Help to Buy ISA guide

eskbanker

Fojo wrote: »

Hello, my nephew is looking to buy next year and i help him with his finances. He opened a HTB ISA when they were first introduced and transferred to a LISA last year. Am now looking at a HTB ISA for my 17 year old son and have come across something i hadnt previously considered. As the HTB bonus isnt paid until the house is bought, is my nephew still entitled to a further bonus at house purchase time based on the years that he held his HTB ISA? Thanks folks

No, the funds he transferred from his HTB to the LISA will already have been boosted by a 25% bonus so he can't have another one on the same money!

There's no concept of earning bonuses based on time an account is held, both HTB and LISA pay a bonus based on 25% of a specific amount (balance and contribution respectively) at a point in time and no further bonuses are due on that amount before or after.

Fojo

Thanks eskbanker. I appreciate he wont get the bonus twice, however i know that the LISA bonus is paid annually into the account and when i was re-reading info on HTB for my son i was struck by the fact that the bonus for that isnt paid until the house is purchased, so am i right in thinking that ultimately he isnt getting any bonus for the year or so that he had the HTB ISA?

amylou1685

If I have previously been added to a properties land registry and mortgage to allow my ex to release capital to do renovations on the property and I have not been on the deeds or mortgage since February 2018, I have never bought any houses other than been added to this one for a period of 18 months, does this rule me out of the 'first time buyer' category?


I have a deposit now which I would like to increase for buying a new house, can I apply for the HTB ISA or not? im so confused.

eskbanker

Fojo wrote: »

i know that the LISA bonus is paid annually into the account

No - any contribution to a LISA is rewarded with a 25% bonus within 4-8 weeks of the payment being made, regardless of whether it's new money or a transfer from another ISA. The exception was in the 2017/18 tax year when, as a one-off, the LISA bonuses weren't paid until just after the end of the tax year in April 2018 - since then they've been paid on a monthly cycle after any contributions are made.

Fojo wrote: »

am i right in thinking that ultimately he isnt getting any bonus for the year or so that he had the HTB ISA?

No, he will already have received the 25% bonus on top of the value of his HTB - this will show on his LISA statements if you don't believe me! If he transferred from HTB to LISA during the 2017/18 tax year then he'd have received this bonus in late April or maybe early May 2018....

eskbanker

amylou1685 wrote: »

If I have previously been added to a properties land registry and mortgage to allow my ex to release capital to do renovations on the property and I have not been on the deeds or mortgage since February 2018, I have never bought any houses other than been added to this one for a period of 18 months, does this rule me out of the 'first time buyer' category?


I have a deposit now which I would like to increase for buying a new house, can I apply for the HTB ISA or not? im so confused.

Yes and no respectively - the criteria are fully explained at https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf, where the start of clause 2 tells you all you need to know:

I do not own, and never have owned any interest in land....

Fojo

much appreciated eskbanker, we did follow martins instructions and transfer at the optimum time to maximise profits so i believe you and will dig out the paperwork at some point!! Thanks again

jsu

Question - My partner already has a help to buy ISA, I am considering either help to buy or lifetime ISA. We definitely won't be looking to buy in the next year or so. So to me a lifetime ISA makes more sense as I will get a bigger bonus. I know two first time buyers getting a house together can combine their two help to buy ISAs - but, if buying a property together, can one person use a help to buy and the other a lifetime ISA?

masonic

jsu wrote: »

if buying a property together, can one person use a help to buy and the other a lifetime ISA?

Yes
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jennaemerson

I own my home. I want to add my husband to the title of the house by transfer of euiqty (he has not owned a property before). Is he allowed to claim to help to buy ISA bonus?

eskbanker

jennaemerson wrote: »

I own my home. I want to add my husband to the title of the house by transfer of euiqty (he has not owned a property before). Is he allowed to claim to help to buy ISA bonus?

Yes, as long as the sale and repurchase is processed via a conveyancer who's registered for HTB work, and that the (re)mortgaging is also formally handled properly too.