Lifetime ISA - 12 months

SSheldon

I currently have a Lifetime ISA which will be 12 months old on 9th March. We've started viewing properties as we're aware this may take some time to find the right one and deposit isn't payable until exchange (we have the deposit the account just isn't old enough yet). The Lifetime ISA advice on this website advises that if your account isn't 12 months old but you have another one which is, you can transfer it out into the older one. My LISA will be 12 months old a few weeks before my partners - could he transfer out to mine without paying the 25% penalty charge if we need to?

masonic

No, ISAs are not transferable between individuals. But you could negotiate a smaller exchange deposit, withdraw from yours penalty free and use his for the mortgage deposit a few weeks later.

greenglide

I thought that the LISA bonus (and the HTB ISA bonus as well) were only used at completion (the mortgage deposit) anyway and couldn't be used at the exchange stage?

masonic

greenglide wrote: »

I thought that the LISA bonus (and the HTB ISA bonus as well) were only used at completion (the mortgage deposit) anyway and couldn't be used at the exchange stage?

No, the rules surrounding LISAs are different to those for HTB ISAs. You are correct that the HTB ISA bonus can only be used at completion.