Lifetime ISAs guide

pjcox2005

eskbanker wrote: »

I can't see how being related to the seller would make a difference, provided the sale is formally conducted in the usual way through an accredited conveyancer, with a mortgage involved, etc.

Great, that's my understanding as well but always unsure if I'm not spotting something. Solicitor will obviously advise when the time comes but trying to check beforehand.

Alexland

oz0707 wrote: »

I opened the LISA on June 20th 2016, I know it has to be open for at least 12 months but when would you suggest to start looking at properties and applying for a mortgage?

There is no harm looking but I don't think you would be in a position to put an offer forward until at least mid April given conveyancing usually takes 2-3 months. Maybe later in Scotland.

Alex

Alexland

oz0707 wrote: »

Will providers accept transfers of LISA's in subsequent years? If I was to choose nutmeg now, could I switch to H&L or vice versa?

Yes there is no reason you would not be able to change LISA providers in future provided that there are providers willing to take new business transfers in. Your existing provider would not be allowed to stop you transfering out but might apply an administrative exit fee. Nutmeg do not currently charge an exit fee but HL do. I have raised the issue of exit fees to the FCA as potentially damaging to competition when they asked for public input into their proposed platform study.

Alex

Alexland

oz0707 wrote: »

How do the other providers stack up with purchase fees can't remember seeing them? I'm just struggling to choose between platforms doesn't seem a lot in it. Nutmeg appear to allow transfers out but not in (yet). Although I do prefer the idea of holding a recognised fun (i.e. vanguard VLS).

I believe that AJ Bell are the only platform to charge fund trading fees but they have the lowest platform custody charge so it can work out cheaper. On HL fund trading is included but you would pay to trade Shares, ETFs or ITs. Nutmeg includes ETF trading which is all they need for their portfolios.

Alex

Hipperty

Punder2 wrote: »

I have the funds to top up the £4k LISA limit for this tax year from lower interest paying accounts than my HTB ISA, so I would like to transfer over just the HTB contributions from the previous tax year (~£4k) to maximise the "free" bonus, and top up with £4k from other accounts for this years limit. I would then keep the HTB ISA open as a savings account with the contributions thus far from this year & continue to contribute £200 pm there. I realise that I would only get the 25% bonus from the LISA (not both) when buying a house - I just want to take advantage of the 3.5% interest on my Halifax HTB as I can max out the LISA regardless.

Has anyone tried a partial transfer of Halifax HTB ISA to the Skipton LISA, or can confirm whether the above approach would work?

Yes, I have done a partial transfer in order to keep the Halifax H2B open. You have to complete a form from Skipton website to do the transfer and it gives you the option for a partial transfer.

DeanMB

I opened a Halifax HTB ISA in Dec 2015 and have contributed £6200 so far, gaining £262.12 interest along the way.

I also opened a LISA and deposited £1 to start the lead-in period with a view to transferring my HTB ISA across in March.

When I come to transfer, what will happen to the bonus I am owed on my HTB contributions (£1550 so far)? Obviously I'd rather not lose £1550 if I could help it.

eskbanker

DeanMB wrote: »

I opened a Halifax HTB ISA in Dec 2015 and have contributed £6200 so far, gaining £262.12 interest along the way.

I also opened a LISA and deposited £1 to start the lead-in period with a view to transferring my HTB ISA across in March.

When I come to transfer, what will happen to the bonus I am owed on my HTB contributions (£1550 so far)? Obviously I'd rather not lose £1550 if I could help it.

Unlike HTB ISA bonuses, which are only paid when buying the first property, LISA bonuses are paid at the start of the 2018/19 tax year (for everything in the LISA by 5 April 2018) and monthly thereafter for subsequent contributions. So, yes, if you transfer £6200 from a HTB ISA to a LISA before 5 April 2018, you'll receive a £1550 bonus in late April/early May 2018.

AlphaSatsuma

I'm in an bit of a strange (stupid) situation, hopefully someone knows some of the technicalities to help me.

I have had a H2B since 2015 with Halifax and have maxed that out every month since opening.
When LISAs came along I read about the year wait thing before being able to use, so I opened a Nutmeg LISA with the minimum £100 thinking I could transfer my H2B in in April this year and get the bonus on it all in their S&S LISA. However I've just noticed now that nutmeg for some reason are not allowing transfers from H2B.
So, I'm now looking to open a Skipton cash LISA so that I can transfer H2B in before April and get the extra bonus. However I don't know if I can transfer my Nutmeg LISA first to keep my original opening date and allow me to use sooner, if required? Or do I need to close the nutmeg one before the anniversary so I don't get charged and just open a new LISA and accept it? I assume you must be able to transfer LISAs to keep the flexibility of changing between cash and S&S?

Any ideas? Thanks in advance

Ed-1

AlphaSatsuma wrote: »

I'm in an bit of a strange (stupid) situation, hopefully someone knows some of the technicalities to help me.

I have had a H2B since 2015 with Halifax and have maxed that out every month since opening.
When LISAs came along I read about the year wait thing before being able to use, so I opened a Nutmeg LISA with the minimum £100 thinking I could transfer my H2B in in April this year and get the bonus on it all in their S&S LISA. However I've just noticed now that nutmeg for some reason are not allowing transfers from H2B.
So, I'm now looking to open a Skipton cash LISA so that I can transfer H2B in before April and get the extra bonus. However I don't know if I can transfer my Nutmeg LISA first to keep my original opening date and allow me to use sooner, if required? Or do I need to close the nutmeg one before the anniversary so I don't get charged and just open a new LISA and accept it? I assume you must be able to transfer LISAs to keep the flexibility of changing between cash and S&S?

Any ideas? Thanks in advance

You can only pay into one Lifetime ISA per tax year. You could either close the Nutmeg LISA (there's no charge for 2017/18 only) and then pay into a Skipton LISA or if you want to keep the original opening date, you can transfer the Nutmeg LISA into a Skipton LISA.

You can't pay into both Nutmeg and Skipton LISAs in the same tax year.

DanielleJH

Hoping someone can help clarify the LISA for me. My husband and I are both first time buyers who have held LISAs since September 2016. Am I definitely right in thinking we're entitled to £4000 each per tax year?

We are hoping to buy in January 2019 so will have held the accounts over two tax years. Does this mean we are able to save a maximum of £16000 between us with a maximum bonus of £4000 before April next year? We only have a few £100 each in them so far but are due bonuses in work before the end of April so hoping to get as close to £4000 each as possible.