Help to Buy ISA - Incorrect information from solicitor

GG2708

Hi All,

Was hoping for some advice, I bought a shared ownership apartment in April and had a help to buy ISA (First time home). I informed my solicitor of the ISA as soon as I appointed them and they advised no problem and they will contact me to tell me when to close the account so they could apply for the grant, I then closed the account at their guidance and the closing statement was forwarded onto them for proof so they could claim the government bonus of 25%. I hear nothing up until the week before completion to advise that as the full value of the property was worth over £250'000 I was not eligible to claim for the bonus, I asked how as I wasn't buying the full amount (only 30%) but they advised it goes by the full value of the property and not the total amount you purchase so I was left without the government bonus.
Since moving in, I have spoken to several other owners in my block (all of us used the same solicitors as they were recommended by the housing association) and they all had the same type of ISA and all had no issues with applying and claiming for their grant (some moved in before and after me). I am very disappointed that my solicitors had informed me incorrect information and was wondering if there was a way for me to claim for the bonus even though I have been living here for 5 months? If not is there a way of complaining to the solicitors or ombudsman to gain some sort of compensation for my loss of money and misinformation?

Any guidance would be greatly appreciated.

TripleH

Did the solicitor confirm you couldn't claim in writing?

Are you sure others you have spoken to were actually n the same position as you or are just saying they were.

Can you go online and find from the relevant government website that you should have benefited from the bonus?

Before you complain, it is worth gathering as much infirmation together as you can to present with your letter (and written evidence is better than so and so at number 34 said, although if you can reference your neighbour's who used the same law firm and got the bonus include it.

Be polite and to the point, present it as if it was an oversight by them first of all, askfor the relevant parts of the rules they used that say you didn't qualify.

grumiofoundation

I always believed that the help to buy ISA can only be used for shared ownership if the total value - not just about paid - is less than 250k (or 450k in London).

From link found (first search result) seems that is is a bit more complicated than that (apparently to do with 'net present value'

https://www.prince-evans.co.uk/2018/08/21/help-to-buy-isas-for-shared-ownership-purchases/

Do you have evidence that you should have been able to claim the bonus or is this all based on other owners in the block? (as in government doc that makes clear) Is there a possibility some/all of them had a lifetime ISA (for which the limit is 450k) as these are often confused? Or even they were talking about the help to buy equity loan (again, somewhat unhelpfully, both schemes are sometimes referred to as 'help to buy').

I would not expect there is a way to claim the bonus but if your solicitors did actually inform you incorrectly (as opposed to the other owners being in a) different situations or b) they themselves actually being in the 'wrong') then I don't see how you wouldn't be deserving of compensation from them for advising you incorrectly. I think some good suggestions in post above for some good next steps, and would certainly confirm you and other owners were in the exact same situation.