Confusion over ISA bonus limit

cogrady

Hi there - this is my first post on the forum.

I have some confusion with £250,000 cap/limit that is on the ISA.

We are first time buyers who have successfully bought a house valued (sale price) at £250,000. However, we purchased the house for £260,000 after bidding with the sellers.

On the government websites, it uses the word 'worth' instead of 'value' or 'purchase price'. Going by the meaning of the words used, I would say the house is 'worth' £250,000.

The solicitor and mortgage adviser think we are not liable to receive the bonus since we paid more than £250,000, yet the bank (Halifax) think we are allowed to receive the government bonus.

What are your opinions?

Cheers!

Drp8713

Unless you were buying in London where the limit is £450k, you will not get the bonus. The price is whatever you paid for it, in this case £260k.

What is the maximum that my property can cost to qualify for a government bonus?
To qualify for a government bonus, the property you are buying must have a price of £250,000 or less (or a higher price limit of £450,000 in London) and you must be a first time buyer.

eskbanker

cogrady wrote: »

On the government websites, it uses the word 'worth' instead of 'value' or 'purchase price'.

I don't know which government websites you're referring to but the quote by the previous poster is from the official FAQ at https://www.helptobuy.gov.uk/help-to-buy-isa/faq/, and clause 7.5 of the even-more-definitive detailed scheme rules does clearly spell out a requirement that

the Purchase Price for the Eligible Interest in Land is:
(1) if the Eligible Interest in Land is situated in London, not more than £450,000; or
(2) if the Eligible Interest in Land is situated outside London, not more than £250,000.

So, unfortunately not much scope for contradictory opinions in the face of facts like these I'm afraid....

Alexland

The HTB ISA limit is 250k outside London so if you paid more no bonus.

soulsaver

Should have bought the carpets & curtains etc for £10k...

Alexland

soulsaver wrote: »

Should have bought the carpets & curtains etc for £10k...

I doubt a reputable solicitor would want to participate in a transaction that overvalued the chattels.

Alex