Htb isa help - re-mortgage

J123321 · 17 April 2018 at 10:22AM

Hi All,

Does anyone know if you can use a HTB ISA for a RE-MORTGAE with my partner who is a FIRST TIME BUYER.

I purchased a house 3 years ago. My partner has a HTB ISA in her own name, I am remortgaging and adding her to the mortgage so techinically this is her first home.

Can we use her HTB ISA?

Thanks

eskbanker · 17 April 2018 at 10:52AM

She only qualifies for a HTB ISA bonus if she's actually buying, i.e. going through a properly-conveyanced sale and purchase transaction resulting in her being added to the title deeds, rather than simply being added to a mortgage.

J123321 · 17 April 2018 at 12:11PM

Thanks for you response - basically I bought 35% of a shared ownership property and now I am staircasing to 100%

So I am re-mortgaging for the full 100% of the property with my partner, this is her first mortgage.

Is there a helpline i can call to confirm?

eskbanker · 17 April 2018 at 12:34PM

Your conveyancer should be able to advise, or you could try HMRC's ISA helpline at https://www.gov.uk/government/organisations/hm-revenue-customs/contact/individual-savings-accounts-isa-enquiries

Remember that for shared ownership purchases, it's the full value of the entire property that's taken into account when evaluating HTB eligibility rather than the percentage share, i.e. it needs to be no more than £250K outside London or £450K within London, as per https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#price-cap-shared-ownership:

What is the property price cap for shared ownership schemes?

In the context of shared ownership properties the price cap applies to the full sale price of the property rather than just the share you initially buy. For shared ownership properties the full sale price is a multiple of the equity share you are buying. In practice this means that if you are purchasing a 25% equity share of a property for £50,000, the full sale value is £200,000. Alternatively, your conveyancer can calculate the sale price based on the price paid for the equity share you are buying plus the net present value of rental payments due over the term of the lease.

You should speak to your solicitor or conveyancer and they will be able to advise you on whether the property you are purchasing is within the price limit and is eligible for a government bonus.

Htb isa help - re-mortgage

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