Help to buy bonus

[VividHazelOrca]

We are hopefully nearing the end of what has been an awkward house buying / selling chain. For context, small chain of three. Ftb seemingly using the h2b ISA scheme, second in the chain selling a leasehold flat and third (us) selling a freehold house and moving into a new build (which is all ready).

Completion date agreed for 12th December, but haven’t yet exchanged. Everyone in the chain agreeable, but the ftb solicitor notes ‘holds all documentation, requested h2b bonuses and submitted certificate of title in readiness for completion on the 12th’.

I just don’t understand why we haven’t exchanged? Does anyone have any thoughts / experience - especially with the h2b bonus?

Thanks,

You haven't exchanged because someone hasn't got the funds in place - most likely the FTB.

Once the lender approves the Certificate of Title they can then release the funds. Before then, if they exchange, they are locked in to complete and may be caught short!

I would imagine you are in for a whirlwind of communication tomorrow and Wednesday. They can get the funds released in 24 hours if needed, so assuming everything is fine, I'd say you could still complete on the 12th.

Thanks @WoodsBroker for replying. Google implied this too, but also suggested that the help to buy bonus is not to be used as a deposit (which seems silly to me), but rather acted like some sort of post completion bonus. Your explanation makes much more sense.

The solicitors are talking about the potential for a simultaneous exchange and completion - am not sure my nerves are up for it tbh! I do, however, feel a little more reassured that completion might happen soon, so shall continue with packing (and hope that our removal people keep us pencilled in should we need this on the 12th!)

@VividHazelOrca The bonus is a bit daft - I think the initial concern from the Gov at the time was that solicitors and others would simply increases fees to hoover it up if it could be accessed at or before completion.

Funnily enough, my solicitors 3 years ago did actually take and keep the bonus instead of paying it out, but I wasn't any worse off, so I wonder how widespread that is.

Best of luck over the next couple of days, I always say to clients there is no point getting worried as you've done all you can do - but that is easier said then done!

My solicitors won’t even discuss exchange/completion dates without my HTB isa closing statement so it’s possible that’s what’s going on

Thanks for everyone’s input. This whole process has been such a learning experience, which I hope to never repeat!

Fingers crossed we are able to keep to the dates agreed.

We had to exchange and complete on the same day when we used the help to buy isa.

@Itiswhatitis80 gosh, how stressful!

I understand why schemes like this exist, but my goodness, don’t they add another layer of complexity to an already quite broken system and in the final hour when the situation is fraught enough as it is.

Good news - we exchanged today! Hoorah!