Lifetime ISAs guide

eskbanker

Simon81 wrote: »

I've opened two LISA's last year (one one my name, the other on my spouse's name who doesn't have a regular income) with the intention of saving up for a deposit for our first home in the near future.
As my spouse doesn't have a regular income however, it is very likely that I will have to put the property deed and mortgage in my name only (my understanding, please advise if there is another way around this) and I am not sure that with this, we can even put my spouse's LISA towards the purchase of the house. Does anyone have encountered a similar situation or might know anymore about this?

Your spouse needs to be on the deeds to use the LISA (without penalty) and that's likely to mean that they'll need to be on the mortgage too. Not having a regular income shouldn't hinder being on the mortgage or deeds though - there will be millions of property-owning couples with joint mortgages (and ownership) with only one 'breadwinner'....

eskbanker

awhite6889 wrote: »

Last tax year I maxed out the LISA allowance of 4000 with Skipton. This year I opened a Stocks and Shares LISA with Money box. I know you are only allowed to pay into one LISA per tax year. Will I have problems when buying a first house if I need to get the money from two different LISA's?

It shouldn't be an issue, no, although nobody will have done it yet! You could always transfer one to the other closer to the time if you felt it was a risk....

awhite6889

eskbanker wrote: »

It shouldn't be an issue, no, although nobody will have done it yet! You could always transfer one to the other closer to the time if you felt it was a risk....

When transferring one to the other, do you use up your yearly allowance? When I was speaking to Skipton web chat they said it did, but imo this seems a bit illogical.

eskbanker

awhite6889 wrote: »

When transferring one to the other, do you use up your yearly allowance? When I was speaking to Skipton web chat they said it did, but imo this seems a bit illogical.

No, transfers between LISAs don't use up the annual LISA allowance, the Skipton adviser was probably confused by the fact that transfers into LISAs from other types of ISA do count towards that.

See the section headed 'Transfers' at https://www.gov.uk/guidance/lifetime-isas-for-isa-managers (with my bolding):

Lifetime ISAs can be transferred between Lifetime ISA managers without incurring a withdrawal charge. There is no limit on the amount transferred. The normal ISA transfer rule applies and any current year payments must be transferred in full to the new Lifetime ISA manager.

Alexland

HL just added the initial £1k cash bonus into my LISA but it's not been added to my wife's account yet. Just placed my investment order.

TheBanker

Alexland wrote: »

HL just added the initial £1k cash bonus into my LISA but it's not been added to my wife's account yet. Just placed my investment order.

They've paid my bonus today too. Most efficient!

TrustyOven

Mine too. HL added approx 1.5k

Keeping mine in cash as I want to use it as house deposit, but wondered if I should buy VLS20 or something instead of keeping as cash. Hmm

playz28

Me too, HL have just paid my LISA bonus in. £1.5k. Interestingly I paid another £4k in on the 6th April, guess I will have to wait till 25 May for the extra £1k bonus.

Alexland

TrustyOven wrote: »

Keeping mine in cash as I want to use it as house deposit, but wondered if I should buy VLS20 or something instead of keeping as cash. Hmm

Going too heavy into bonds carries its own risks.

My wife's bonus still hasn't been added so I just sent them a message. It might be because it was transferring across the tax year end boundary that it missed this claim batch.. I just checked her old Nutmeg login and it's not there either.

Alex

Zorillo

No bonus from AJ Bell yet.