Transferring H2B ISA to Lifetime

Have got both the H2B ISA and the Lifetime ISA. Posted the application to Skipton yesterday to transfer previous year"s subscriptions to Lifetime Isa and keeping H2B isa open. Cannot use Lifetime ISA until 6 June 2018. If I found a house I liked am I likely to complete before 6 June 2018? If I needed to could I stop the transfer going ahead?

Sorry if these are silly questions. Just panicking now I have not done the right thing.

Comments

  • Alexland
    Alexland Posts: 9,652
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    If you don't want to do the transfer contact Skipton immediately. Once the transfer is complete there is no going back. The LISA withdrawal penalty applies from 6th April. It usually takes at least a few months from finding a property to the exchange of contracts and completion.
  • ACCA
    ACCA Posts: 72
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    Completion is scheduled to mid-end June 2018. I opened the LISA on the 7th June 2017. Obviously, the bonus is better if i transfer my HTB ISA to LISA, however not sure about the timing.

    Could anyone advise what's the process of application to LISA bonus? If say the completion happens of the 20th of June, when do I (or the solicitors) will need to submit the application to get the saved funds and the bonus?

    Thanks in advance.
  • Alexland
    Alexland Posts: 9,652
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    The LISA bonus will be automatically added into your account by your provider. Your approved solicitor will need to contact the provider directly with required declarations to draw the money. You provider will need to do some checks before releasing the money.
  • ACCA
    ACCA Posts: 72
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    Called Skipton today, please see below the summary, maybe it's going to help someone.

    - it's solicitors who need to apply for the funds and bonus
    - 30 working days are required from the day when the application is submitted for funds to be released
    - funds can't be held in solicitor's account for longer than 90 days
    - funds can be used exclusively for deposit of your new home
    - if say, your solicitors applied for the funds and bonus after 12 months since account opening, but the completion happens earlier than 30 days since application is submitted - then it's a higher inherent risk that you may loose the benefit; this is my case and i decided not to transfer my HTB ISA.
    - calling Skipton is useful, however web-chat is even better

    hope this is helpful for anyone
  • Alexland
    Alexland Posts: 9,652
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    Thanks the waiting 30 days for the money to be released is news to me however I have been suggesting people leave enough time to resolve admin and errors.
  • uih039
    uih039 Posts: 106
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    ACCA wrote: »
    Called Skipton today, please see below the summary, maybe it's going to help someone.

    - it's solicitors who need to apply for the funds and bonus
    - 30 working days are required from the day when the application is submitted for funds to be released
    - funds can't be held in solicitor's account for longer than 90 days
    - funds can be used exclusively for deposit of your new home
    - if say, your solicitors applied for the funds and bonus after 12 months since account opening, but the completion happens earlier than 30 days since application is submitted - then it's a higher inherent risk that you may loose the benefit; this is my case and i decided not to transfer my HTB ISA.
    - calling Skipton is useful, however web-chat is even better

    hope this is helpful for anyone

    May I ask for clarification please as I’m in a similar position? If I transfer H2B to Skipton LISA opened on 11 June 2017 and complete on my house purchase on (say) 1 June 2018, do I lose all of the LISA and H2B bonus?

    Thanks.

    Andrew.
  • ACCA
    ACCA Posts: 72
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    uih039 wrote: »
    May I ask for clarification please as I’m in a similar position? If I transfer H2B to Skipton LISA opened on 11 June 2017 and complete on my house purchase on (say) 1 June 2018, do I lose all of the LISA and H2B bonus?

    Thanks.

    Andrew.

    Andrew, from what i found out so far (from Skipton, my solicitors and official resources) - the answer is yes, you will most likely lose. It also depends what you mean by "house purchase on 1 June". What you will need to bear in mind is that you can submit the application to claim the funds and bonus after 12 months laps, which is 11 June 2018, plus up to 30 working days, say 12 July 2018. If you complete the deal and pay the money to the developer before this date - you won't be able to claim and use the funds.

    Nothing stops you from double checking. I would start with Skipton and then solicitors.
  • Alexland
    Alexland Posts: 9,652
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    In this situation an early withdrawal penalty would apply which would be slightly greater than the bonus.
  • ACCA
    ACCA Posts: 72
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    Alexland wrote: »
    In this situation an early withdrawal penalty would apply which would be slightly greater than the bonus.

    That's verified and confirmed with Skipton. So economically-wise you're better off keeping your HTB ISA as it is.
  • uih039
    uih039 Posts: 106
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    ACCA wrote: »
    That's verified and confirmed with Skipton. So economically-wise you're better off keeping your HTB ISA as it is.

    Many thanks to all who replied. I think I will play safe and stick with the HTB.
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