With effect from November 2019 you will not be able to open a Help to Buy ISA account. However if you already have a Help to Buy ISA you will have until December 2030 to claim the bonus.
We find that some clients struggle with how the help to buy ISA’s work and we have therefore produced a guide as to the Help to Buy ISA below:
In order to claim the Help to Buy ISA bonus you must first qualify for it. The following must be applicable:
- The property must be in the UK
- The purchase price must not be more than £250,000 ( or up to £450,000 in London )
- The property must be the only home you own
- The property must be your main residence.
- The property must be purchased with a mortgage
Once you have qualified for the bonus you can then continue to save and also continue to as well during the conveyancing (legal) process which you will begin once you have decided on a property to purchase.
Once the legal work has been carried out and you have signed your contract documentation we will then look to agree a completion date. Before we are able to agree a completion date we must have received your closing statement which you will receive from your Bank once the account has been closed. The Bank can take up to 10 working days to provide this to you and this can therefore delay completion.
Once you have provided us with the closing statement we will then be in a position to agree a completion date. After the completion date has been agreed we will request your bonus from the Government. The 25% bonus will then be sent to us directly prior to completion.
After we have requested the bonus we will provide you with a completion statement which will show the full amount of the bonus that we are to receive prior to completion. You will then need to provide us with the balance of funds which will consist of the remaining deposit and fees.
The bonus must be used towards the purchase price of the property and we are therefore unable to provide this to you after completion. Therefore the bonus must be received prior to completion in order for this to be used. Completion will then take place as any other transaction.
If you wish to discuss any element of a Help to Buy ISA please do not hesitate to give our offices a call and we will be happy to assist.
Contact Sammy-Jo Woodward, solicitor or Caroline Rooks / John Petrie, Partners at MBH Solicitors, to discuss your conveyancing needs at:
www.wigansolicitors.com Tel: 01942 206060 Address: 26 Bridgeman Terrace, Wigan WN1 1TD