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  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 1st Dec 15, 3:23 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Help to Buy ISA guide
    • #1
    • 1st Dec 15, 3:23 PM
    Help to Buy ISA guide 1st Dec 15 at 3:23 PM

    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Page 82
    • Fojo
    • By Fojo 1st Nov 18, 10:24 AM
    • 98 Posts
    • 26 Thanks
    Fojo
    transferring HTB ISA to LISA
    Hello, my nephew is looking to buy next year and i help him with his finances. He opened a HTB ISA when they were first introduced and transferred to a LISA last year. Am now looking at a HTB ISA for my 17 year old son and have come across something i hadnt previously considered. As the HTB bonus isnt paid until the house is bought, is my nephew still entitled to a further bonus at house purchase time based on the years that he held his HTB ISA? Thanks folks
    • eskbanker
    • By eskbanker 1st Nov 18, 11:01 AM
    • 9,806 Posts
    • 11,671 Thanks
    eskbanker
    Hello, my nephew is looking to buy next year and i help him with his finances. He opened a HTB ISA when they were first introduced and transferred to a LISA last year. Am now looking at a HTB ISA for my 17 year old son and have come across something i hadnt previously considered. As the HTB bonus isnt paid until the house is bought, is my nephew still entitled to a further bonus at house purchase time based on the years that he held his HTB ISA? Thanks folks
    Originally posted by Fojo
    No, the funds he transferred from his HTB to the LISA will already have been boosted by a 25% bonus so he can't have another one on the same money!

    There's no concept of earning bonuses based on time an account is held, both HTB and LISA pay a bonus based on 25% of a specific amount (balance and contribution respectively) at a point in time and no further bonuses are due on that amount before or after.
    • Fojo
    • By Fojo 1st Nov 18, 11:08 AM
    • 98 Posts
    • 26 Thanks
    Fojo
    Thanks eskbanker. I appreciate he wont get the bonus twice, however i know that the LISA bonus is paid annually into the account and when i was re-reading info on HTB for my son i was struck by the fact that the bonus for that isnt paid until the house is purchased, so am i right in thinking that ultimately he isnt getting any bonus for the year or so that he had the HTB ISA?
    • amylou1685
    • By amylou1685 1st Nov 18, 11:36 AM
    • 1 Posts
    • 0 Thanks
    amylou1685
    Help to Buy ISA
    If I have previously been added to a properties land registry and mortgage to allow my ex to release capital to do renovations on the property and I have not been on the deeds or mortgage since February 2018, I have never bought any houses other than been added to this one for a period of 18 months, does this rule me out of the 'first time buyer' category?


    I have a deposit now which I would like to increase for buying a new house, can I apply for the HTB ISA or not? im so confused.
    • eskbanker
    • By eskbanker 1st Nov 18, 11:37 AM
    • 9,806 Posts
    • 11,671 Thanks
    eskbanker
    i know that the LISA bonus is paid annually into the account
    Originally posted by Fojo
    No - any contribution to a LISA is rewarded with a 25% bonus within 4-8 weeks of the payment being made, regardless of whether it's new money or a transfer from another ISA. The exception was in the 2017/18 tax year when, as a one-off, the LISA bonuses weren't paid until just after the end of the tax year in April 2018 - since then they've been paid on a monthly cycle after any contributions are made.

    am i right in thinking that ultimately he isnt getting any bonus for the year or so that he had the HTB ISA?
    Originally posted by Fojo
    No, he will already have received the 25% bonus on top of the value of his HTB - this will show on his LISA statements if you don't believe me! If he transferred from HTB to LISA during the 2017/18 tax year then he'd have received this bonus in late April or maybe early May 2018....
    • eskbanker
    • By eskbanker 1st Nov 18, 11:41 AM
    • 9,806 Posts
    • 11,671 Thanks
    eskbanker
    If I have previously been added to a properties land registry and mortgage to allow my ex to release capital to do renovations on the property and I have not been on the deeds or mortgage since February 2018, I have never bought any houses other than been added to this one for a period of 18 months, does this rule me out of the 'first time buyer' category?


    I have a deposit now which I would like to increase for buying a new house, can I apply for the HTB ISA or not? im so confused.
    Originally posted by amylou1685
    Yes and no respectively - the criteria are fully explained at https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf, where the start of clause 2 tells you all you need to know:
    I do not own, and never have owned any interest in land....
    • Fojo
    • By Fojo 2nd Nov 18, 4:34 PM
    • 98 Posts
    • 26 Thanks
    Fojo
    much appreciated eskbanker, we did follow martins instructions and transfer at the optimum time to maximise profits so i believe you and will dig out the paperwork at some point!! Thanks again
    • jsu
    • By jsu 16th Nov 18, 1:54 PM
    • 1 Posts
    • 0 Thanks
    jsu
    help to buy and lifetime
    Question - My partner already has a help to buy ISA, I am considering either help to buy or lifetime ISA. We definitely won't be looking to buy in the next year or so. So to me a lifetime ISA makes more sense as I will get a bigger bonus. I know two first time buyers getting a house together can combine their two help to buy ISAs - but, if buying a property together, can one person use a help to buy and the other a lifetime ISA?
    • masonic
    • By masonic 16th Nov 18, 2:40 PM
    • 11,388 Posts
    • 9,014 Thanks
    masonic
    if buying a property together, can one person use a help to buy and the other a lifetime ISA?
    Originally posted by jsu
    Yes
    ______________
    • jennaemerson
    • By jennaemerson 29th Nov 18, 3:55 PM
    • 2 Posts
    • 0 Thanks
    jennaemerson
    I own my home. I want to add my husband to the title of the house by transfer of euiqty (he has not owned a property before). Is he allowed to claim to help to buy ISA bonus?
    • eskbanker
    • By eskbanker 29th Nov 18, 5:14 PM
    • 9,806 Posts
    • 11,671 Thanks
    eskbanker
    I own my home. I want to add my husband to the title of the house by transfer of euiqty (he has not owned a property before). Is he allowed to claim to help to buy ISA bonus?
    Originally posted by jennaemerson
    Yes, as long as the sale and repurchase is processed via a conveyancer who's registered for HTB work, and that the (re)mortgaging is also formally handled properly too.
    • Alexland
    • By Alexland 29th Nov 18, 6:44 PM
    • 4,729 Posts
    • 4,065 Thanks
    Alexland
    You may find the additional legal costs outweigh the benefit of the HTB ISA bonus - a formal sale may require you and your partner to appoint different solicitors. Much harder than adding a name to the land registry and mortgage.
    • Sehzy
    • By Sehzy 11th Dec 18, 12:31 AM
    • 1 Posts
    • 0 Thanks
    Sehzy
    My savings advisor Told me this at the bank.. is it true?
    I am currently saving for my first house with a help to buy isa and a standard savers. With 200 to max my Help to buy and 400 in a standard savers.

    When I purchase, is the bonus paid on whatís in my help to buy only or does it get calculated on my total deposit like the bank said?

    Thanks
    • eskbanker
    • By eskbanker 11th Dec 18, 1:18 AM
    • 9,806 Posts
    • 11,671 Thanks
    eskbanker
    My savings advisor Told me this at the bank.. is it true?
    I am currently saving for my first house with a help to buy isa and a standard savers. With 200 to max my Help to buy and 400 in a standard savers.

    When I purchase, is the bonus paid on whatís in my help to buy only or does it get calculated on my total deposit like the bank said?

    Thanks
    Originally posted by Sehzy
    Some sort of misunderstanding going on here, but the 25% bonus relates specifically to the balance of the Help to Buy ISA and not other accounts....
    • Charlottek
    • By Charlottek 11th Dec 18, 11:29 AM
    • 2 Posts
    • 0 Thanks
    Charlottek
    Hi I am looking at buying my first house in 2/3 years. I currently have around 8,000 in a help to buy ISA but have now been looking into the LISA.
    Is it better to keep going with the help to buy or should I change to a lifetime ISA?
    • Alexland
    • By Alexland 11th Dec 18, 12:54 PM
    • 4,729 Posts
    • 4,065 Thanks
    Alexland
    Hi I am looking at buying my first house in 2/3 years. I currently have around 8,000 in a help to buy ISA but have now been looking into the LISA.
    Is it better to keep going with the help to buy or should I change to a lifetime ISA?
    Originally posted by Charlottek
    The problem is that it would take you 2 tax years to re-wrap the HTB ISA money into a LISA.

    Assuming you have enough remaining ISA allowance then you could do £4k in the remainder of this tax year (just over 3 months) and then another £4k next tax year. However it means you won't be able to contribute any new money until the subsequent tax year starting 06 April 2020 - although you will then be able to contribute £4k at anytime versus the HTB ISA limit of £200 per month.

    As such it really depends on when the property purchase will occur.

    Would the property you expect to buy be within the HTB ISA price cap anyway?

    Alex.
    Last edited by Alexland; 11-12-2018 at 12:58 PM.
    • eskbanker
    • By eskbanker 11th Dec 18, 12:58 PM
    • 9,806 Posts
    • 11,671 Thanks
    eskbanker
    Hi I am looking at buying my first house in 2/3 years. I currently have around 8,000 in a help to buy ISA but have now been looking into the LISA.
    Is it better to keep going with the help to buy or should I change to a lifetime ISA?
    Originally posted by Charlottek
    A simple question but not a simple answer!

    Advantages of LISA over HTB include a higher annual contribution allowance (£4K v £2.4K), a higher property value cap outside London (£450K v £250K) and access to bonus money at exchange time, but disadvantages include lower interest rates and more restrictions on withdrawals. More differences explained at https://www.moneysavingexpert.com/savings/lifetime-isas/#property-6

    As it isn't possible to get the 25% bonus from both products towards a first-time property purchase, you effectively have to decide which one you'll support fully, although if you have enough money available you can fully fund a LISA while also feeding a HTB for the interest rate rather than the bonus.

    If you chose to move your £8K HTB pot over to a LISA it would take two separate tax years to do so, during which time you could continue to fund your HTB, and then at the start of 2020/21 you could move the remaining contributions over.

    How much are you anticipating being able to save each month and what value of property do you expect to be buying?
    • Charlottek
    • By Charlottek 12th Dec 18, 11:57 AM
    • 2 Posts
    • 0 Thanks
    Charlottek
    I would keep putting 200 a month into the HTB but transfer 4000 a year from it into the LISA.
    Iím not too sure how much the property would be but I am looking to buy in the south west and think realistically it would be above 250,000.
    • Alexland
    • By Alexland 12th Dec 18, 12:38 PM
    • 4,729 Posts
    • 4,065 Thanks
    Alexland
    Well if you are buying above £250k but below £450k in the south west then the HTB ISA is only good for the interest rate and your priority should be getting £4k per tax year in a LISA for the 25% bonus.

    Read all the LISA T&Cs carefully as it is a complicated product.
    • tryingtosave85
    • By tryingtosave85 13th Jan 19, 1:46 PM
    • 1 Posts
    • 0 Thanks
    tryingtosave85
    Saving towards a house and retirement
    I've been reading all about these HTB ISA's and also the LISA and i'm a bit confused about how to make them both work for me.

    I have a small amount of savings and i've just opened up a HTB ISA and put the max £1200 in for the first month, but I still have a bit more in savings that I could put somewhere else?

    I am also thinking about my future as i've not really been paying into a pension since I started a limited company and started working for myself.

    It's unlikely that i'll be in a position to buy for another year so should I invest the max into both my HTB and a LISA? But if I decide to then take money out of the LISA to go towards a deposit on a house - how much will I be penalised by the ISA and will i still be eligible for the bonus from the govt at 60 (using the 25% govt bonus on the HTB rather than the LISA).

    I now that both the HTB and LISA will have a maximum I can save - so if I manage to save further on top of that do I just go for a high interest savings account?

    Any help or advice would be much appreciated!
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