Lifetime ISAs guide

Ed-1

Sussex_Dave wrote: »

My partner turns 40 this year, so will be ineligible to open a lifetime isa. We both have help to buy isa's at the moment. I plan on transferring my funds to a lifetime isa, but I am unsure what happens when we come to buy a house. Can we use her help to buy isa funds alongside my lifetime isa funds and what maximum purchased limit will be applied? I can't find anything on this anywhere. Thanks

Each account can be used within its individual terms and conditions, except one person can't use both a H2B ISA and a Lifetime ISA bonus to buy a house.

So if you were taking a mortgage jointly, the lower H2B ISA limit would apply outside London for your partner to be eligible to claim that bonus.

Geldsparerin

I turn 40 in August 2017 so would it be worthwhile opening an account so I have the option to save in it?
I am a teacher so would it be better to pay additional pension contributions to the my teachers' pension or in the Prudential AVC?

Kim_13

Geldsparerin wrote: »

I turn 40 in August 2017 so would it be worthwhile opening an account so I have the option to save in it?
I am a teacher so would it be better to pay additional pension contributions to the my teachers' pension or in the Prudential AVC?

I would open the account assuming they are up and running by then, paying in any first payment that the terms require. Then it's yours to use or not use as you wish.

If you do the sums and realise there's more benefit to increasing your contribution to another pension, then do that. If not, and you haven't opened the account while under 40, you'll have lost out.

(Assuming they do actually launch on time of course; I read something the other day that they'd be delayed if providers didn't get certain information by the end of July, or perhaps cancelled altogether due to the change in chancellor.)

Sussex_Dave

Ed-1 wrote: »

Each account can be used within its individual terms and conditions, except one person can't use both a H2B ISA and a Lifetime ISA bonus to buy a house.

So if you were taking a mortgage jointly, the lower H2B ISA limit would apply outside London for your partner to be eligible to claim that bonus.

I had a response from the treasury and you are spot on. The lower of the 2 limits applies (can use mine and partners together) so we either limit ourselves to a 250k purchase or sacrifice the help to buy ISA. Thanks for the responses...

shengabus

Q1: If I invest in a LISA, and and then “activate” the bonus for my first house purchase (say after a few years). Would I then be able to continue to put money into the LISA for a retirement provision?
[EDIT: yes]

Q2: Suppose I put 4k into a LISA but choose to invest in stocks/shares, in what form would the bonus arrive? (Could one accumulate into the invested funds, for instance?)

Q3: I want to ask again whether the 25% of the H2B bonus is added to the LISA.
The government document "dotted line" seems to say yes, but I've seen conflicting answers.

eliseardener

‘However the bonus for 2017/18 is unlikely to be paid for a few months after April 2018, so those wanting to use their Lifetime Isa savings plus bonus for buying their first home in April, May or possibly June 2018 may be disappointed’

Is this something which occured with the h2b ISA? I'm not sure if this is fact or opinion.

Sorry I can't post the link to the article but it was from This is Money, an article from September 16th. The quote is from a financial planner.

Parsnip808

This product is no-brainer. Excellent development from the Treasury.

dfbefore30

Hi
I know it's still early, but does anyone know which banks will be starting the lifetime cash isa in April? I can only find providers for the stocks and shares isa .
Thanks

dhuttu

Hi,
Due to my circumstances I am living & renting at London. Having done this for over 2 years, I wish to buy a property in London for me to live in. Today I am not in a position to put down any deposit without serious savings + help. LISA & help-to-buy ISA sound like great opportunity for sound investment for future down-payment on a property. I am over 40 years old. This is not my first step on the property ladder.
Is there a LISA equivalent for people over 40 years of age? Also can I use the help to buy ISA to save up to buy residential property if it is not going to be my first ? If no to either question, what are my alternative options?
Look forward to hearing from you,
Dhuttu

veryintrigued

dhuttu wrote: »

Hi,
Due to my circumstances I am living & renting at London. Having done this for over 2 years, I wish to buy a property in London for me to live in. Today I am not in a position to put down any deposit without serious savings + help. LISA & help-to-buy ISA sound like great opportunity for sound investment for future down-payment on a property. I am over 40 years old. This is not my first step on the property ladder.
Is there a LISA equivalent for people over 40 years of age? Also can I use the help to buy ISA to save up to buy residential property if it is not going to be my first ? If no to either question, what are my alternative options?
Look forward to hearing from you,
Dhuttu

Am afraid you wont be able to get a LISA if you're over 40 or help to buy (if you've bought before).

Honest options for house ownership? Move out of London!

Good luck Dhuttu