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What is a Help to Buy ISA?

A Help to Buy ISA is a new type of ISA which have been created to help first-time buyers save for a deposit for their home. As you are busy saving for your deposit you’ll receive a helping hand from the government to boost your savings amount and help you to get onto the housing ladder. The government will add a generous 25% on to your savings, up to a maximum of £3,000 on savings of £12,000 (this is per first time buyer. So, if you and your Partner both open an account you could receive up to £6,000 on top of your own savings).

Find out more and get organised!

As soon as you decide you want to start saving for your first home you need to set up an ISA account with your bank. This means you start saving as soon as possible as the more money you save the more you will benefit from the scheme.

Make sure you know the limits of the scheme

  • The government boosts your savings by 25% (i.e. a bonus of £50 for every £200 you save)
  • You can save up to £200 per month
  • The maximum bonus you can claim is £3,000 so to get the best bonus you would need to save £12,000
  • The house you purchase must cost a maximum of £250,000 (or £450,000 in London)


When you have found a house to buy…Tell us you hold a HTB ISA as soon as possible. Our initial information forms will ask you about this

  • Complete the forms we send you

Once we are aware you wish to take advantage of the scheme, we will send you a form to complete giving us information about your ISA account and asking for your authority to apply for the bonus on your behalf.

  • Go to your bank to close the account before completion happens (we will talk to you about this)

Your money will be sent to another account for you. You will need to instruct your bank that you wish to close the account and they will transfer your savings into another account of your choosing. They will then provide you with a closing statement.

  • Provide us with the closing statement

We need to submit this to the government website to prove to them the amount of savings you had in your ISA.

We will submit your signed authority form and closing statement to government website with a request for funds a few days before you complete your purchase and you will receive a letter from the government, through us, confirming the bonus has been approved and is being transferred to us.

  • We will ask you for your deposit less the sum we expect to receive from scheme

Don’t worry if this means you have less than a 10% deposit. Most sellers will agree to a lower deposit in these circumstances. You will receive statements from us showing the bonus sum we expect to receive.

  • We receive the HTB Bonus before completion and use this towards the purchase price.


If you are a first time buyer and you’re interested in a Help to Buy ISA…

We have a specialist team who have processed hundreds of Help to Buy ISA’s and would be happy to help you with any questions you may have. Simply call us on 01623 45 11 11.

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Beginners Guides, Buy to let, Change conveyancer, Contract, conveyancer, Conveyancing, Conveyancing Quote, Deposit, Do your own conveyancing, First Time Buyers, Property, Property Market, property owner, Property Report, property searches, Quicker conveyancing, Stamp duty    No Comments


We know that moving house can be a stressful time and there is a lot of information to take in and understand. Our experienced conveyancers have pulled together a quick A-Z reference guide of the most common conveyancing terms to help you through the process.


The legal document you sign to agree to sell or buy the house. But do not worry nothing is set in stone until Exchange of Contracts. See below.


Is if either party pulls out once Contracts have been exchanged.


The day you move out of your old home and get the keys to your new one!


This is usually 10% of the purchase price, which we require to be paid to us to Exchange Contracts.


This is the day you DO NOT look back as you are legally tied into the deal!


A list of things the seller has agreed to leave you.


Where another buyer puts a higher offer in than yours.


A Survey that we would strongly advise you have carried out on the property. BUYER BEWARE!


This is a search carried out to see if a property is registered at the Land Registry.


Means your share in the Property if you passed away would automatically pass to the surviving owner.


This is the trust you can put in us to know how to do the job.


These are your deeds showing your ownership of the property and are held electronically by HM Land Registry.


The document you sign to confirm you will pay your mortgage payments to the mortgage company during the term of your mortgage.


When the amount you owe on your mortgage exceeds the value of the Property.


The signing of a Deed by a person living in the property who is not the owner confirming that they will move out on completion of a sale or if the mortgage company takes possession of the property.


The document the seller fills in which asks lots of questions about the property, such as boundaries, alterations to the property, legal rights, utilities details.


Is a general legal right over land, it could be something which is used for the benefit of the property, such as right of way, drainage etc.


The amount owed on your existing mortgage.


Tax which has to be paid to the Inland Revenue on the purchase of a property.


The document which is sent to the Land Registry on completion and registers the property in your names.


Where someone else has registered an interest on the title deeds to your property.


Another term used for the seller.


A deed entered into by Service Providers to install piping or cabling over or under the property for your use of electricity, water etc,


We always mark where we require you to sign deeds and documents with an X.


As our client YOU are important to us and we will ensure we do our very best.


Sleep easy while we make Conveyancing a stress free experience for you!

If you would like a conveyancing quote please call 01623 45 11 11 or visit our website for more information. Have a look at our frequently asked conveyancing questions or to see a guide to how the conveyancing process works.

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Deposit    6 Comments

If I had to pick one area in conveyancing where people have wasted hours talking at cross-purposes then it would be about the word ‘Deposit’. When a buyer walks into a solicitors office they are absolutely clear what the word means. The solicitor in turn is also absolutely clear what the word means. The only problem is that they are each thinking different things. This guide is meant to de-mystify the word Deposit and hopefully avoid misunderstanding.

So there are 2 ways of looking at a Deposit – the ‘Normal’ way and the ‘Legal’ way. Here’s how they differ:-

The ‘Normal’ meaning of a conveyancing Deposit
If you’re purchasing a property and you are a human being (as opposed to a solicitor), then when you say the word ‘deposit’ in relation to purchasing a house you usually mean the amount of money you yourself are putting down (as opposed to the amount that you are borrowing on a mortgage). So if you’re borrowing 60% of the purchase price on a mortgage then you in turn are going to put down a deposit of 40%. That’s what most people mean when they first walk into an estate agents or solicitors office and people start having a conversation about deposits

The ‘Legal’ meaning of a conveyancing Deposit
OK here’s the science bit. As solicitors are involved you can trust us to do things a bit differently. In the conveyancing process there is a clear and definite meaning to the word deposit. To explain this you have to firstly know a bit about the house purchasing, or conveyancing, process. Conveyancing takes place in two main parts – before contracts have been exchanged, and after contracts have been exchanged.

Before contracts have been exchanged:-
up until the nanosecond that contracts are exchanged, either party can pull out of the transaction, with no comeback. You can have been in negotiations for months and months, and be all ready to exchange contracts. You might even have agreed you’re going to move in the following week. Even thought everything is gearing up to it all moving ahead, at this stage, if the other party change their mind then there’s nothing you can do about it.

After contracts have been exchanged:-
Everything changes with exchange of contracts. From that moment on you are bound to buy the property, and the seller is bound to sell the property, at the price that is set out in the contract. This all has to happen on the date entered in the contract for completion (the completion date). Once contracts have been exchanged then if one party pulls out the other party can sue them for damages.

I told you the science bit was coming didn’t I, well here it is. When you exchange contract you have to hand over some money as an indication that you are serious about purchasing it. The money that you hand over is what solicitors call the deposit. Usually this is meant to be 10% of the purchase price. Over the last 25 years however it became normal for sellers to allow the buyers to pay over a reduced deposit (usually because the buyer was having a 95% or 100% mortgage – so they just didn’t have 10% lying around). Even if the seller agrees to accept a reduced deposit, if the buyer then pulls out of the transaction they are liable to lose the full 10%. So if they’ve only paid over 5% then they pull out the seller can keep that 5% and sue the buyer for the other 5%.

So imagine you’re purchasing a property for £100,000, and you’re having a £70,000 mortgage to help you. Your understanding of the deposit would be that it’s £30,000 – that’s the amount you’re putting down on the property. The solicitors understanding of the deposit is that it will probably be 10% of the purchase price (£10,000).

It might sound like I’m labouring a simple point here, but the problem often crops up because both the buyer and the solicitor walk to each other with a clear understanding with what they mean by the deposit – but both meanings are different.

What about a chain of transactions – what happens then?
So what happens if you have a chain of transactions – i.e. A is selling to B who’s selling to C who’s selling to D. In theory each buyer would take the deposit coming in on their sale and have to make it up to 10% before passing it over on their purchase. That is actually the correct situation and some sellers will insist on this (and they are perfectly entitled to). The normal course of events however is that whatever deposit is handed over at the bottom of the chain (i.e. by the first time buyer) is then passed up the chain, so the people in the middle of the chain don’t have to find anything extra for their deposit.

Holding deposits – paid to the Estate Agent
Sometimes Estate Agents may ask for a small deposit to ‘hold’ the property for you, or as an expression of goodwill. BEWARE! Handing over of a deposit at this stage does not bind the seller to sell to you at all. They can sell elsewhere and you can do nothing about it. Even though our advice would be not to do this, you may still want to do it (if it’s not a large amount) because you are wanting to keep the estate agent sweet. However it is generally only the estate agent who would benefit from this by having the holding deposit money in their bank account, earning them interest. You should be able to get your deposit money back from the estate agent if it all falls through, but if you haven’t handed it over in the first place then you won’t need to worry about getting it back will you?

Giving a ‘holding’ deposit direct to the seller
No no no no no no NO! We have had clients that have done this (years ago now) – they have fallen in love with a house and in an effort to convince the seller that they are deadly serious about it they have given them tens of thousands of pounds in cash. This is about as risky as you can get. The seller can take your money and spend it on a new car, and then sell the property to someone else. In these circumstances you could sue the seller for your money, but that’s never ever ever as good as holding onto the money in the first place. As an example the seller could clear off massive gambling debts with your money – when you sue them they own nothing and the house is in negative equity. You’ll get nothing, apart from a legal bill when you try and get your money back.

I’m painting a black picture here but it’s important that you understand the risks involved. NEVER give a deposit direct to the seller. As a final reason not to do it, handing a deposit direct to the seller is a recognised warning sign under money laundering regulations – which could in turn trigger you being reported for suspected money laundering.

I hope this clears a few things up – if you’ve got any questions about it then post a comment and I’ll try and answer it



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