Conveyancing in Somerset

Important Information for First-Time Buyers

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If you're a first-time buyer with an existing Help to Buy ISA and planning to use it for purchasing a house or flat, it's crucial to inform your conveyancer at the earliest opportunity. This ensures they're aware of the specific requirements and can guide you through the process effectively.

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Current Status of Help to Buy ISAs

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1. The Help to Buy ISA scheme closed to new applicants on 30 November 2019.

2. Existing account holders can continue saving until 30 November 2029.

3. The government bonus can be claimed until 1 December 2030.

 

Eligibility Criteria

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To qualify for the Help to Buy ISA bonus, you must meet the following criteria:

1. Be a first-time buyer who has never owned property anywhere in the world.

2. Purchase a property worth up to £250,000 outside London or £450,000 in London.

3. Use the property as your only home and intend to live in it.

4. Purchase the property with a mortgage.

 

Bonus and Savings

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• The government will provide a 25% bonus on your savings, up to a maximum of £3,000.

• You can save up to £200 per month in your Help to Buy ISA.

• The minimum amount needed to qualify for the bonus is £1,600, which would result in a £400 bonus.

 

Claiming the Bonus

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1. Close your Help to Buy ISA account when you're ready to buy your first home7.

2. Obtain a closing statement from your ISA provider.

3. Provide the closing statement to your conveyancer at least 5 working days before completion.

4. Your conveyancer will claim the bonus on your behalf, which will be paid out just prior to completion.

 

Important Notes

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• If you hold both a Lifetime ISA (LISA) and a Help to Buy ISA, you can only use the government bonus from one of these accounts when purchasing your first home.

• The Help to Buy ISA is a cash ISA, and you can only save into one cash ISA per tax year with the same provider.

 

For the most up-to-date information and guidance, it's advisable to consult with your ISA provider, conveyancer, or visit the official Help to Buy website.