LISA help

Halfwaythere

Hi can someone help me please. We are currently saving and looking to buy a home in October/November 2021. I have opened my LISA in September this year so I will qualify to get the £1k benefit in April and be able to withdraw without a penalty in October as it has been a year. My husbands LISA however was initially refused something to do with the passport photo not being good enough and he has forgotten to send another and open it. Does this mean their is no point him opening it now as it will be less than a year when we buy and he can’t do that OR can he open it, get the benefit then transfer the money to mine ? Or is this not allowed ? Many thanks in advance 

Alexland

ISAs including LISAs are not transferable between different people. He could open it with a minimum contribution now to keep his options open incase your purchase is delayed. It's the solicitor who makes the penalty free withdrawal. Your username is very appropriate for this problem!

Halfwaythere

Haha thanks so much. He’s such a pain if only he’d have contacted them again when I said a billion times now we miss out on £1k! 

Alexland

Halfwaythere said:

Haha thanks so much. He’s such a pain if only he’d have contacted them again when I said a billion times now we miss out on £1k! 

I found it's easier to offer to complete the paperwork for my partner. I try and tell her what it's all about and she says 'just tell me where to sign'. Property purchases always seem to take longer than expected.
Your bonus should be added to the account a month or two after each contribution. Remember you can top up the LISA(s) with another £4k from 6th April.

Halfwaythere

I do the same but he had access to the photocopier at work so I was trapped into his forgetfulness 😂 thanks anyway for advice 

Alexland

If he doesn't earn the bonus it might have been cheaper to buy a photocopier! If he opens it with £1 now you can take a view on if its worth adding the extra £3999 in March.

grumiofoundation

Halfwaythere said:

Hi can someone help me please. We are currently saving and looking to buy a home in October/November 2021. I have opened my LISA in September this year so I will qualify to get the £1k benefit in April and be able to withdraw without a penalty in October as it has been a year. My husbands LISA however was initially refused something to do with the passport photo not being good enough and he has forgotten to send another and open it. Does this mean their is no point him opening it now as it will be less than a year when we buy and he can’t do that OR can he open it, get the benefit then transfer the money to mine ? Or is this not allowed ? Many thanks in advance 

I may be reading this wrong but you seem to be saying you will only get 1k bonus?

LISA contribution is based on tax year not calendar so you will be able to contribute 2 x £4000 by next Oct/Nov. 
You can pay in £4000 now and another £4000 when the new tax year starts.

As Alexland suggested your husband opening now with £1 is a no-brainer (to get the clock rolling).

Even if you don't feel confident paying in £4000 this year (because think will complete before the 12-month has elapsed). Still worth having open in event purchase takes longer than you expect/delayed etc because then he could contribute £4000 next tax year (bonus paid ~5 weeks later depending on exactly when in month contribute).