Your First Home Is Now Within Your Reach With A Help-To-Buy: Isa
Most individuals would prefer to own a property and pay their own mortgage as opposed to renting their home and paying someone else’s mortgage. If you are saving to buy your first home then the Government will help you towards the deposit and boost your savings by 25% if your savings are held in a Help to buy ISA account.
If you are a first time buyer who has a Help to Buy ISA, follow these tips to help ensure that the purchase of your property goes smoothly;
– Choose a solicitor who has experience and knowledge of dealing with the Help to Buy ISA Accounts and are already registered on the Government’s portal for the Help to Buy ISA system.
– Inform your Bank with whom you have your ISA account that your offer has been accepted and you will be closing your ISA account in order to use the funds and claim the Government bonus
– Once you are ready to proceed legally, request your ISA Closing letter from the Bank setting out details of your Help to Buy ISA (this needs to include your account number and your closing balance) as early as possible as the letter can take a couple of weeks to arrive.
– The bank will ask you to transfer the funds you hold in your ISA account to a different account of your choice so that it shows nil balance before closure.
– Complete and return your First Time Buyer Declaration to your conveyancer as early as possible. This form confirms that you do not own and have never owned any interest in land anywhere in the world.
– You have then done all you need to in order to use your Help to Buy ISA funds and claim your bonus. The funds will be sent directly to your solicitors account on the day of completion to be put towards your purchase.
On the day of completion, the help to buy ISA funds, including bonus, are added to your mortgage advance and any balance due from you to complete and then forwarded to the seller’s solicitors to complete your purchase.
YOU ARE NOW A PROUD HOME OWNER.
LIMITATIONS/CONDITIONS FOR HELP TO BUY ISA
– You need to be a first time buyer (this includes property held anywhere in the world)
– ISAs must be opened by individuals aged 16 years and over, themselves and not on behalf of someone.
– The property you are purchasing should be residential property.
– The price of the property must be less than £250,000 (or £450,000 or less in London).
– Help to Buy ISAs are available to open until 30 November 2019.
– The maximum amount you can save every month is £200 after opening the account. In the first month you can save an additional £1,000.
– The property must be your only home, and cannot be rented out or used as a holiday home.
If you are a first time buyer considering a purchase and would like to instruct conveyancers who are experienced in dealing with Help to Buy ISAs, call Prince Evans’ Residential Conveyancing Team on 020 8280 2732