Can a Help to Buy ISA be used with Shared Ownership?
Yes. The government Help to Buy Shared Ownership Scheme means you can buy a minimum of 25% or as much of 75% of a property, and pay rent on the remaining share. It can be a valuable means of getting onto the property ladder if you cannot afford the mortgage on 100% of a home, and you have the option of buying bigger shares in the future if you can afford to do so.
However, there are certain eligibility criteria that need to be met. To qualify for the government bonus, the property you are buying must be:
- Located in the UK
- Worth £250,000 or less, or £450,000 in London
- The only home you will own
- Where you intend to live
- Purchased with a mortgage
You won’t be allowed to rent out the property or use it as a holiday home. However, the government recognises that a person’s personal or professional circumstances could change, in which case they may need to rent out the property.
In this case, it will not claim Help to Buy ISA bonuses back, but if a person claims a bonus and has no intention of making the property their sole residence, the government will seek to get this money back.
For free initial advice on buying a home using a Help to Buy ISA with the Shared Ownership Scheme, get in touch with our Conveyancing Solicitors.
Other Eligibility Requirements
You must have an annual household income of less than £80,000 a year and not be able to buy a home on the open market. There’s no rule that this home buying option is only limited to first-time buyers, but they do make up the majority of those applying.
People seeking to benefit from the government Help to Buy Shared Ownership Scheme must also have a good credit rating and be at least 18 years of age. If you can afford to buy a home on the open market, you won’t be allowed to benefit from the Help to Buy scheme.
This government initiative can be a great opportunity for people who want to get onto the housing ladder, but don’t have enough money to buy a home outright on the open market.
Our nationwide team of Conveyancers and Conveyancing Solicitors offer expert guidance on the legal aspects of buying property and can guide you through the procedures that need to be followed. We understand that many aspects of buying a house can be confusing, so we offer clear and practical legal advice without the jargon.
Simpson Millar is a national law firm with over 500 staff and offices in Bristol, Cardiff, Kingston-upon-Thames, Lancaster, Leeds, Liverpool, London, Manchester, Morecambe and Southport.