Lifetime ISA - 2 Provider - how long to keep each open before eligible for government Bonus

bhjm

Hello,
Currently I have my 1st LISA open with Skipton (+1year) - to withdraw these funds should be free of charge/fee
If I would open now a 2nd LISA, i.e. a S&S LISA with another Provider - does this count as a separate LISA and i would need to wait for 1 year from opening until I can withdraw the Money free of charge or does it count as 1 Lisa - although with 2 Providers?

I checked the search and the gov website but could not find any answer for this.

Thank you all.

eskbanker

I can't find the definitive answer just now but believe that they'd be treated as two separate LISAs in these circumstances and would therefore both need to be open for 12 months to allow penalty-free withdrawals for a first property.  However, if you transfer the first one into the second one (or the other way round) prior to withdrawals, that would effectively preserve the earlier opening date.

I presume that your question is theoretical and rhetorical, as it wouldn't make any sense to open and fund a S&S LISA with money that you'd need within a year for a first property purchase!

bhjm

eskbanker said:

I can't find the definitive answer just now but believe that they'd be treated as two separate LISAs in these circumstances and would therefore both need to be open for 12 months to allow penalty-free withdrawals for a first property.  However, if you transfer the first one into the second one (or the other way round) prior to withdrawals, that would effectively preserve the earlier opening date.

I presume that your question is theoretical and rhetorical, as it wouldn't make any sense to open and fund a S&S LISA with money that you'd need within a year for a first property purchase!

Thanks for your reply - actually it was not rhetorical at all

I am aware that i could transfer the money from the Cash LISA to the S&S LISA - but just wanted to hear inputs if I would kept them separate, how they are each treated.

grumiofoundation

bhjm said:

eskbanker said:

I can't find the definitive answer just now but believe that they'd be treated as two separate LISAs in these circumstances and would therefore both need to be open for 12 months to allow penalty-free withdrawals for a first property.  However, if you transfer the first one into the second one (or the other way round) prior to withdrawals, that would effectively preserve the earlier opening date.

I presume that your question is theoretical and rhetorical, as it wouldn't make any sense to open and fund a S&S LISA with money that you'd need within a year for a first property purchase!

Thanks for your reply - actually it was not rhetorical at all

I am aware that i could transfer the money from the Cash LISA to the S&S LISA - but just wanted to hear inputs if I would kept them separate, how they are each treated.

 If you are using the money for a property purchase in ~1 year - if you put any money you would want to use for deposit in Stocks and Shares (versus cash) you are running the risk you will have less moeny that you started with.

If using for retirement the 1 year timescale is moot anyway.

bhjm

grumiofoundation said:

bhjm said:

eskbanker said:

I can't find the definitive answer just now but believe that they'd be treated as two separate LISAs in these circumstances and would therefore both need to be open for 12 months to allow penalty-free withdrawals for a first property.  However, if you transfer the first one into the second one (or the other way round) prior to withdrawals, that would effectively preserve the earlier opening date.

I presume that your question is theoretical and rhetorical, as it wouldn't make any sense to open and fund a S&S LISA with money that you'd need within a year for a first property purchase!

Thanks for your reply - actually it was not rhetorical at all

I am aware that i could transfer the money from the Cash LISA to the S&S LISA - but just wanted to hear inputs if I would kept them separate, how they are each treated.

 If you are using the money for a property purchase in ~1 year - if you put any money you would want to use for deposit in Stocks and Shares (versus cash) you are running the risk you will have less moeny that you started with.

If using for retirement the 1 year timescale is moot anyway.

It would be more helpful to actually answer my question, but thank you for your contribution.