Help to Buy ISA to Lifetime ISA Transfer

easty

My girlfriend started a help to buy ISA last year, and when I looked at it for her I let her know that it could only be used to purchase a property up to the value of £250k. While this is good for a first time buyer, we'll be looking to buy a place together, it won't be my first property, and we'll probably want to spend around £300k.

I suggested moving it to a lifetime ISA, as that would allow us to go for a £300k property.

I've looked a little further into the LISA, and couldn't find the answer to something - with the help to buy ISA you can only pay in a max of £200 a month, and it's got to be done by standing order. I can't see thats the case with the LISA. I can see you can pay in a max of £4k a year, but does it need to be spread over the whole year? Can you just stick a lump sum of £4k in there straight away, and still qualify for the bonus?

Can anyone recommend a LISA? She currently has a Bank of Scotland help to buy ISA, they don't offer a LISA, so she'll need to transfer it out.

Thanks

grumiofoundation

Yes you can just pay in £4000 in one lump sum. 

She doesn't need to transfer the help to buy ISA.

She can just open lifetime ISA as normal - Nottingham best interest rate currently (wont acceptors transfers from HTB ISA).

https://www.moneysavingexpert.com/savings/lifetime-isas/#bestbuys

easty

grumiofoundation said:

Yes you can just pay in £4000 in one lump sum. 

She doesn't need to transfer the help to buy ISA.

She can just open lifetime ISA as normal - Nottingham best interest rate currently (wont acceptors transfers from HTB ISA).

https://www.moneysavingexpert.com/savings/lifetime-isas/#bestbuys

Thanks, but she will need to transfer the help to buy ISA, as that's not fit for purpose anymore. If it only allows for home purchase of up to £250k then it doesn't make sense to keep it open. Are there lifetime ISA's that do accept a transfer in from Help to Buy ISA?

grumiofoundation

No she doesn’t need to transfer the help to buy ISA (as in ISA transfer). 

She can a) keep paying in (assuming not paying into another cash isa this tax year) is the interest rate is good enough to want to keep. 
b) close and withdraw the money penalty free if not worried about ISA subscription limits. This money can then be paid into LISA if needed. 
c) can also transfer HTB to another cash ISA (Orr other type) if worried about ISA limits


Make sure you, and more importantly your girlfriend, fully understand the product (withdrawal penalty etc) before committing large sums of money to it.