Lifetime ISAs guide

Arthurian

eskbanker wrote: »

As the previous poster has correctly pointed out, the Forester LISA isn't a cash one (which is the context of the comment about not holding breath) - a quick look at the online key facts and brochure reveals info about annual charges of no less than 1.25% but nothing about "1.75% annual interest rate bonus", where did you see this?

I don't know how Chris Dean found out, but I couldn't see it written anywhere either, so I phoned them and was told it's the same rate as their NISA, which is currently 1.75%, so that's what it'll be for the LISA this year.

LuxLuke

I've just given Skipton a call to ask about their clause on stopping Help to Buy transfers, and the lady I spoke assured me that they would only ever use that clause under extreme circumstances. When I asked what were considered extreme circumstances, she said if you'd done something wrong like open two lifetime ISAs or invested over your £4000 limit for the year somehow. It would be nice to have that in writing on their site, but it doesn't sound like it's actually going to be a problem.

I'm going to risk it and try and get an extra £170 in interest out of my H2B before transferring, wish me luck!

Ed-1

LuxLuke wrote: »

I've just given Skipton a call to ask about their clause on stopping Help to Buy transfers, and the lady I spoke assured me that they would only ever use that clause under extreme circumstances. When I asked what were considered extreme circumstances, she said if you'd done something wrong like open two lifetime ISAs or invested over your £4000 limit for the year somehow. It would be nice to have that in writing on their site, but it doesn't sound like it's actually going to be a problem.

I'm going to risk it and try and get an extra £170 in interest out of my H2B before transferring, wish me luck!

You could always transfer your LISA to another LISA that allows H2B ISA transfers if Skipton ever did pull the option.

LuxLuke

Ed-1 wrote: »

You could always transfer your LISA to another LISA that allows H2B ISA transfers if Skipton ever did pull the option.

If anymore become available that is!

ryan121

I'm planning to buy a house with my brother so was thinking we should both get a LISA. He is in the army though and I'm wondering about the rule where the house has to be your main residence as he mainly lives in army accommodation.

Would that likely be an issue?

Found the answer on a government website:

"If you are a Crown servant, such as a member of the armed forces serving overseas (or are their spouse or civil partner) and you intend to use the property as your main residence, then you will be eligible for the scheme even if you are unable to live in it as your main home when you first purchase it. When you first purchase your property, you will be able to rent it out until you are able to move in."

Thought it would be strange for a government scheme like this to penalise members of the army for something they have no control over.

Killing_Position

I have a help to buy ISA and a Nutmeg lifetime ISA. If I deposit £200 per month into my help to buy ISA and make ten deposits this tax year, that £2000 will gain some interest, let's call it £20. If I transfer the entire balance of my help to buy ISA into my lifetime ISA in March, will this year's contributions towards my lifetime ISA allowance be £2000 (the amount I deposited into my help to buy ISA this year) or £2020 (the amount I deposited plus interest)?

Ed-1

killing_position wrote: »

i have a help to buy isa and a nutmeg lifetime isa. If i deposit £200 per month into my help to buy isa and make ten deposits this tax year, that £2000 will gain some interest, let's call it £20. If i transfer the entire balance of my help to buy isa into my lifetime isa in march, will this year's contributions towards my lifetime isa allowance be £2000 (the amount i deposited into my help to buy isa this year) or £2020 (the amount i deposited plus interest)?

£2,020........

[Deleted User]

Yea be careful on the forms... I'm not sure how friendly Skipton will be...

They ask what was deposited this tax year... so for most, at this point, that'll be £400 (May & June... if you deposit on 1st of month).... but my figure was something like £412 because of the interest

There is a term that says something along the lines of the transfer will be blocked if it exceeds your self declared figure.

So in theory if you put £400, and it's £412, they'd reject it... so make sure you include all interest credited in this tax year.

ryan121 wrote: »

I'm planning to buy a house with my brother so was thinking we should both get a LISA. He is in the army though and I'm wondering about the rule where the house has to be your main residence as he mainly lives in army accommodation.

Would that likely be an issue?

Found the answer on a government website:

"If you are a Crown servant, such as a member of the armed forces serving overseas (or are their spouse or civil partner) and you intend to use the property as your main residence, then you will be eligible for the scheme even if you are unable to live in it as your main home when you first purchase it. When you first purchase your property, you will be able to rent it out until you are able to move in."

Thought it would be strange for a government scheme like this to penalise members of the army for something they have no control over.

I've looked at quite a lot of mortgage lending criteria - Armed Forces & Crown Employees are normally exempt from residency rules for that reason.

As long as you live in the house you should be fine... I'd declare it so they/you don't have any surprises along the line, but I imagine it'll go through just like any other app

N.B - technically speaking LISA bonus is a declaration made via your solicitor.... it's lender residency requirements that are more likely to be a problem (but as above, I can see pretty much all of them saying it's fine)

Killing_Position

Great, thanks for your replies. So is it only the full balance in my help to buy ISA on 5th April 2017 that can be transferred to my lifetime ISA without affecting my lifetime ISA allowance or would any interest accrued by that date (but not paid until the anniversary of me opening the account) also be included?

Ed-1

Killing_Position wrote: »

Great, thanks for your replies. So is it only the full balance in my help to buy ISA on 5th April 2017 that can be transferred to my lifetime ISA without affecting my lifetime ISA allowance or would any interest accrued by that date (but not paid until the anniversary of me opening the account) also be included?

Any interest accrued as at 5th April 2017 can also be transferred without affecting the LISA allowance.