In a weekly column, solicitor Juliet Phillips-James casts her

Expert eye over a range of legal matters and urges anyone with any questions or problems to come forward for help.

Q AI am purchasing a property and have a Help to Buy ISA, and think I will get a 25% bonus on the money I have saved. How does this work? Firstly, the Help to Buy ISA (HTB ISA) Scheme closed to new accounts in November 2019. Accounts already opened can continue to save until November 2029, and must claim the bonus by November 2030.

The new scheme available to first time buyers will be the Lifetime ISA (keep your eye out for our future article). There is a purchase price limit for this scheme of £250,000, or £450,000 for properties in London. There is a maximum bonus of £3,000, which would equate to £12,000 in savings; and a minimum bonus of £400, with savings of £1,600. Sadly, if you save more than £12,000, you will be unable to claim any additional bonuses. The bonus will be calculated based on the total amount of savings in your HTB ISA at the time of closure, which will include any interest you may have earned from the bank.

The 25% bonus is made available to your Conveyancer on completion; therefore, you will not be able to use the bonus towards your 10% exchange deposit. The bonus must be used towards the purchase itself, not other costs, e.g. conveyancing fees or removals.

You will be required to offer your Conveyancer two documents; 1) a First Time Buyer Declaration (this is you confirming you have never owned/had an interest in a property previously); 2) A Closing Statement.

To obtain a Closing Statement, you will need to arrange closure of your ISA (on the phone; online; or in branch). Each ISA provider will have different requirements and timescales, but, generally, within 10 working days of closure, you will be offered a Closing Statement (either immediately in branch or via post), giving the final balance of your savings. You will need to provide this statement to your Conveyancer, who will submit this with your Declaration to the Help to Buy Scheme at least five working days before completion in order for the bonus to be paid to the firm’s account.

On closure of your ISA, the bank will transfer your savings to your current account, ready for you to transfer to your Conveyancing firm’s client account; you can use these savings towards your 10% exchange deposit.