What exactly can you pay for with a LISA

kakalq

Hi,

I opened a LISA account immediately when it was available from Skipton and will be looking for a house this year, but I am wondering what exactly can you use the money for from the LISA. I understand that I can use it for the exchange deposit, but is it also possible to use this money to cover other costs i.e. stamp duty and/or legal fees?

Thanks.

Herbalus

Before you purchase the house you will need to pass money to your solicitor for all of the things you mentioned. You can decide to whichever !!!8220;pot!!!8221; it belongs at that point.

eskbanker

The scheme rules are quite clear on this, in that clause 9B.44 mandates that the buyer must sign a "declaration that the withdrawal will only be used to defray the purchase price of the property" and under 9B.45 the conveyancer has to make a similar formal declaration.

Having said that, some conveyancers may be willing to turn a blind eye to this and allow the money to contribute to other costs, but obviously it'll be advisable to discuss and agree in advance if they're able and willing to bend/break the rules in this way rather than being caught out when it's too late!

thenewguy

You're not supposed to pay fees with it, but I wouldn't be surprised if a lot of conveyancers end up just arranging the payments in such a way that you basically do. It!!!8217;s what a lot of them end up doing for H2B ISAs (although that's often a necessity because the bonus can end up being money left over if your exchange deposit + mortgage = 100%).