Help to Buy ISA guide

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

alexclouds wrote: »

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

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

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

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

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

emily598 wrote: »

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?

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_2

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

Emz1 wrote: »

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?

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

eskbanker wrote: »

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:

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.

MarkP80

Hi,

My daughter has been saving into a LISA, but her boyfriend has a Help-To-Buy ISA. If they were to buy a property together, can they use these two different ISAs, or do they have to both have the same type?

Many thanks,
MarkP