Whilst Help to Buy ISAs are now becoming a thing of the past, there are many prospective First Time Buyers with active accounts. The pandemic has dramatically affected the property market, those most impacted; First Time Buyers.

Please find an overview of the process for closing your Help to Buy ISA and drawing down both your savings and the government Bonus!

  1. To be able to request your Bonus you firstly must be buying your first home of which you intend to live in and have a purchase price of up to £250,000.00 (or up to £450,000.00 in London).
  2. Although it seems counterintuitive, you close the account when advised by your Conveyancer to do so, this is something you will discuss with your Conveyancer nearer the time and will likely be once we near exchange.
  3. Your Conveyancer will ask you to sign a First Time Buyer Declaration.
  4. You will then receive a Closing Statement which you will be required to provide your Conveyancer with. Your Conveyancer will use both when requesting your Help to Buy Bonus.
  5. You must ask the bank to provide you with a Closing statement, which you must then pass to your Conveyancer. You should be aware that the time taken to close a Help to Buy ISA account together with the processing of payment time required by the Scheme Administrator can be at least 12 business days. The ‘Closing Statement or Document’ means a statement provided on letterhead or branded stationary of an ISA manager (ie. where the account is held) in respect of the Help to Buy ISA. The bank will pay you the balance of the account, excluding the bonus.
  6. To obtain the bonus your Conveyancer will be required to submit an online request to include your First Time Buyer Declaration and Closing Statement. A minimum of 5 working days between exchange and completion is required to obtain the bonus from the Government. The bonus must be received by your Conveyancer, to use as part of the funds to complete your purchase, on or before the completion date. Failure to obtain the bonus within the timescale means that your Conveyancer is unable to use the bonus and it will have to returned to the Scheme Administrator.

The GOV.UK website now states that “You can pay into the ISA until November 2029. You can claim the 25% bonus until November 2030” for accounts which were opened before 30 November 2019.

For further information on anything mentioned in this article, please contact us.

WBW Solicitors has offices in Axminster, Bovey Tracey, Brixham, Exeter, Exmouth, Honiton, Launceston, Newton Abbot, Paignton, Seaton, Sidmouth, and Torquay.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.