Lifetime ISAs guide

Alexland

slow-but-patient-JC wrote: »

Hypothetically too, for long term savers in a cash LISA rather than a pension, eventually (with max cash contributions each year, presuming no other product has come along to partially transfer to), would this not start exceeding the FSCS guarantee (at about 17 years)? I can't imagine ever saving this but wondered why it hadn't come up.

The cash LISA is aimed at people who expect to be buying a property in less than circa 5 years. For anyone else they are better served with a s&s LISA and making long term investments for 20+ years until the age of 60. They could always switch back to a cash LISA closer to the time of making their qualifying property purchase.

The FSCS guarantee on s&s is even lower at £50k so an investor might start hitting the limit in under 10 years depending on their market returns.

Alex

RedRuby_2

I'm really annoyed with the rule stating that you have to have the LISA for a year before you can use it and I don't think it should be applied to those who are transferring in from a Help to Buy ISA.

Those who opened a Help to Buy ISA should have the time they've had it for taken into account when they transfer in to a LISA. So they can benefit from using this years allowance and topping up to the £4000 threshold.

Also when the LISAs were first launched there weren't many banks etc that provided them and Skipton are the first to offer a cash LISA and that was only just recently. So I just feel that the strict deadlines and rules should be amended and relaxed for those transferring in.

eskbanker

RedRuby wrote: »

Skipton are the first to offer a cash LISA and that was only just recently.

They launched it in early June 2017, i.e. 8.5 months ago!

RedRuby wrote: »

So I just feel that the strict deadlines and rules should be amended and relaxed for those transferring in.

I'm sure some would agree with you but the rules have been clear from day one and are hardly likely to change any time soon - sounds like it's too late now but you should have opened a LISA (either S&S last April or cash in June) with a token amount just to start the clock ticking, which was the standard advice offered on here at the time....

bo_rai_cho

I have a question, I have had a lifetime isa with £1 in it since last year and transferred my htb isa to this last month, we've purchased a house for completion in May but my solicitor tells me they only have a login to import htb isas for completion and not lifetime isas for completion.

Is this some sort of government portal? Im guessing no one has successfully used a Lisa yet as it will only have been a year in April, is anyone planning to use a LIsa in April or May and had it for over a year? If so, does your solicitor have the facilities to transfer it?

DDD5

Hi
I am 40 in 2 weeks. Unfortunately my business went under & I had to sell my house 5 years ago to avoid going bankrupt. I have been renting since. I have nearly paid off all the debts (another year or so) & then I would like to buy again.
Would I qualify for the LISA as a first time buyer or not (if so I'll take one out now before I can't)?
Thanks

Ed-1

DDD5 wrote: »

Hi
I am 40 in 2 weeks. Unfortunately my business went under & I had to sell my house 5 years ago to avoid going bankrupt. I have been renting since. I have nearly paid off all the debts (another year or so) & then I would like to buy again.
Would I qualify for the LISA as a first time buyer or not (if so I'll take one out now before I can't)?
Thanks

You can have a LISA but you can't use it for a first-time house purchase. You can withdraw without charge from age 60.

Alexland

bo_rai_cho wrote: »

I have a question, I have had a lifetime isa with £1 in it since last year and transferred my htb isa to this last month, we've purchased a house for completion in May but my solicitor tells me they only have a login to import htb isas for completion and not lifetime isas for completion.

Is this some sort of government portal? Im guessing no one has successfully used a Lisa yet as it will only have been a year in April, is anyone planning to use a LIsa in April or May and had it for over a year? If so, does your solicitor have the facilities to transfer it?

With a LISA the bonus is added into the account aligned to the contribution date so your solicitor does not need to claim a final bonus from the government. Your solicitor should be withdrawing the money by making contact with your LISA provider and providing the required declarations.

The fact they don't know this makes me worry they may not be an eligible conveyancer which would be a big problem.

Alex

badogblue

Hope someone can clear this up for me. Planning on buying a house in next 9-15 months. Say I open a LISA now and deposit £4000, then in April 2019 I deposit another £4000 lump sum. I then buy a house in May 2019 would I get a bonus of £2000 (25% of the 8k) or as the bonus is paid monthly is it cumulative like interest? Alternatively I could open a HTB isa, though in the same 13 months I would only earn 25% of £3800 = £950?

Is this correct. Thanks.

Alexland

You could deposit £4k now for a £1k bonus in April/May 18, £4k anytime next tax year (from 6th April 18) for a £1k bonus around a month or two later then £4k on 6th April 19 for a £1k bonus in April/May 19.

Lisa needs to be open 12 months from initial contribution before it can be used for qualifying purchase without penalty.

Alex

Gareth1980s

Hi there,


I've read through a lot of the forum I don't think this has been answered recently. I'm just looking for some quick advice so I'll keep it brief.


I have a HTB ISA, which I've paid into fully since launch.


I opened a stocks and shares LISA with £1 in April 2017 as per the MSE advice, which is currently being transferred over to Skipton to open my cash LISA. As I understand it, this means the LISA clock will still be registered as having started ticking in April 2017, so I will be able to use the money from the anniversary date in April 2018, is that correct? (Albeit with the caveat of the bonus not being paid until May 2018, which I'm aware of - I won't need the money before summer so that's fine).


My plan is to follow the original MSE advice of transferring the £1 over, then transferring the HTB over ASAP (I realize I've left this a little late!), and then top up from other savings to maximise the LISA bonus for the 2017/18 financial year.


I just want to double check this is still accurate advice - the last thing I want to do is transfer my HTB ISA over and then find that the LISA clock started Feb 2018 and that I can't access the account until Feb 2019!


Thanks for reading, and thanks in advance for anyone taking the time to reply.