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Solicitor says they are confident HTB ISA bonus can be used at exchange
mittenss
Posts: 1 Newbie
First time buyer here using (two) Help to Buy ISAs with bonus. We've been aware from the beginning that the bonus from both our ISAs would not be received until completion, so we asked the solicitor to either a.) exchange and complete simultaneously or b.) negotiate exchange at a slightly lower deposit. (We have also planned for the eventuality we have to provide the entire 10% deposit without the bonus, but we'd prefer not to! It would give us some breathing space) We're just at the stage where after August's contribution into the ISA we will close the accounts and give the solicitor all the documents to request the bonus.
Our solicitor however is insisting that if they request the bonus before exchange we will be able to use it towards the exchange deposit. Surely this can't be correct? Has anyone else had this happen? I don't know what else to say to them seeing as how I've already sent quite a few (!) emails expressing my concern...
Our solicitor however is insisting that if they request the bonus before exchange we will be able to use it towards the exchange deposit. Surely this can't be correct? Has anyone else had this happen? I don't know what else to say to them seeing as how I've already sent quite a few (!) emails expressing my concern...
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Comments
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In theory yes you can. If the solicitor requests the bonus to be paid out and submits the forms and the funds are received before exchange then it could be used as an exchange deposit.
https://www.helptobuyisaadmin.org.uk/conveyancers/how-it-works
However, if you do not complete within 3 months then you have to pay the funds back.
Should you not complete due to a breach of contract on your part then you may lose you deposit and have to repay the bonus.
I would firmly instruct that you do not want to use the funds for exchange deposit but want to use them for the completion deposit. Also ask your solicitor to negotiate a lesser exchange deposit based on the fact that you will pay more on completion.0 -
Also, I could've sworn that the scheme rules used to say that you could not apply for the bonus until contracts had been exchanged (or something sinilar) but either i'm mistaken or i'm missing it as it doesn't appear to be in them now (https://www.helptobuyisaadmin.org.uk/sites/default/files/scheme-rules.pdf).0
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