Help to Buy ISA guidelines published

Help to Buy ISA guidelines published

The Treasury has published the long awaited conveyancers’ guidelines for the Help to Buy: ISA.

The Treasury say they “introduced the Help to Buy: ISA Scheme in order for the Government to help individuals to save for their first home.

Savers will look to apply for bonuses from the ISAs in the New Year.

However the document states that the scheme is not available to those using Help to Buy mortgages.

The 28 page publication shared by the Council for Licensed Conveyancers (CLC) runs through the administration of the account and the conveyancer’s role in the process.

It also gives details of how to register for the Help to Buy ISA Scheme portal, as well as details of eligibility.

The document states: “The role of the Eligible Conveyancer is to make the Bonus application on behalf of the Help to Buy: ISA Holder, and confirm that the Help to Buy: ISA Holder has declared their eligibility and the property being purchased meets the eligibility criteria.

“This involves sending the Bonus Application to the Administrator, submitting the relevant documentation to the Administrator, submitting a Payment Request following approval, and holding Bonus funds to apply to the purchase of the property.

“The Eligible Conveyancer is also required to verify that the Help to Buy: ISA holder is acquiring an Eligible Interest in land, that the acquisition is funded by a non-buy-to-let mortgage (unless exceptions apply) and that the value of the property is up to £250,000 or £450,000 depending on the location of that property (see clause 7.5(A) – (C) of the Scheme Rules).

“If an Eligible Conveyancer has reason to believe that a Help to Buy: ISA Holder is not eligible for a Bonus, they should not proceed with the Bonus application.

“The process is designed to be quick and straightforward for Conveyancers to follow to protect the value of the home buyer’s Bonus.

“To reflect the simplicity in using the Scheme, Conveyancers may charge the Help to Buy: ISA Holder up to a cap of £50 excluding VAT to fulfil their role as part of the Help to Buy: ISA Scheme.”

Josh Morris

Josh is the Journalist for the Today's Group and writes many of the articles for Today's Conveyancer. He graduated with a degree in Physics from Cardiff University in 2009 before training as a journalist. He has previously written for The Times, The Mirror and The Daily Express.

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