Lifetime ISAs guide

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  • SeduLOUs
    SeduLOUs Posts: 2,171 Forumite
    1davidmprice wrote: »
    Hi all,

    Does anyone know what will happen if there is more than is needed for a house deposit in a lifetime ISA i.e. more than a 7% of deposit cost as I understand it deposits are only calculated in 5% multiples. Would you have to transfer out the exact amount and leave the rest in the account?

    Thanks

    I'm using a deposit of £40k on a £124k house. My HTB ISA balance is £4978.83 and I'm using it all expecting a bonus of £1244.71. There are no round numbers of multiples of 5% in my purchase!

    I suspect you will be able to use as little or as much of your LISA balance as you choose. It would seem odd to have a deposit that wasn't a round number, but that doesn't necessarily mean it would be an issue.
  • jerry2604
    jerry2604 Posts: 2 Newbie
    My daughter has a Help to buy ISA and will open a LISA near to the end of the tax year and transfer it across.

    However with the LISA, are you able to use it's full value. including the govt bonus at the time of property purchase and still continue to pay into it to get the retirement element bonus at retirement age. Or once used for property purchase is it automatically closed; or does it revert to a standard type ISA with no bonus?

    Thanks in advance
  • cjv
    cjv Posts: 513 Forumite
    Name Dropper First Anniversary First Post Newshound!
    Could anyone tell me if this is within the rules please?

    I currently pay in to a Nutmeg S&S LISA.

    In year 2 could I open a Cash LISA and pay into that (not paying anything into the Nutmeg LISA that year) and then in year 3 only pay into my Nutmeg LISA again. Leaving both accounts open and alternating yearly which one I pay into?

    I would probably only consider this if a better Cash LISA rate came on the market, but It will be helpful to know for the future as I could essentially hold 50/50 of my contributions in Cash/S&S :)

    Thanks
  • Ed-1
    Ed-1 Posts: 3,888 Forumite
    First Anniversary Name Dropper First Post
    cjv wrote: »
    Could anyone tell me if this is within the rules please?

    I currently pay in to a Nutmeg S&S LISA.

    In year 2 could I open a Cash LISA and pay into that (not paying anything into the Nutmeg LISA that year) and then in year 3 only pay into my Nutmeg LISA again. Leaving both accounts open and alternating yearly which one I pay into?

    I would probably only consider this if a better Cash LISA rate came on the market, but It will be helpful to know for the future as I could essentially hold 50/50 of my contributions in Cash/S&S :)

    Thanks

    Yes fine...
  • cjv
    cjv Posts: 513 Forumite
    Name Dropper First Anniversary First Post Newshound!
    Ed-1 wrote: »
    Yes fine...

    Cool thanks :D
  • El_Bubba
    El_Bubba Posts: 1 Newbie
    edited 19 September 2017 at 10:53AM
    Hello,

    Please can anyone answer the below questions. Sorry about the rush. I need to be more organised.
    Sorry.


    I am turning 40 very soon and not a first time buyer. I cannot really invest in any shares in the next couple of years as I am saving up to buy a house (again). I cannot really take any risks with the savings I have as a result.


    If I open a cash LISA with Skipton BS, can I later on transfer this to a shares LISA such as AJ Bell a few years later?



    Also, when I have a shares LISA, am I OK to sell shares as long as I don't withdraw the money?

    Sorry if I am a bit thick. :) Thanks in advance for your advice.
  • funguy
    funguy Posts: 601 Forumite
    First Post First Anniversary
    Hi All,

    If considering a LISA from a pension point of view, should i look to put the money into the Nutmeg S+S or Skipton cash LISA?

    I already have a pension through work that i cannot contribute anymore to.
    Thank you in advance :)
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    edited 20 September 2017 at 2:33PM
    @ElBubba as you will not qualify as a first time buyer why not skip the Cash LISA and just open a S&S LISA for saving for 60+? You wouldn't want to use a LISA to save up for another house as you would loose the bonus and suffer a small withdrawal penalty.

    Nutmeg will open a LISA with 100 pounds which will build you a diversified investment portfolio. You just need to tell them your risk level and they will choose investments that suit your volatility tolerance. The best way to get experience in investing is to start with a small amount.

    On low adhoc or regular amounts Nutmeg should be cheaper than AJ Bell as there are no trading costs. It's also simpler as their fees are automatically deducted from the invested units which also means whatever you have in the account is totally invested.

    AJ Bell will be best for large lump sum amounts or after a few years when the LISA is large. On AJ Bell (or Hargreaves Lansdown) you have to choose your own funds such as Vanguard Life Strategy 60 and maintain a small cash balance to pay platform fees.

    Finally having had accounts with both Nutmeg and AJ Bell the customer service at Nutmeg is so much better. Netmeg always reply to secure messages within 24 hours but AJ Bell take lots of chasing for even simple things.

    P.s. yes you can hold cash and buy and sell in a LISA wrapper (on AJ Bell and HL) without withdrawing but Nutmeg require you to be continually invested in a portfolio (which you can switch).
  • Alexland
    Alexland Posts: 9,653 Forumite
    First Anniversary Photogenic Name Dropper First Post
    @funguy a S&S LISA would beat a Cash LISA in most circumstances for 20+ years of accumulation. However an employer pension is usually better than both.
  • soniashah
    soniashah Posts: 4 Newbie
    Hi All

    If I have a buy to let mortgage, am I still considered a first time buyer? Just wondering if I'd qualify to get a LISA.

    Thanks in advance :)
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