Help to Buy ISA : Finding your way onto the property market
If you are a first-time buyer, putting your cash in a Help to Buy ISA is a no-brainer. You will require a minimum of £1,600.00 saved and the maximum bonus you can acquire is £3,000.00 (on £12,000 savings).
You must not own and never have owned any interest in land, whether in the United Kingdom or elsewhere. If you are buying a property with your partner, they must also be a first-time buyer for the scheme to work for both of you. If your partner is not a first-time buyer you can still apply for the bonus for yourself. Furthermore, for the scheme to work you must have a mortgage and not be a cash buyer.
The bonus can only be used for properties worth up to £250,000.00 or £450,000.00 for properties in London. If you are looking to purchase a property in London, then please contact Help to Buy to ensure you can apply for a bonus as it only includes inner and outer London Boroughs.
If you are buying a property with the sole intention of renting it out, then the scheme will not apply. The whole point of the scheme is to get prospective first-time buyers onto the property market and encourage home ownership. If your circumstances change for example you move abroad and need to put the property on rent, the government will take a common-sense approach to this. You must be careful with regards to this as the government can seek to get there funds back if the property was not intended for sole residence.
Once you have found a property to purchase and you are about to exchange contracts then your solicitors will request a closing statement along with your first-time buyer’s declaration. This will be submitted to the Help to Buy portal in readiness for completion. Please note the bonus cannot be used towards the deposit and can only be used towards the purchase price.
If you are a first- time buyer and require further information, please contact our Conveyancing Team on 0116 2554855.