If you are a first time buyer and looking for help getting onto the property ladder, the Help to Buy ISA may be just what you are looking for. If you are using a help to buy scheme to buy your first property our team can act for you.
What is a Help to Buy ISA ?
Help To Buy ISAs are a Government Scheme, introduced in 2016 to assist First Time Buyers with saving for their first home. It is a tax free savings account wherein the Government will increase your savings by 25% up to a maximum of £3,000.00.
What are the requirements to open a Help to Buy ISA?
You must be 16 or over; have a valid National Insurance Number; be a UK Resident and be a first time buyer (meaning you must not own/have had any interest in a property anywhere else in the world). Please also note that you cannot have/open another active Cash ISA in the same tax year.
How much can you save each month?
You can pay a maximum of £1,200.00 into the account in the first month when you open the account. Following this time you can pay a maximum amount of £200.00 into the account per calendar month.
What if you and your partner are both first time buyers?
You can both have Help To Buy ISAs and use both bonus amounts towards your purchase.
Can your bonus funds be used towards your deposit?
No. The bonus money can only be used as part of the completion money for your purchase.
What happens when you are buying a property?
Your conveyancer will need to request the Bonus from the Government in time for completion. Your conveyancer will require the following documents from you:
First Time Buyer Declaration - https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf
Closing Statement – This will be provided to you by your bank when you close the account. Please ensure you contact your bank to check how long it will take them to produce this statement, because your conveyancer will need to request your bonus at least 5 working days before the completion date. You must therefore ensure the appropriate documents are with your conveyancer in sufficient time.
If you are looking to purchase your first home with the benefit of a help to buy ISA and you require further information, please feel free to contact a member of our specialist residential conveyancing team at RLE Law Solicitors who will be happy to assist.