Right to Buy vs MoneyBox Lifetime ISA

Hi All,

Hope you can help with the below.

Basically, I am in the process of purchasing a council maisonette/flat from the council via the Right to Buy Scheme in London. The market price is £470,000.00, however, we qualified for a discount due to our tenure with the council of £112,800.00. Therefore the Purchase price the Council have offered us to purchase the property at is £357,200.00. I have funds saved in our MoneyBox Lifetime ISA which I would like to use against our deposit. However, MoneyBox have advised that the funds we have saved up through their scheme would still be subject to a penalty fee (we lose the government bonus as well as get charged a percentage of what we put in).

My Broker has advised me to challenge this in case I dont lose out on additional funds. My Broker's understanding is surely the price that you are exchanging at which is £357,200.00, and not at £470,000.00, is below the threshold of £450,000.00 which MoneyBox and LifeTime ISA stipulate. If this is the case, I hope I would not lose out or be penalised on the government contribution we have received.

I have spoken to HMRC and they were not sure.

Please can you help with the above query and provide clarity, as I do not want to close my Moneybox account and lose out on possible funds which I could be entitled to in case wrong information has been advised.

Kind Regards,



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