Trying to use my ISA to buy a house

Naomi_1

Hello, I am new to this forum and I would be grateful for any advice with an issue I have in trying to use my LISA to buy a house.

My husband and I are in the process of buying a house and are supposed to be exchanging contracts this week at some point. My Solicitor notified me on Friday to say that they wouldn't be requesting the money from my LISA until closer to the completion date (this date is unknown as far as I know as it is a new build, but could be around Dec/Jan time). 

The solicitor is asking if we have funds outside of the LISA to pay the 5% deposit which is required at exchange of contracts. And while we have just enough, it will mean that we won't have anything left over to pay the legal fees and other cost associated with moving.

I am confused about why the money in my LISA is not being requested in order to assist with paying the deposit and I have no idea what it will be used for if requested closer to completion. I've tried to get an answer out of my solicitor but it is impossible to get hold of them. So I was wondering if anyone else had been in the situation? 
Thanks in advance.
Naomi 

bhjm

Naomi_1 said:

 I've tried to get an answer out of my solicitor but it is impossible to get hold of them.
Naomi 

are you happy with the solicitor you are using?

eskbanker

Perhaps the solicitor is getting LISA confused with the Help to Buy ISA, which does involve use of the bonus only at completion, but there is no such restriction for LISAs, so insist on its use for exchange if that's how you choose to fund the purchase, especially if completion will be within the next 90 days....

Naomi_1

bhjm said:

Naomi_1 said:

 I've tried to get an answer out of my solicitor but it is impossible to get hold of them.
Naomi 

are you happy with the solicitor you are using?

So far no, I'm very disappointed.

Naomi_1

eskbanker said:

Perhaps the solicitor is getting LISA confused with the Help to Buy ISA, which does involve use of the bonus only at completion, but there is no such restriction for LISAs, so insist on its use for exchange if that's how you choose to fund the purchase, especially if completion will be within the next 90 days....

Thank you, that is what I thought might be the issue but without being able to talk to them I've just been fumbling around in the dark trying to figure it out. 

Unfortunately I am also in the dark in respect of the completion date and the Solicitors stated the 90 day completion deadline as part of their notification for not requesting the funds. However, I have been told by my LISA provider that the Solicitors are able to request an extension should completion not happen within 90 days. 

I'll try and get in touch with my Solicitor again tomorrow to try and get some kind of answer out of them. 

eskbanker

Naomi_1 said:

Unfortunately I am also in the dark in respect of the completion date and the Solicitors stated the 90 day completion deadline as part of their notification for not requesting the funds. However, I have been told by my LISA provider that the Solicitors are able to request an extension should completion not happen within 90 days. 

Extensions can be sought for further periods of 60 and then 30 days, so this effectively means that you have to complete within 180 days of withdrawing the funds, although perhaps the solicitor doesn't want to do this for some reason?

https://www.gov.uk/guidance/lifetime-isa-withdrawals-for-a-first-time-residential-purchase#con-dec

When a property purchase is proceeding towards completion but is not expected to complete within 90 days of withdrawal of the funds, the investor’s conveyancer can ask the Lifetime ISA manager for a 60 day extension followed by a further 30 day extension, if required.

However, if you find it difficult to contact your solicitor and also don't trust what they say when you do hear from them, then maybe a new solicitor might be a good idea as suggested above....

Naomi_1

Thanks for taking the time to reply, I really appreciate it.