Transferring existing LISA into a new LISA after age 40?

mtf

If I open just one LISA before I turn 40, is it possible to transfer the entire balance into a new LISA after I'm 40, or am I committed to stay with the same LISA provider (and same LISA type) from age 40 onwards?

My situation is as follows. My 40th birthday is in 2 weeks from now, so I have time to open one LISA (either cash or stocks). I would like to use the LISA to buy my first home in around 2 years from now, taking immediate advantage of the 25% bonus. Ideally I would use a cash LISA for this, as it's a short-term investment and I will need to know how much deposit I can afford. However, if I continue investing longer-term in the LISA after that, I would prefer a stocks and shares LISA, as the cash interest rates are below inflation, and the money will be locked away for 10 years after the last contribution (from age 50 to age 60). If I was a year younger, this would be easy - I would open two LISAs, one of each type, before my 40th birthday. Given that I can't do that, can I swap my cash LISA for a stocks and shares LISA at age 42?

The Skipton website says

This account might not be right for you if: ...You’re 40 or over and don’t already hold a Lifetime ISA.

This gives me some hope, but it doesn't explicitly say you can open one after 40 if you do already have one.

mtf

Following up on this... I think the easiest solution to my problem is to open a stocks and shares LISA and just put cash in it, until I'm in a position to make higher-risk investments. Hargreaves Lansdown says the following on their FAQ page about stocks and shares LISAs:

Can I hold cash in a Lifetime ISA?
You can choose to open your HL Lifetime ISA with cash, qualify for the government bonus and then choose investments later. There’s no charge to hold cash, and no time limit on how long you can hold cash, but you won’t receive any interest.

Given that the only Cash LISA currently available (Skipton) has a meagre interest rate of 0.5%, I wouldn't be much worse off by keeping my cash in a stocks and shares LISA instead, and it gives me a lot more flexibility for the future.

However, I'm still curious to know if it's possible to change providers after age 40. 20 years is a long time to be locked into a provider, if I'm dissatisfied with them in any way.

Ed-1

mtf wrote: »

However, I'm still curious to know if it's possible to change providers after age 40. 20 years is a long time to be locked into a provider, if I'm dissatisfied with them in any way.

Yes - you can open a LISA after you turn 40 but only if you transfer at least some money in from an existing LISA (as this shows you had a LISA open before you turned 40).

Rich2808

Is this a case of your lifetime ends at 40.