Using Skipton LISA for a property purchase

thaddy

Some questions on using a Skipton LISA:

1) If my LISA account has slightly more money than is required to complete a property purchase can the conveyancer request the full amount available in the account and if so, what happens to the difference once the deposit is paid? For example, if I have £10k available and my deposit is £9k

2) Skipton state that if the completion doesn't take place within a certain timeframe the funds have to be returned to the bank but if your LISA account has been closed in the process, the 12months minimum withdrawal period will restart unless you hold another account with them. Is it worth opening a Skipton savings account during the mortgage application process or asking the conveyancer to leave a small amount in the account to keep it open? 

3) Can a LISA be used for both property purchase and pension savings? 

I can't seem to find this information anywhere so hopefully someone can help.

eskbanker

thaddy said:

1) If my LISA account has slightly more money than is required to complete a property purchase can the conveyancer request the full amount available in the account and is so, what happens to the difference once the deposit is paid? For example, if I have £10k available and my deposit is £9k

You and your conveyancer have to declare that any LISA money withdrawn without penalty will be put towards the purchase of the property, so if you're only needing £9K towards that then you either leave the surplus £1K in the account or pay the withdrawal penalty if you choose to take it out.  Better to increase your deposit to be closer to your LISA balance though....

thaddy said:

2) Skipton state that if the completion doesn't take place within a certain timeframe the funds have to be returned to the bank but if your LISA account has been closed in the process, the 12months minimum withdrawal period will restart unless you hold another account with them. Is it worth opening a Skipton savings account during the mortgage application process or asking the conveyancer to leave a small amount in the account to keep it open?

Leaving a small amount in the account seems a sensible insurance policy, especially if you don't actually need it all for the purchase anyway.

thaddy said:

3) Can a LISA be used for both property purchase and pension savings?

Yes, if you leave it open by making a partial withdrawal.  However, it's generally recommended to look at a S&S LISA rather than a cash one, whose real-terms value will be eroded heavily during the lengthy period until you'd gain access to it.

thaddy

Thank you very much for the detailed response!