HTB ISA > LISA > House (hopefully!)

Hi

I'm planning to buy my first property around May/June 2018. I'm planning to fund the deposit as shown below - does anyone have any thoughts as to whether I've missed somthing?

Current situation:
HTB ISA with balance of £6,250 (ish) - opened in Dec-15 with £1,200 and £200 contributed each month

LISA opened in April 2017 - current balance of £1

Other savings held in a collection of accounts outside of ISA wrappers

Property will be in the region of £250k. The places I'm interested in are £230 - £260 but I expect by the time I buy, and to get what I want, I'll pay over £250k. As I'm not buying in London this rules out the HTB ISA bonus.

Plan:
  • In early 2018, transfer the HTB ISA into my LISA
  • "Top up" the LISA to ensure I've used the full £4k allowance for 2017/8
  • After 6 April 2018 - add another £4k to the LISA.
This should give me a LISA balance of around £12k, or £15k after the bonuses have all been paid. If I do the transfers at the right time, the bonuses should all be paid by the end of May 2018 I believe.

I can then use my non-ISA savings to make up the balance of the deposit.

Can anyone see a flaw in this cunning plan?

Comments

  • Smart thinking by utilising the LISA which has a higher property value threshold outside of London (Like you I found the HTB threshold challenging when looking to live either just inside or outside the M25)

    I cannot see any issues from my knowledge to your plan as you are certain you want to buy next year, so taking a LISA out does make sense.
    Save £12k in 2020 = £4,074.62/£15,000 (27.2%) #89
    Save £12k in 2019 = £13,580.52/£15,000 (90.5%) #92
    Save £12k in 2018 = £17,189.12/£15,000 (115%) #36
  • TheBanker
    TheBanker Posts: 1,613
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    Smart thinking by utilising the LISA which has a higher property value threshold outside of London (Like you I found the HTB threshold challenging when looking to live either just inside or outside the M25)

    Thanks - agree about the £250k cap on the HTB ISA. If you want to live in the South East, but not London, it's pretty much impossible unless you want a very small flat. I'm surprised they didn't make the £450k cap cover the whole South East, given we all suffer from London driven house price inflation.

    Thanks for commenting on my plans :)
  • Alexland
    Alexland Posts: 9,639
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    Who is your LISA provider, are they accepting HTB transfers (Nutmeg are not), if so get your transfer paperwork in pronto to avoid disapointment.
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