LISA bonus if I complete before paid

Dollhouse123

As we've just started a new tax year, I maxed out my LISA contribution hoping I could get the £1k bonus to go towards the purchase of my property. This is to be paid after 20th May, I hope I'm at the finishing stages of my purchase so what happens to my bonus if I complete before this date?

I ideally want to close my account as I want the £1k to go towards my house purchase and not towards retirement but not sure if there's any way around it. Can I get access to the bonus after completion?

bannanna

Yes you can but it'll be with the 25% charge. 

I looked into this yesterday, being in a very similar position!

Skipton LISA website states:

"

What if a bonus payment arrives after the house purchase has completed?

If your account is closed, it’ll be reinstated and the bonus paid in. We’d record a break in membership with the Society on the system if you don’t have any other accounts with us. We’d then contact you to confirm we’ve received the bonus and ask you what you’d like to do with the amount received. You would have to pay the 25% government withdrawal charge if you choose to withdraw it before the age of 60."

Cheese1990

You say your in the final stages put has a date been agreed yet? Also is all your money in the LISA or do you have some outside the LISA? If you have enough for the home deposit without then I'd try and push the completion date to the end of May/beginning of June. Obviously this will only work if you haven't already exchanged and you can muster up the home deposit without touching the LISA, although the solicitor could make 2 qualifying withdrawals if necessary but they typically charge between £50-£150 each time for this.

Dollhouse123

bannanna said:

Yes you can but it'll be with the 25% charge. 

I looked into this yesterday, being in a very similar position!

Skipton LISA website states:

"

What if a bonus payment arrives after the house purchase has completed?

If your account is closed, it’ll be reinstated and the bonus paid in. We’d record a break in membership with the Society on the system if you don’t have any other accounts with us. We’d then contact you to confirm we’ve received the bonus and ask you what you’d like to do with the amount received. You would have to pay the 25% government withdrawal charge if you choose to withdraw it before the age of 60."

This makes much more sense! I would be happy to take the hit of a withdrawal charge as I wouldn't be losing any of my own money.