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Help to Buy ISA Bonus - Land Purchase
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BLB1987666
Posts: 3 Newbie
Hi,
Have recently opened a Help To Buy ISA and looking to use it (including the 25% bonus) as a contribution along with other savings to purhase a plot of land and self-build a house.
The GOV website states the HTB ISA and bonus CAN be used to purhcase land but not the construction costs to build a house if land is already owned. I am aware I need to find a self-build mortgage provider, however my question is: If I am to purhcase the land from a family member for a nominal sum (say its MV is £100k but they choose to sell it to me for £1k) could I use the HTB ISA and be eligable for the 25% bonus if I apply for a mortgage to cover the purchase of the land and the construction costs together?
If I was gifted the land I would technically own it already and wouldn't get the benefit of the HTB ISA bonus. Therefore I am trying to find away to make use of the bonus. I have asked my HTB ISA provider and they couldn't answer the question, neither could their in-house mortgage advisers (after 45mins on the phone turns out they don't provide mortgages on self-build anyway!).
Have recently opened a Help To Buy ISA and looking to use it (including the 25% bonus) as a contribution along with other savings to purhase a plot of land and self-build a house.
The GOV website states the HTB ISA and bonus CAN be used to purhcase land but not the construction costs to build a house if land is already owned. I am aware I need to find a self-build mortgage provider, however my question is: If I am to purhcase the land from a family member for a nominal sum (say its MV is £100k but they choose to sell it to me for £1k) could I use the HTB ISA and be eligable for the 25% bonus if I apply for a mortgage to cover the purchase of the land and the construction costs together?
If I was gifted the land I would technically own it already and wouldn't get the benefit of the HTB ISA bonus. Therefore I am trying to find away to make use of the bonus. I have asked my HTB ISA provider and they couldn't answer the question, neither could their in-house mortgage advisers (after 45mins on the phone turns out they don't provide mortgages on self-build anyway!).
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Comments
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on that basis anyone who answers your question on here had best provide authoritative evidence to support what they say, as you are wanting a water tight legal interpretation of the rules, not really something for the internet to provideBLB1987666 wrote: »I have asked my HTB ISA provider and they couldn't answer the question, neither could their in-house mortgage advisers (after 45mins on the phone turns out they don't provide mortgages on self-build anyway!).0 -
I don't think you can have any previous interest in the property (land, house etc) you are buying for the HTB bonus.
I'm pretty sure i had to sign something of this type when my solicitor applied for our bonus. You have never owned a property before, the property has not been sold to you by a family member or relative... etc - so you might have a problem.
P.s that is not the exact wording, but pretty sure there was something of that sort in there, as i was a bit worried that we were already renting the house we bought but it was fine.0
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