Can you keep some of your mortgage funds to put towards work on the property?

thaddy

There seems to be no information about it anywhere but we recently purchased our property using a LISA and the amount above the deposit was just added to the completion statement so the additional amount went towards our conveyancing fees. 

thaddy

grumiofoundation said:

Walesgirl said:

Can we use money in our LISA for solicitor fees? I was on the understanding we couldn't? I'll be keeping money back to make sure we have enough to cover solicitor fees etc and only our deposit is in the LISA

I think you may be right. 
I'll be honest I was confident I had seen somewhere but I am now struggling to find confirmation of that so I am not sure on this now.

If you can't use LISA for fees I suppose what you could do I suppose is deposit the £4000, bonus makes its £5000. Then use £4000 for deposit while withdrawing £1000 yourself (paying 25% penalty) receiving £750 to use towards solicitor fees. Still a 19% bonus. I think that would work?


Edit: found link from the guardian money pages (few years ago) that agrees with you that can't use, not sure where I got idea from? 
https://www.theguardian.com/money/2018/jul/24/lifetime-isa-legal-and-survey-fees-lose-bonus

Help to Buy ISA bonuses can be used for solicitor fees so it would be unfair if LISA bonuses couldn't. On my LISA withdrawal confirmation form I had the option for any remaining amount in the account to either go to my solicitor, to remain in the account or to be sent to me. 

grumiofoundation

thaddy said:

grumiofoundation said:

Walesgirl said:

Can we use money in our LISA for solicitor fees? I was on the understanding we couldn't? I'll be keeping money back to make sure we have enough to cover solicitor fees etc and only our deposit is in the LISA

I think you may be right. 
I'll be honest I was confident I had seen somewhere but I am now struggling to find confirmation of that so I am not sure on this now.

If you can't use LISA for fees I suppose what you could do I suppose is deposit the £4000, bonus makes its £5000. Then use £4000 for deposit while withdrawing £1000 yourself (paying 25% penalty) receiving £750 to use towards solicitor fees. Still a 19% bonus. I think that would work?


Edit: found link from the guardian money pages (few years ago) that agrees with you that can't use, not sure where I got idea from? 
https://www.theguardian.com/money/2018/jul/24/lifetime-isa-legal-and-survey-fees-lose-bonus

Help to Buy ISA bonuses can be used for solicitor fees so it would be unfair if LISA bonuses couldn't. On my LISA withdrawal confirmation form I had the option for any remaining amount in the account to either go to my solicitor, to remain in the account or to be sent to me. 

Help to buy bonus can't be.
https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/#:~:text=The bonus cannot be used,associated with buying a home.

"The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home."

Based on article above and link below from AJ Bell I was incorrect earlier (edited post). Lifetime ISA funds can only be used for the house purchase, not costs associated e.g. legal fees, stamp duty. 
" Keep in mind you can't use this money for additional costs, such as solicitor fees or furniture and fittings."
https://www.youinvest.co.uk/faq/how-do-i-use-my-lifetime-isa-buy-my-first-home

thaddy

grumiofoundation said:

thaddy said:

grumiofoundation said:

Walesgirl said:

Can we use money in our LISA for solicitor fees? I was on the understanding we couldn't? I'll be keeping money back to make sure we have enough to cover solicitor fees etc and only our deposit is in the LISA

I think you may be right. 
I'll be honest I was confident I had seen somewhere but I am now struggling to find confirmation of that so I am not sure on this now.

If you can't use LISA for fees I suppose what you could do I suppose is deposit the £4000, bonus makes its £5000. Then use £4000 for deposit while withdrawing £1000 yourself (paying 25% penalty) receiving £750 to use towards solicitor fees. Still a 19% bonus. I think that would work?


Edit: found link from the guardian money pages (few years ago) that agrees with you that can't use, not sure where I got idea from? 
https://www.theguardian.com/money/2018/jul/24/lifetime-isa-legal-and-survey-fees-lose-bonus

Help to Buy ISA bonuses can be used for solicitor fees so it would be unfair if LISA bonuses couldn't. On my LISA withdrawal confirmation form I had the option for any remaining amount in the account to either go to my solicitor, to remain in the account or to be sent to me. 

Help to buy bonus can't be.
https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/#:~:text=The bonus cannot be used,associated with buying a home.

"The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home."

Based on article above and link below from AJ Bell I was incorrect earlier (edited post). Lifetime ISA funds can only be used for the house purchase, not costs associated e.g. legal fees, stamp duty. 
" Keep in mind you can't use this money for additional costs, such as solicitor fees or furniture and fittings."
https://www.youinvest.co.uk/faq/how-do-i-use-my-lifetime-isa-buy-my-first-home

I have seen those links before but I am speaking from my own recent experience where my excess LISA funds and my partner's Help to Buy ISA bonus (which was above the required property deposit) were both used to settle the outstanding amount on our completion statement. I know of others who have done the same mostly with Help to Buy ISA bonuses.