Island Life Magazine Ltd April / May 2016 | Page 123

LEGAL Help from Glanvilles By Lauren Elliott Glanvilles LLP, The Courtyard, St Cross Business Park, Newport, PO30 5BF 01983 527878 [email protected] The Help to Buy: ISA Scheme O n 1st December 2015 the Government introduced the Help to Buy: ISA Scheme to assist first time buyers. This new scheme allows first time buyers to save up to £200 per calendar month with a maximum first monthly lump sum contribution of £1,200. The Government have stated that they will boost these savings by 25 per cent resulting in a £50 Government Bonus for each £200 saved. There is a cap on the Bonus of £3,000, therefore, a first time buyer will need to have saved £12,000 in a Help to Buy ISA (HTB), in order to qualify for the maximum Bonus of £3,000. The Bonus is only available for first time buyers (no legal or beneficial interest in any property, anywhere in the world) of residential property up to the value of £250,000, unless the property is in London; £450,000. The property has to be occupied as the buyer’s only residence and must be assisted by a residential mortgage; the property cannot be rented out or used as a holiday home. The ISAs are available to each first time buyer and not limited to one household, therefore if you are intending to buy with a partner, you could be eligible for a Bonus of up to £6,000 towards your first home. Solicitors have to be registered and approved by the Government scheme to act on behalf of the first time buyer; Glanvilles are registered as a Qualifying Firm. Applying for the Bonus can only commence once an offer has been accepted on a qualifying property and a Solicitor instructed. The buyer then applies to close their HTB ISA directly with their bank. The Bonus will be 25% of the closing balance of the ISA. Once a date for exchange of contracts/ completion has been agreed, the Solicitor will request the Bonus directly from the Government. This process is estimated to take 30 days from the date the buyer closes their ISA. The minimum Bonus payable is £400, which means the buyer needs to have saved at least £1,600 in their ISA. From the date the buyer closes their ISA, they have 12 months within which to claim their Bonus. They will only be able to redeposit funds into their ISA if their property purchase does not go ahead. The HTB ISA can be used alongside the existing Government Help to Buy Schemes. The ISA is available at a range of Banks and Building Societies and buyers should contact each Bank/Building Society with regards to their individual offers/rates etc. Buyers can only have one HTB ISA open at any time. Buyers can open a HTB ISA until 30th November 2019, however the Bonus must be claimed before 1st December 2030. www.visitilife.com 123