Houses

[Kopic]

32 minutes ago, Leicester_Loyal said:

Anyone in here purchased a property using the Help2Buy ISA? Apparently you can't use the bonus towards the deposit? Very disappointing if true and seems pretty bloody pointless saving in one if true?

 

What happens to the bonus? Does it get paid to you in cash or something after completion? Just spend an hour on the phone to Halifax before being transferred and cut off, so can't be arsed to ring them again.

I started off with the h2b isa, we haven't yet bought a house but discovered this. We ended up getting a lifetime isa which pays the same amount of bonus, but as soon as your money goes into the account, and it can be used towards the deposit. Only use the h2b isa now as it has better interest, and just transfer over to the lifetime before year ends.

[HowardsBulletHeader]

49 minutes ago, Leicester_Loyal said:

Anyone in here purchased a property using the Help2Buy ISA? Apparently you can't use the bonus towards the deposit? Very disappointing if true and seems pretty bloody pointless saving in one if true?

 

What happens to the bonus? Does it get paid to you in cash or something after completion? Just spend an hour on the phone to Halifax before being transferred and cut off, so can't be arsed to ring them again.

Not used it as such but I currently am and this is one of the things about them far more eloquently put by Martin Lewis on the Money saving expert website than me. 

 

Edit: Link: https://blog.moneysavingexpert.com/2016/04/the-help-to-buy-isa-v-lifetime-isa-which-should-first-time-buyers-get/

 

But basically you close the ISA and the solicitor obtains the bonus on your behalf, you then send the solicitor your deposit funds net the bonus and if you wish you can choose to use it to cover their costs. 

 

In simple terms, if you saved £4,000 you'd have a £1,000 bonus to come. With a £10,000 deposit, if your solicitor fees were £500, you'd send the solicitor £9,500 instead of the full £10,000 assuming you wished to use £500 of your bonus to cover solicitor cost and the remainder would then deduct from the deposit. 

 

It is worded horrendously compared to the Lifetime ISA, which has a far simpler premise of "use it towards a first house  and you'll get the bonus which can be used towards the deposit."

 

Please don't think your H2B is pointless though, it definitely isn't, although I completely understand your confusion as I've read countless articles on it myself and been in and out of understanding at various points. 

Edited 4 August 2020 by HowardsBulletHeader
Link added

[Leicester_Loyal]

39 minutes ago, HowardsBulletHeader said:

Not used it as such but I currently am and this is one of the things about them far more eloquently put by Martin Lewis on the Money saving expert website than me. 

 

Edit: Link: https://blog.moneysavingexpert.com/2016/04/the-help-to-buy-isa-v-lifetime-isa-which-should-first-time-buyers-get/

 

But basically you close the ISA and the solicitor obtains the bonus on your behalf, you then send the solicitor your deposit funds net the bonus and if you wish you can choose to use it to cover their costs. 

 

In simple terms, if you saved £4,000 you'd have a £1,000 bonus to come. With a £10,000 deposit, if your solicitor fees were £500, you'd send the solicitor £9,500 instead of the full £10,000 assuming you wished to use £500 of your bonus to cover solicitor cost and the remainder would then deduct from the deposit. 

 

It is worded horrendously compared to the Lifetime ISA, which has a far simpler premise of "use it towards a first house  and you'll get the bonus which can be used towards the deposit."

 

Please don't think your H2B is pointless though, it definitely isn't, although I completely understand your confusion as I've read countless articles on it myself and been in and out of understanding at various points. 

Thanks for that.

 

Yeah I am very confused at the minute, I've got 12k in mine, so should get 3k bonus, but I was planning on using it as part of the deposit, but not sure if I'm able to now. My mortgage advisor says it depends on the lendor, so he's going to ask them for me.

 

So it'll get paid to me, or the solicitor on completion of the exchange? And I can then use the bonus to pay off my solicitor etc.? The way it's worded is horrific, doesn't really help the confusion at all.

 

Luckily my old man said he will loan me 2k, which I can then pay him back once I get my 3k bonus back (This is just if I have to pay all my fees upfront, as the money for the solicitor and my survey is now having to go into my deposit fund)

[Costock_Fox]

8 minutes ago, Leicester_Loyal said:

Thanks for that.

 

Yeah I am very confused at the minute, I've got 12k in mine, so should get 3k bonus, but I was planning on using it as part of the deposit, but not sure if I'm able to now. My mortgage advisor says it depends on the lendor, so he's going to ask them for me.

 

So it'll get paid to me, or the solicitor on completion of the exchange? And I can then use the bonus to pay off my solicitor etc.? The way it's worded is horrific, doesn't really help the confusion at all.

 

Luckily my old man said he will loan me 2k, which I can then pay him back once I get my 3k bonus back (This is just if I have to pay all my fees upfront, as the money for the solicitor and my survey is now having to go into my deposit fund)

You generally can’t because you get the bonus upon completion but you need the deposit to complete.

Edited 4 August 2020 by Costock_Fox

[Leicester_Loyal]

1 minute ago, Costock_Fox said:

You generally can’t because you get the bonus upon completion but you need the deposit to complete.

Yeah that's what I'm finding out now, I've genuinely never known this and I've had the H2B ISA for over 4 years.

 

As said I'll have to use my bonus for solicitor fees, or to pay back my old man the couple of grand he'll lend me to make up the deposit.

 

Should re-name it Help2BuyWhiteGoods instead of Help2Buy, because it bloody ain't helping me!

[Costock_Fox]

37 minutes ago, Leicester_Loyal said:

Yeah that's what I'm finding out now, I've genuinely never known this and I've had the H2B ISA for over 4 years.

 

As said I'll have to use my bonus for solicitor fees, or to pay back my old man the couple of grand he'll lend me to make up the deposit.

 

Should re-name it Help2BuyWhiteGoods instead of Help2Buy, because it bloody ain't helping me!

Banks didn’t even know that when it came out, we had to backtrack when opening them for people from telling them they could use for a deposit, I presume you opened it early?

[Leicester_Loyal]

3 minutes ago, Costock_Fox said:

Banks didn’t even know that when it came out, we had to backtrack when opening them for people from telling them they could use for a deposit, I presume you opened it early?

Yeah I opened it in December 2015, I think it was only a few weeks (if that) after it was introduced. When opening it I was told it would go towards my deposit and I've never even questioned it until yesterday when my mortgage advisor said it might not count and I may be 3k short

[Costock_Fox]

59 minutes ago, Leicester_Loyal said:

Yeah I opened it in December 2015, I think it was only a few weeks (if that) after it was introduced. When opening it I was told it would go towards my deposit and I've never even questioned it until yesterday when my mortgage advisor said it might not count and I may be 3k short

Yep, standard  as long as you didn’t open it where I used to run haha

[Xen]

3 hours ago, Leicester_Loyal said:

Anyone in here purchased a property using the Help2Buy ISA? Apparently you can't use the bonus towards the deposit? Very disappointing if true and seems pretty bloody pointless saving in one if true?

 

What happens to the bonus? Does it get paid to you in cash or something after completion? Just spend an hour on the phone to Halifax before being transferred and cut off, so can't be arsed to ring them again.

Me and my partner both have H2B ISAs with a fair amount built up, but we'd be relying on the bonus to meet any deposit so we've had similar questions ourselves. There was a good thread on reddit about this recently which helped, so I'll see if I can dig it up.

 

As I understand it (albeit, very vaguely so I'd advise getting confirmation!) the deposit is almost split into 2 stages - exchange and completion. Normally you'd be expected to pay the full deposit on exchange and this covers the completion entirely, so there's nothing more to worry about. However, apparently you can speak to your solicitor to see if they can sort a lower exchange deposit with the remainder (the H2B bonus) to be paid on completion. Its apparently a fairly quick turnaround between the two in most cases, so its supposedly pretty easy to arrange. The seller wont receive any money until completion anyway, so there shouldnt be any issue from their point of view.

 

Edit:

Reddit thread with the general advice: https://www.reddit.com/r/UKPersonalFinance/comments/cvfkr3/how_to_buy_your_first_house_for_dummies/

Reddit thread about the H2B bonus: https://www.reddit.com/r/HousingUK/comments/gz1uxq/help_to_buy_isa_deposit_confusion/

 

Which? post explaining how the H2B bonus can work: https://www.which.co.uk/news/2016/08/help-to-buy-isa-how-the-bonus-payment-really-works-451594/

 

 

Edited 4 August 2020 by Xen

[Simi]

Anyone have experience buying a house with the premise you'd need to extend straight away?

 

We're looking at the minute and have decided we'll be better off getting the upstairs bedroom size we need and then extending downstairs to the layout we desire.

 

Just wondering if anyone has done similar and what things would you advise from the experience? Am I right in thinking planning permission isn't required for single storey as long as it's less than 8m (if detached)?

[stix]

2 hours ago, Simi said:

Anyone have experience buying a house with the premise you'd need to extend straight away?

 

We're looking at the minute and have decided we'll be better off getting the upstairs bedroom size we need and then extending downstairs to the layout we desire.

 

Just wondering if anyone has done similar and what things would you advise from the experience? Am I right in thinking planning permission isn't required for single storey as long as it's less than 8m (if detached)?

 

[Footballwipe]

2 hours ago, Simi said:

Anyone have experience buying a house with the premise you'd need to extend straight away?

 

We're looking at the minute and have decided we'll be better off getting the upstairs bedroom size we need and then extending downstairs to the layout we desire.

 

Just wondering if anyone has done similar and what things would you advise from the experience? Am I right in thinking planning permission isn't required for single storey as long as it's less than 8m (if detached)?

Check your local authority and see if you can contact them about what you want to do, they can usually give you some planning advice, let you know if you need to apply for permission, whether what you're looking for is okay.

 

Their knowledge of the local area will be the most reliable thing you can get, I imagine.

[FoyleFox]

5 hours ago, Simi said:

Anyone have experience buying a house with the premise you'd need to extend straight away?

 

We're looking at the minute and have decided we'll be better off getting the upstairs bedroom size we need and then extending downstairs to the layout we desire.

 

Just wondering if anyone has done similar and what things would you advise from the experience? Am I right in thinking planning permission isn't required for single storey as long as it's less than 8m (if detached)?

Brilliant question and very helpful responses. We've looked at a bungalow with a 14' x 11' conservatory at the back which we'd remove and replace with a full width extension, less than 4m(13') deep still, either 11 or 12'. The above, if I'm reading correctly suggests no planning permission required which would mean we could start straight away.

Edit:further info on the planning portal

https://www.planningportal.co.uk/info/200130/common_projects/17/extensions

Edited 5 August 2020 by FoyleFox

[ajthefox]

7 hours ago, Simi said:

Anyone have experience buying a house with the premise you'd need to extend straight away?

 

We're looking at the minute and have decided we'll be better off getting the upstairs bedroom size we need and then extending downstairs to the layout we desire.

 

Just wondering if anyone has done similar and what things would you advise from the experience? Am I right in thinking planning permission isn't required for single storey as long as it's less than 8m (if detached)?

What you need to look up is called Permitted Development. - There are national guidelines but it can differ locally and there are caveats if for example it is a listed building or it's in a conservation area.

 

https://www.planningportal.co.uk/info/200187/your_responsibilities/37/planning_permission/2

 

https://www.legislation.gov.uk/uksi/2015/596/schedule/2/made 

 

Might be helpful to put the postcode into the Local Authorities website and search for nearby planning applications as you'll get a feel for what others have done, should you end up needing permission to be able to build what you want.

 

There are guidance documents available but it's a bloody ballache finding them. 

 

If you approach a local architect they might be willing to visit the property with you for a fee. 

[Ian Nacho]

Anyone know what it's like with mortgages on a fixed term contract? I have a pretty hefty deposit, so I'll only need 40-50% mortgage and after I finish university I'll probably be in some sort of fixed term graduate scheme. Would it be worthwhile to look as soon as I get employment after I graduate, even if it is a fixed term contract, or wait 3 or so years until I can get a 'proper job'?

[rachhere]

2 hours ago, Ian Nacho said:

Anyone know what it's like with mortgages on a fixed term contract? I have a pretty hefty deposit, so I'll only need 40-50% mortgage and after I finish university I'll probably be in some sort of fixed term graduate scheme. Would it be worthwhile to look as soon as I get employment after I graduate, even if it is a fixed term contract, or wait 3 or so years until I can get a 'proper job'?

For my first mortgage back in the day I managed to get one without any real problems. Obviously lenders are cautious at the moment, but seeing you have a large deposit I would think you would have a good shot.  

[Leicester_Loyal]

17 hours ago, Ian Nacho said:

Anyone know what it's like with mortgages on a fixed term contract? I have a pretty hefty deposit, so I'll only need 40-50% mortgage and after I finish university I'll probably be in some sort of fixed term graduate scheme. Would it be worthwhile to look as soon as I get employment after I graduate, even if it is a fixed term contract, or wait 3 or so years until I can get a 'proper job'?

All depends on the lender, some want a decent history (1-2 years of employment), but for the majority of people this is probably required because they only have 5-10% deposit.

 

There's a couple of mortgage advisors/brokers on here who will know a lot more than me, I'm sure they'll reply or PM you once they see this

 

Mortgage valuation happened on my house today, haven't heard anything back from them so I'm assuming all is ok. Got to pay my upfront solicitor fees tomorrow and get the ball rolling now with regards to search fees etc.

[TiffToff88]

Has anyone here ever had to sell a house with nightmare neighbours?

 

Our neighbours are constantly screaming and shouting and banging on walls and we're dreading having to show prospective buyers around when we have all that going on nextdoor. They're a housing association tenant (As are we) and the Housing Association are fully aware of the problems we have with the neighbour but wont do anything because she's a single mum with 4 kids.

 

We know that we will have to declare that we've had problems on all the paperwork and we're legally obligated to tell prospective buyers about the issues we've had so we're concerned that it will put off anyone from buying our house!

[Strokes]

13 minutes ago, TiffToff88 said:

Has anyone here ever had to sell a house with nightmare neighbours?

 

Our neighbours are constantly screaming and shouting and banging on walls and we're dreading having to show prospective buyers around when we have all that going on nextdoor. They're a housing association tenant (As are we) and the Housing Association are fully aware of the problems we have with the neighbour but wont do anything because she's a single mum with 4 kids.

 

We know that we will have to declare that we've had problems on all the paperwork and we're legally obligated to tell prospective buyers about the issues we've had so we're concerned that it will put off anyone from buying our house!

I didn’t know you we’re legally obligated to tell, I never mentioned the scraps I used to get into with my old neighbours. I just said we don’t have much to do with them.

[Costock_Fox]

16 minutes ago, TiffToff88 said:

Has anyone here ever had to sell a house with nightmare neighbours?

 

Our neighbours are constantly screaming and shouting and banging on walls and we're dreading having to show prospective buyers around when we have all that going on nextdoor. They're a housing association tenant (As are we) and the Housing Association are fully aware of the problems we have with the neighbour but wont do anything because she's a single mum with 4 kids.

 

We know that we will have to declare that we've had problems on all the paperwork and we're legally obligated to tell prospective buyers about the issues we've had so we're concerned that it will put off anyone from buying our house!

Sleeping pills 

[TiffToff88]

2 minutes ago, Strokes said:

I didn’t know you we’re legally obligated to tell, I never mentioned the scraps I used to get into with my old neighbours. I just said we don’t have much to do with them.

You are if you had to get a third party involved in the disputes - such as council or police, which we have done!

[Izzy]

23 minutes ago, TiffToff88 said:

Has anyone here ever had to sell a house with nightmare neighbours?

 

Our neighbours are constantly screaming and shouting and banging on walls and we're dreading having to show prospective buyers around when we have all that going on nextdoor. They're a housing association tenant (As are we) and the Housing Association are fully aware of the problems we have with the neighbour but wont do anything because she's a single mum with 4 kids.

 

We know that we will have to declare that we've had problems on all the paperwork and we're legally obligated to tell prospective buyers about the issues we've had so we're concerned that it will put off anyone from buying our house!

Slip her £20 to STFU or go out shopping with the kids while you're showing people around 

[TiffToff88]

1 minute ago, Izzy said:

Slip her £20 to STFU or go out shopping with the kids while you're showing people around 

She'd just roll it up and snort something through it

[Strokes]

13 minutes ago, TiffToff88 said:

You are if you had to get a third party involved in the disputes - such as council or police, which we have done!

I didn’t get either, I prefer to play people at their own game.

They might have done to me though 🤫 

[Rob1742]

4 hours ago, Strokes said:

I didn’t know you we’re legally obligated to tell, I never mentioned the scraps I used to get into with my old neighbours. I just said we don’t have much to do with them.

Yes you have to state if you have had disputes. The information you need to give is vague, but I suppose you leave yourself open to being sued if you don’t declare something that is clearly evident.

 

Edit - just seen this has already been answered 🙈

 

Edited 6 August 2020 by Rob1742