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2017-21 help to buy scheme - megathread. All help to buy discussion here please

PedroDublin

Hello everyone, what do you think the purchase date mean on the new help to buy scheme? Contracts signed by buyers, contracts received, mortgage withdrawal, closing date..... I have seen different things on different news

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BrosnanL27

Can anybody please advise on this scenario. If we sign contracts for a new build that are dated November 2020 (with the property itself not being ready to move into until March 2021) can we apply for the HTB grant in January 2021? The reason we do not want to apply for it now is that we will be able to make a bigger claim in the new year as we will be able to include 2020 tax. So by signing contract this year we would need to use our own savings to pay the 10% deposit.

laoise6

BrosnanL27 wrote: »

Can anybody please advise on this scenario. If we sign contracts for a new build that are dated November 2020 (with the property itself not being ready to move into until March 2021) can we apply for the HTB grant in January 2021? The reason we do not want to apply for it now is that we will be able to make a bigger claim in the new year as we will be able to include 2020 tax. So by signing contract this year we would need to use our own savings to pay the 10% deposit.

I should think you can as people were able to make backdated claims after purchasing their property. I’d message revenue to be sure so you have something in writing before you sign.

I’m in the same boat but explained the situation to the developer and have asked to sign in January 2021 - they seem ok with this, so far anyway.

Renjit

laoise6 wrote: »

I should think you can as people were able to make backdated claims after purchasing their property. I’d message revenue to be sure so you have something in writing before you sign.

I’m in the same boat but explained the situation to the developer and have asked to sign in January 2021 - they seem ok with this, so far anyway.

But what happens when you have signed the contract already?

bulmersgal

BrosnanL27 wrote: »

Can anybody please advise on this scenario. If we sign contracts for a new build that are dated November 2020 (with the property itself not being ready to move into until March 2021) can we apply for the HTB grant in January 2021? The reason we do not want to apply for it now is that we will be able to make a bigger claim in the new year as we will be able to include 2020 tax. So by signing contract this year we would need to use our own savings to pay the 10% deposit.

I'm in same boat as you. I've sent enquiry to revenue last week to see what they say. Will update when I get answer. I'm hoping they let me use 2020 tax as it's 8k less I will have to pay

BrosnanL27

Thanks for the replies. Have sent an enquiry to Revenue too. Here's hoping they'll allow it.

BrosnanL27

BrosnanL27 wrote: »

Can anybody please advise on this scenario. If we sign contracts for a new build that are dated November 2020 (with the property itself not being ready to move into until March 2021) can we apply for the HTB grant in January 2021? The reason we do not want to apply for it now is that we will be able to make a bigger claim in the new year as we will be able to include 2020 tax. So by signing contract this year we would need to use our own savings to pay the 10% deposit.

Revenue got back to me:

In reply to your query, yes you can make your HTB application in 2021 to enable you to include tax year 2020. However you should note that the claim will need to be verified by your developer and payment is made directly to their bank account

So sounds like it's down to the developer basically.

Milena009

Hi guys, not quite sure where to ask so lets see.

I will be applying for HTB next year with himself.

When i ''test'' the application it shows 12k on his account but doesn't show ''group max relief' if it makes sense.

Could it be cause 2018, 2019 i was under ''umbrella company' and registered for income tax rather than PAYE only?

Probably will need to ring up Revenue next year

sandman1212

Milena009 wrote: »

Hi guys, not quite sure where to ask so lets see.

I will be applying for HTB next year with himself.

When i ''test'' the application it shows 12k on his account but doesn't show ''group max relief' if it makes sense.

Could it be cause 2018, 2019 i was under ''umbrella company' and registered for income tax rather than PAYE only?

Probably will need to ring up Revenue next year

That shouldn’t be an issue as I was in the same situation as you are. You need to ensure your tax returns are completed and get your tax clearance. There is a bug on the system even if that’s completed, but 10 mins after giving them a call to enquire about the tax clearance, I got the confirmation and the group approval updated.

Hope this helps.

Milena009

BrosnanL27 wrote: »

Revenue got back to me:

In reply to your query, yes you can make your HTB application in 2021 to enable you to include the tax year 2020. However, you should note that the claim will need to be verified by your developer and payment is made directly to their bank account

So sounds like it's down to the developer basically.

Got a variation of that question myself

Given the HTB is due to expire the 10% refund at 12/21, if I find / deposite late next year, do i just need to sign the initial contract to be eligible for htb or does it has to be drawdown [ assuming that would be 2022]

So the question, for HTB does contract signage ''subject to finance'' is ok for HTB or does it require active drawdown?

I am deeply saving right now so just trying to mentally categorize things :P

GingerLily

Milena009 wrote: »

Got a variation of that question myself
Given the HTB is due to expire the 10% refund at 12/21, if I find / deposite late next year, do i just need to sign the initial contract to be eligible for htb or does it has to be drawdown [ assuming that would be 2022]

So the question, for HTB does contract signage ''subject to finance'' is ok for HTB or does it require active drawdown?

I am deeply saving right now so just trying to mentally categorize things :P

Some developers take HTB as deposit with your contract, some won't wait for the drawdown process at contract stage and will only take the money at drawdown.
Most will accommodate you and drawdown at contract and use that as part/whole of your deposit and you'll then pay the balance at drawdown.

Renjit

BrosnanL27 wrote: »

Revenue got back to me:

In reply to your query, yes you can make your HTB application in 2021 to enable you to include tax year 2020. However you should note that the claim will need to be verified by your developer and payment is made directly to their bank account

So sounds like it's down to the developer basically.

How did it go with the developer? Did you pay the remaining amount at the time of signing the contract?

BrosnanL27

Renjit wrote: »

How did it go with the developer? Did you pay the remaining amount at the time of signing the contract?

Still waiting to hear back from the developer that they're happy to process our HTB in Jan. As soon as we get confirmation the signed contracts will be sent to them and we will pay the 10% deposit out of savings.

Meandyou999

HTB eligibility. First time buyer status. Parents bought a house in my name 15 years ago when i was 18 as first time buyers were exempt from paying stamp duty back then hence why they put it in my name on the deeds, house was boughy for cash with the sale proceeds from the previous home they were in. They sold n bought. No mortgage, house bought in my name, am i still a first timer buyer to get the HTB???
Thanks.

Liam k

Hi,

I am a home owner in my own name. If my wife was to build a house in her name instead of joint names is she eligible for the HTB scheme.

Per the below example from Revenue it would appear that she is (as it isn't a joint application) but doesn't explicitly say it.

Thanks

Example 3
Denise and Noel are looking to buy a home together valued at €350,000. Noel is a first time
purchaser but Denise has bought a house previously. If they are buying the property jointly they
would not qualify for the Help to Buy scheme as Denise has previously owned a house.

Renjit

BrosnanL27 wrote: »

Still waiting to hear back from the developer that they're happy to process our HTB in Jan. As soon as we get confirmation the signed contracts will be sent to them and we will pay the 10% deposit out of savings.

Ok, so you will pay whole 10% deposit out of your savings now. And then claim HTB later and developer will give you back your 10% deposit.

BrosnanL27

Renjit wrote: »

Ok, so you will pay whole 10% deposit out of your savings now. And then claim HTB later and developer will give you back your 10% deposit.

Yes ideally this is how we want it to work. Revenue have said it's ok to do this (even though contracts will be dated 2020 and the HTB won't be processed until 2021). Hopefully it all goes to plan!

Meandyou999

JohnnyChimpo

Meandyou999 wrote: »

HTB eligibility. First time buyer status. Parents bought a house in my name 15 years ago when i was 18 as first time buyers were exempt from paying stamp duty back then hence why they put it in my name on the deeds, house was boughy for cash with the sale proceeds from the previous home they were in. They sold n bought. No mortgage, house bought in my name, am i still a first timer buyer to get the HTB???
Thanks.

Nope, and I wouldn't go drawing too much attention to that transaction if I were you

cant26

Meandyou999 wrote: »

HTB eligibility. First time buyer status. Parents bought a house in my name 15 years ago when i was 18 as first time buyers were exempt from paying stamp duty back then hence why they put it in my name on the deeds, house was boughy for cash with the sale proceeds from the previous home they were in. They sold n bought. No mortgage, house bought in my name, am i still a first timer buyer to get the HTB???
Thanks.

No you are obviously not a first time buyer as you already own a house. Your parents tax evasion has cost you the chance of using the HTB incentive.

Meandyou999

cant26 wrote: »

No you are obviously not a first time buyer as you already own a house. Your parents tax evasion has cost you the chance of using the HTB incentive.

Tax evasion yes but illegal no. You could have 29 kids and put a different house in each if there names. There is notting illegle about that.

Meandyou999

JohnnyChimpo wrote: »

Nope, and I wouldn't go drawing too much attention to that transaction if I were you

Tax evasion yes but illegal no. You could have 29 kids and put a different house in each if there names. There is notting illegle about that.
I have never bought my own home, the banks status on first time buyer's is that they have never taken out a mortgage to buy a home. Revenue policy is different meaning Never owned a home.

GingerLily

Liam k wrote: »

Hi,

I am a home owner in my own name. If my wife was to build a house in her name instead of joint names is she eligible for the HTB scheme.

Per the below example from Revenue it would appear that she is (as it isn't a joint application) but doesn't explicitly say it.

Thanks

Example 3
Denise and Noel are looking to buy a home together valued at €350,000. Noel is a first time
purchaser but Denise has bought a house previously. If they are buying the property jointly they
would not qualify for the Help to Buy scheme as Denise has previously owned a house.

I think you run into difficulties with the mortgage and being married, the bank will want you to take out a joint mortgage, and if so it will be a joint HTB, so no you can't take it out.
Not sure if banks allow married couples to take out single loans, if your wife can get the mortgage without you then she'd be okay for HTB AFAIK

Liam k

GingerLily wrote: »

I think you run into difficulties with the mortgage and being married, the bank will want you to take out a joint mortgage, and if so it will be a joint HTB, so no you can't take it out.
Not sure if banks allow married couples to take out single loans, if your wife can get the mortgage without you then she'd be okay for HTB AFAIK

Thanks that's what I think aswell.

I recently switched provider and they allowed me to keep in my name only as I explained that we might be moving soon so hopefully they will do similar for her this time. It'd be serious help to get 30k towards the purchase

Local_Chap

cant26 wrote: »

No you are obviously not a first time buyer as you already own a house. Your parents tax evasion has cost you the chance of using the HTB incentive.

Not sure why you have that tone, there's nothing obvious about it.

If it was gifted or you inherited it, you are eligible. It would be worth your while looking into it a bit more OP.

https://www.revenue.ie/en/property/help-to-buy-incentive/who-can-claim-the-help-to-buy-htb.aspx

newhouse87

Just wondering so i dont get caught out, im approved for the full 30grand and the value of the house will be 327000 so i will get 245k mortgage which will be 75%, on step 2 of my claim they ask for amount of deposit already paid, what does this mean for a self build and does it affect the amount i receive?

Step 2
You will be asked to confirm details about the:
- property
- purchase price (if you are purchasing) or approved valuation (if you are self-building)
- date of completion
- mortgage
- amount of deposit already paid.

cant26

Local_Chap wrote: »

Not sure why you have that tone, there's nothing obvious about it.

If it was gifted or you inherited it, you are eligible. It would be worth your while looking into it a bit more OP.

https://www.revenue.ie/en/property/help-to-buy-incentive/who-can-claim-the-help-to-buy-htb.aspx

There is no tone. It’s very obvious. The poster did not mention a gift or inheritance. They explained that their parents purchased a property in the posters name to avoid paying stamp duty. If it was a gift or an inheritance the poster would be open to gift tax or inheritance tax which they never mention.

cant26

Meandyou999 wrote: »

Tax evasion yes but illegal no. You could have 29 kids and put a different house in each if there names. There is notting illegle about that.

I never said it was illegal!

Bubbaclaus

Meandyou999 wrote: »

Tax evasion yes but illegal no. You could have 29 kids and put a different house in each if there names. There is notting illegle about that.

Tax evasion is illegal.

Meandyou999

Bubbaclaus wrote: »

Tax evasion is illegal.

So would an accountant telling you the best way to avoid paying tax or how save paying on tax be illegal?
Its not tax evasion if its not illegle. Its being smart
Its NOT illegle to buy a house and put it in someone else's name so how would it be classed as being ""tax evasion illegal"".

BrentMused

Hello,

Sorry for the very basic question and I'm sure it's been answered 100 times, but with regards to the Help to Buy scheme I just want to get some clarification around potential deposit needed.

Say the new house price is €250,000. Ordinarily you'd be looking at a 10% deposit needed, so obviously €25,000. However, with the Help to Buy, 10% of the value of the property will be covered under the scheme?

Banks will obviously be looking for a track record of savings, a lump sum saved up to show ability to save etc, but is it now the case where if you satisfy the requirements of the bank that you don't necessarily need to have that sort of a deposit saved if the Help to Buy is essentially covering it? Or is that not how it works at all? :pac:

Thank you.