Lifetime ISA Solicitor Fees

obeygiant1987

Hi

I currently have a Help to Buy ISA. I don't have a lot in there as I only opened it earlier this year but I'm considering transferring the balance to a Lifetime ISA, possibly opening one now and transferring just before the end of the tax year. My only concern is there is a limit of £50+VAT solicitor fees for handling the Help to Buy bonus and I can't see any mention of a limit on solicitor fees for handling a Lifetime ISA balance when used towards a house, only mention that a solicitor or conveyor is required to do so. Is the fee likely to be more for handling a Lifetime ISA since there is no limit?

Thanks

Anthony

Alexland

Hi - welcome to the forum.

I would be surprised if a reputable solicitor would charge more than £50 plus VAT to handle the additional funding source. It might take a tiny bit more of their time if you have a S&S LISA due to the valuation uncertainty caused by the volatility of the investments but otherwise it should be fine and I doubt they would quote differently.

However people don't seem to use reputable solicitors anymore. The market has for many years been moving to estate agent referrals with 40% commission going to the estate agent.

The estate agents suggest it would be simpler to keep it in-house (even though they will outsource the work) with the underlying threat that the property will be sold to another buyer if you use your own choice of solicitor.

So while the price remains high the underlying delivery cost is so low you end up getting under qualified help desk style conveyoncers working off basic process documents being carelessly overseen by someone qualified on a 20:1 staff ratio working on hundreds of concurrent transactions. I guess the management of these cheap and cheerful outfits might see it as an upsell opportunity if the estate agents have taken the majority of the profit already.

It's a shame as reputable solicitors don't cost any extra if you go direct and cut out the agent commission.

Even if you get a reputable solicitor it's a real let down when you are told the other party is using one of these low skill help desk operations as it slows things down and you get brainless answers to reasonable enquires.

Ps if you are looking to transfer don't leave it too late in the tax year as delays often occur.

Alex