HTB - Buying into a property

MGardner91

Hi 

My girlfriend bought her property in October 2020. I have my own individual help to buy ISA and we are currently looking into me buying into the property in October when her fixed rate comes to an end. Would I be able to use my help to buy ISA as this is technically the a first time buy for myself. She bought the house as a first time buyer also back in 2020 using a ISA. Just trying to work out if I could apply the 25% government bonus on my savings.

Any information would be appreciated

eskbanker

Provided the property value is within the HTB ISA limit, you can indeed buy into it and use your HTB ISA, but only by engaging a conveyancer to handle the transaction, i.e. it's not simply a case of taking out a new joint mortgage.

jamesyhull

eskbanker said:

Provided the property value is within the HTB ISA limit, you can indeed buy into it and use your HTB ISA, but only by engaging a conveyancer to handle the transaction, i.e. it's not simply a case of taking out a new joint mortgage.

I want to do the same but solicitor is saying can't do it as not a purchase?? I can't see anything on gov website confirming 100% either way, technically you should be able to use it as if you didn't and they moved house you wouldn't be a first time buyer as already own a property. Do you have a link to anywhere confirming you can use this when 'buying in' to a property already owned by a partner? Thanks Lee

masonic

jamesyhull said:

eskbanker said:

Provided the property value is within the HTB ISA limit, you can indeed buy into it and use your HTB ISA, but only by engaging a conveyancer to handle the transaction, i.e. it's not simply a case of taking out a new joint mortgage.

I want to do the same but solicitor is saying can't do it as not a purchase?? I can't see anything on gov website confirming 100% either way, technically you should be able to use it as if you didn't and they moved house you wouldn't be a first time buyer as already own a property. Do you have a link to anywhere confirming you can use this when 'buying in' to a property already owned by a partner? Thanks Lee

The solicitor is correct. A qualifying transaction must be a formal at-arms-length sale by one party to another, where each party is represented by an independent solicitor. You would also need to take out a new mortgage. The fees associated with all of that would not be insignificant, and would eat into any HTB ISA bonus received. If you are a FTB living in the home of your partner and wish to use your HTB ISA in the future, you can do so when you next move house providing you don't acquire a stake in your partner's current property.

eskbanker

jamesyhull said:

eskbanker said:

Provided the property value is within the HTB ISA limit, you can indeed buy into it and use your HTB ISA, but only by engaging a conveyancer to handle the transaction, i.e. it's not simply a case of taking out a new joint mortgage.

I want to do the same but solicitor is saying can't do it as not a purchase??

But that's the point - it has to be handled as a purchase, i.e. formally buying into ownership of the property.

jamesyhull

eskbanker said:

jamesyhull said:

eskbanker said:

Provided the property value is within the HTB ISA limit, you can indeed buy into it and use your HTB ISA, but only by engaging a conveyancer to handle the transaction, i.e. it's not simply a case of taking out a new joint mortgage.

I want to do the same but solicitor is saying can't do it as not a purchase??

But that's the point - it has to be handled as a purchase, i.e. formally buying into ownership of the property.

So what are the steps I need to do then? She is buying into the ownership of the property..

jamesyhull

masonic said:

jamesyhull said:

eskbanker said:

Provided the property value is within the HTB ISA limit, you can indeed buy into it and use your HTB ISA, but only by engaging a conveyancer to handle the transaction, i.e. it's not simply a case of taking out a new joint mortgage.

I want to do the same but solicitor is saying can't do it as not a purchase?? I can't see anything on gov website confirming 100% either way, technically you should be able to use it as if you didn't and they moved house you wouldn't be a first time buyer as already own a property. Do you have a link to anywhere confirming you can use this when 'buying in' to a property already owned by a partner? Thanks Lee

The solicitor is correct. A qualifying transaction must be a formal at-arms-length sale by one party to another, where each party is represented by an independent solicitor. You would also need to take out a new mortgage. The fees associated with all of that would not be insignificant, and would eat into any HTB ISA bonus received. If you are a FTB living in the home of your partner and wish to use your HTB ISA in the future, you can do so when you next move house providing you don't acquire a stake in your partner's current property.

What do you mean by a new mortgage please?

eskbanker

jamesyhull said:

eskbanker said:

jamesyhull said:

eskbanker said:

Provided the property value is within the HTB ISA limit, you can indeed buy into it and use your HTB ISA, but only by engaging a conveyancer to handle the transaction, i.e. it's not simply a case of taking out a new joint mortgage.

I want to do the same but solicitor is saying can't do it as not a purchase??

But that's the point - it has to be handled as a purchase, i.e. formally buying into ownership of the property.

So what are the steps I need to do then? She is buying into the ownership of the property..

Each person appoints a solicitor to act on their behalf, who will explain what's involved in changing the title deeds, etc, and arrange the necessary paperwork and other admin, and should give an indicative cost up front....

jamesyhull said:

What do you mean by a new mortgage please?

Any HTB ISA property purchase needs to include a mortgage on the property, so if changing from sole ownership to joint, that will entail a new mortgage, even if there isn't one currently.

Rich2808

Yes - you didn't think George Osborne would design a first time buy incentive which didn't involve lawyers and banks/the financial sector getting a cut. If it is about encouraging home ownership solely - none of these things would be needed. Your name is on the deeds, you are now a home owner, here's your help to buy isa bonus cash!

eskbanker

Rich2808 said:

Yes - you didn't think George Osborne would design a first time buy incentive which didn't involve lawyers and banks/the financial sector getting a cut. If it is about encouraging home ownership solely - none of these things would be needed. Your name is on the deeds, you are now a home owner, here's your help to buy isa bonus cash!

That's one way of looking at it, but conversely, in terms of getting named on property deeds, this always has to be enacted by qualified professionals on each side of a transaction, so is hardly anything HTB related as such, and as the incentive is aimed at those needing assistance with a first-time purchase, those genuinely in that situation will naturally require a mortgage, as it would be a waste of taxpayers' money to be throwing it at those able to buy properties wholly with cash.

jamesyhull

eskbanker said:

jamesyhull said:

eskbanker said:

jamesyhull said:

eskbanker said:

Provided the property value is within the HTB ISA limit, you can indeed buy into it and use your HTB ISA, but only by engaging a conveyancer to handle the transaction, i.e. it's not simply a case of taking out a new joint mortgage.

I want to do the same but solicitor is saying can't do it as not a purchase??

But that's the point - it has to be handled as a purchase, i.e. formally buying into ownership of the property.

So what are the steps I need to do then? She is buying into the ownership of the property..

Each person appoints a solicitor to act on their behalf, who will explain what's involved in changing the title deeds, etc, and arrange the necessary paperwork and other admin, and should give an indicative cost up front....

jamesyhull said:

What do you mean by a new mortgage please?

Any HTB ISA property purchase needs to include a mortgage on the property, so if changing from sole ownership to joint, that will entail a new mortgage, even if there isn't one currently.

Yes there is a mortgage on the property and there will be when we are both on the property. If I sold this house and we both bought one together she could use the HTB ISA as first time buyer, so there shouldn't be any difference in her buying into this property should there..?