HM Treasury produce Help to Buy: ISA Conveyancer Factsheet
HM Treasury have produced a factsheet about the Help to Buy: ISA scheme.
HM Treasury says,
'Since the launch of the Help to Buy: ISA scheme on 1 December 2015, over 60,000 first-time buyers have been supported through the scheme onto the housing ladder.
This has been made possible by the direct role conveyancers play in the Help to Buy: ISA in confirming, applying and claiming a first-time buyer’s government bonus. To support conveyancers in their participation in the Help to Buy: ISA, HM Treasury has produced a Conveyancer Factsheet.'
The factsheet is intended to clarify both the process of claiming the bonus on behalf of clients and also the time during the conveyancing process when the bonus can be used.
There has been some uncertainty and confusion about this.
You will note that, although the clients’ own savings can be used towards the deposit payable on exchange, provided that the necessary steps are taken at the right time, the buyer cannot use the bonus from the government for that purpose. These bonus monies are to be used only as part of the completion monies not as part of the deposit monies.
It is suggested that the factsheet can be used when you are discussing the funding of the purchase with your first-time-buyer clients who are using the scheme.
The factsheet also provides a short note about what happens if a purchase falls through.
You should refer to the Scheme Rules and the Conveyancer Guidelines, as well as the Help to Buy website, for detailed requirements.
Read the factsheet