Lifetime ISA Early Withdrawal

Hayden777

Hi all, I am wondering if there is any way to withdraw or transfer from my lifetime ISA without ending up with less than I put into it. I know there’s a 25% fee on the withdrawal if it is within 12 months of opening but is there some way of perhaps transferring to a help to buy isa or some other account that means I can still get the 25% back after or when withdrawing. The reason I’m asking is because when the LISA was opened the plan was to buy a property at some point at the end of this year or next year. However, the timeline has moved up and a property has come up and I can’t wait around until 12 months is up. My LISA is a year old in the middle of July but the expected move in date is mid June. What I’m asking may be impossible, in which case I will just deal with the consequences but it’s worth a try.

Thanks.

masonic

The only way around this is to use other funds for the house purchase and instead use the LISA for retirement. You'll get free access to the money from age 60.

Hayden777

I can use other funds for the house or take the money out and deal with the loss. I was just hoping there was some way I could get more out of it or loss less upon withdrawal but thank you.

Alexland

Property conveyancing usually takes longer than expected so you might still be able to use the LISA.

However if it becomes clear that it is going ahead in those timescales you could do a partial but still significant withdraw such that the 25% penalty on the withdrawn amount is less than the 25% bonus earned on the total contribution(s) then transfer the remaining balance to a S&S LISA provider and invest it perhaps with further contributions and bonuses for age 60+