Many buyers are left confused by the Help to Buy ISA and how to use it. Here is our useful guide containing a list of the questions and answers that we regularly come across …
Is the Help to Buy ISA only used to purchase a new build?
The Help to Buy ISA can be used for any qualifying property. The property does not have to be a new build. The only requirements you must comply with are that:
The property must be in the UK
The purchase price of the property must not exceed £250,000.00 (or £450,000.00 in London)
The property must be purchased with a Mortgage
The property must be the only home you will own and be where you intend on living.
Must I close my Help to Buy ISA immediately after I put an offer on a property?
No. It can take many weeks to complete a conveyancing transaction so you should make as many additional payments as you possibly can to take advantage of a higher bonus.
You should however check how long it will take to obtain the Help to Buy ISA closing letter from your bank, so you will not delay matters once a completion date is known.
How do I close my Help to Buy ISA account?
You need to close your Help to Buy ISA account yourself. Contact the bank where you hold your Help to Buy ISA and ask for guidance, however, most people go into the branch and close the account. The bank will supply you with a closing letter which you must supply to your Conveyancer along with the completed First Time Buyer Declaration which your Conveyancer will supply to you.
How long will a Help to Buy ISA closing letter take?
Some banks will let you have the Help to Buy ISA closing letter immediately. However, it can often take longer… We have had clients where it took two weeks for them to receive the letter.
How do we get our Help to Buy ISA Bonus?
After you have closed your Help to Buy ISA account, you need to supply your Conveyancer with the closing letter along with the First Time Buyer Declaration. This First Time Buyer Declaration is the document signed by you; confirming details of the property and acknowledging that you have abided by the schemes rules and are eligible for the Help to Buy bonus.
Your Conveyancer will upload these two documents to the Government Portal and request the draw-down of your Help to Buy ISA bonus.
The money you have been saving each month is dealt with by your bank but the Help to Buy ISA bonus is sent directly to your Conveyancer. The Help to Buy ISA bonus cannot be sent directly to you and cannot be requested following completion.
What can the bonus be used for?
The Help to Buy ISA bonus cannot be used for any other purpose other than towards the purchase price. The bonus cannot be used towards the deposit as it is only available on completion.
If you would like further information on the Help to Buy ISA, please visit their webpage www.helptobuy.gov.uk.
For more helpful guides and useful information, please visit our website www.quicklyconvey.co.uk
If you are looking for a Solicitor to handle any of your property matters, please contact us on 020 3963 7310 or email us on info@quicklyconvey.co.uk
Please note that these guides are for informational purposes only, and do not constitute legal advice.
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