Junior Isa into Lifetime Isa?

sarafdaisy

I'm looking for a bank or building society who will accept a transfer in of a matured Junior Isa to a Lifetime ISA. I have been told it is possible and also that its not. Has anyone done this successfully? Thanks.

grumiofoundation

Is the issue that lifetime ISA contributions are limited to £4,000 per tax year? 

MX5huggy

You can’t move more than £4000 to a LISA. Are they really using up their annual ISA limit so that they can’t just do this by taking the cash out and putting in a LISA?

pauln

I've got a more general query on this subject which is basically whether it's a good idea to move the money from a junior cash ISA to a lifetime cash ISA.?
We've been fortunate enough to save around £30k into a junior cash ISA for my daughter who is currently 16.  I'm keen that she uses the majority of that money for a house purchase in the future.  She seems very sensible at the moment but there's always a risk that she'll blow it on a car or worse.
I realise that if say she wants to transfer £20k into a lifetime ISA then it needs to be in 5 x £4k yearly amounts but the bonus of £1k a year to be makes it a no brainer to do this.  Am I missing something?

grumiofoundation

I've got a more general query on this subject which is basically whether it's a good idea to move the money from a junior cash ISA to a lifetime cash ISA.?

We've been fortunate enough to save around £30k into a junior cash ISA for my daughter who is currently 16.

Lifetime ISA can't be opened until she is 18 so 2 years to decide! 

I'm keen that she uses the majority of that money for a house purchase in the future.  She seems very sensible at the moment but there's always a risk that she'll blow it on a car or worse.

Does sound sensible for her to move 4k per year into LISA, and that is most likely the advice I would be suggesting in your position.
But is she keen?
It is her money to blow on a car if she wants....

I realise that if say she wants to transfer £20k into a lifetime ISA then it needs to be in 5 x £4k yearly amounts but the bonus of £1k a year to be makes it a no brainer to do this.  Am I missing something?

Yes it is a no brainer if the money will definitely be used for a house purchase* (or failing that can be used towards retirement). However due to the penalty on withdrawals being greater than the bonus it is not suitable for money that might need to be accessed for any other than the 2 reasons given above. So in that case this is a possibility it is areal brainer!

*edit - should have added but covered by Alexland below anyway a qualifying house purchase. 

Alexland

pauln said:

I've got a more general query on this subject which is basically whether it's a good idea to move the money from a junior cash ISA to a lifetime cash ISA.?

While statistics vary the average age of a first time buyer tends to be is in their 30s (with some never buying within the UK) so it's worth considering how restrictive the £450k property price cap might become over the years with inflation especially if buying with a partner to increase the borrowing power. Since launching the LISA (and the HTB ISA before that) the government has not increased the property price limits with inflation. A counterargument to that is with the benefits of a healthy LISA they might be in a good position to buy long before the average age. At the end of the day it's the child's decision when they turn 18 and it depends on their objectives and likely education, career and home ownership path. A parent can only guide them through the uncertainties and I would stop at making an absolute recommendation unless you want to be the backstop to compensating them if it's a bad choice for their future circumstances.

Albermarle

She seems very sensible at the moment but there's always a risk that she'll blow it on a car or worse.

Although of course you would want to avoid 'or worse' , learning to drive and owning a small car is almost a right of passage for many 17 year olds, including the sensible ones. 

Although it is an expensive exercise of course !