at https://www.helptobuy.gov.uk/help-to-buy-isa/faq/:

Can I use the Help to Buy: ISA government bonus for the deposit when I exchange contracts for my house purchase?
The Help to Buy: ISA bonus must be claimed on your behalf by a solicitor or conveyancer in anticipation of the completion date. The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home

This also clarifies that the bonus has to be applied to the purchase itself so wouldn't be money available for repaying to someone else, so, as you say, fingers crossed that the reduced deposit is accepted.

masonic

kittyjo82 wrote: »

I just hope thats accepted otherwise i guess my dad could pay the £900 but then on completion would he get that back?

It's normally a refundable deposit that is used to insure the seller against you pulling out of the contract after exchange (you would lose it if you did that). So check with your solicitor whether those excess funds that will be replaced by the HTB ISA bonus at completion can be refunded to you rather than being added on to the funds being used to make the purchase.

EddS

A quick confirmation but I think I know the answer:
The HTB ISA maximum house price limit (for NOT London) is £250,000 and this is regardless of how many buyers as it applies to the house not the mortgage. So a person buying their first place has the same house price limit as a couple buying together who both have HTB ISAs. Also, because it applies to a house not the mortgage, sharing the mortgage in any way won't help. Is this correct?
If so, I guess this would mean that if prices are high in your area, then you would either go without the government bonus or wait until April 2018 when you could have a years worth of savings under the Lifetime ISA.

masonic

EddS wrote: »

A quick confirmation but I think I know the answer:
The HTB ISA maximum house price limit (for NOT London) is £250,000 and this is regardless of how many buyers as it applies to the house not the mortgage. So a person buying their first place has the same house price limit as a couple buying together who both have HTB ISAs. Also, because it applies to a house not the mortgage, sharing the mortgage in any way won't help. Is this correct?
If so, I guess this would mean that if prices are high in your area, then you would either go without the government bonus or wait until April 2018 when you could have a years worth of savings under the Lifetime ISA.

Yes, all correct. Waiting, when you can afford to go ahead without the bonus is quite a gamble, especially if buying in an expensive area. Even a modest increase in house prices during that time is likely to more than wipe out the bonus.

EddS

Cheers masonic

evansc1

Hi

I've closed my htb ISA and solicitors have given me a declaration form to fill in.

It requires my htb ISA number. I don't have a clue what that really is. I'm waiting on a response from my solicitor but have so far been told:
1. (Call centre of my solicitors) It should be on all correspondence from the bank (it's not on the closing statement and in work so can't check anything else).
2, (Bank) The solicitor should know it.

I'm presuming it's not the account number that I had with the bank as that will be unique for the bank...and that there should be a separate ISA number somewhere?

I'm not sure which is true! AND supposed to be completing Friday!!

Please could someone assist? (I have the most incompetent solicitors in Britain I swear - Beaumont Legal).