By Sarah Kent, Conveyancing Assistant
The Government introduced Help to Buy ISAs in 2015 as a way to help first-time buyers get over the primary hurdle of buying a new home: saving for a deposit.
How does it work?
If you make regular payments into your Help to Buy ISA then the government will boost your savings by 25% when you decide to use the ISA to buy your first home. The minimum government bonus is £400 and the maximum is £3,000. Like a regular cash ISA you are restricted as to how much you can pay in at once.
How can I get one?
Many banks and building societies are now offering Help to Buy ISAs to help first time buyers onto the property ladder. Click here to view the list of providers in the scheme.
Am I eligible?
Help to Buy ISAs are available to people who are saving for their first home who meet the following criteria:
- Over the age of 16
- A UK resident
- Have not opened a cash ISA this tax year
- Have never owned any other property anywhere in the world (this includes inheriting an interest in a property)
The property you are purchasing can be up to the value of £250,000 or up to £450,000 if you are buying in London. The property also has to be bought with a mortgage and cannot be let out to tenants.
What do I need to do to apply for my government bonus?
When you have found your perfect home you will need to apply to close your Help to Buy ISA. Your ISA Manager will provide you with a closing statement showing the amount that has been saved and you will need to give this to your Solicitor so they can apply for the government bonus. The statement can take around 7 working days to be issued from the time you make the request.
Our Conveyancing team is accredited by the Law Society’s Conveyancing Quality Scheme so you can be assured that you will receive a high standard of service and client care. For expert legal advice on your new home purchase, contact the Residential Conveyancing today on 0800 138 0458.
Disclaimer: The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice, and the law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice on their own particular circumstances.