Lifetime Isa

Dk1989

My husband currently has a lifetime Isa with moneybox. We are waiting for our mortgage offer at the minute for a newbuild that won’t be ready until mid January. Are we able to put more money into the Isa to get our full bonus for this year? Would it be in on time. How do we go about getting the money to the solicitor then? I have no idea how it works and my solicitor seems to only know about the help to buy Isa.

thank you

masonic

Money paid in before 4th December would have a bonus claim processed during December and paid before mid-January (usually it is by the end of the month, but with Christmas it might be delayed until early January). Even if you have to make a withdrawal before the bonus is paid, the bonus money can be left in the LISA to be used towards retirement savings, or withdrawn subject to penalty.

Dk1989

So if we were to pay money into it now it would be paid before mid January? Do you know When the funds usually be needed by the solicitor?

masonic

Dk1989 said:

So if we were to pay money into it now it would be paid before mid January?

Yes

Dk1989 said:

Do you know When the funds usually be needed by the solicitor?

The solicitor will need to apply to the scheme to make the withdrawal from the LISA. The timescale is really a question for them, can't be generalised, especially given the proximity to the holidays.

eskbanker

masonic said:

Even if you have to make a withdrawal before the bonus is paid, the bonus money can be left in the LISA to be used towards retirement savings, or withdrawn subject to penalty.

Perhaps worth noting that a first time property purchase can be supported by multiple penalty-free withdrawals from a LISA, so, if the solicitor is amenable, the bulk can be accessed ahead of the bonus landing, and the residual bonus amount withdrawn a bit later, which could still be without penalty deduction if in time to comply with the regulations about putting it towards the value of the property.

masonic

eskbanker said:

masonic said:

Even if you have to make a withdrawal before the bonus is paid, the bonus money can be left in the LISA to be used towards retirement savings, or withdrawn subject to penalty.

Perhaps worth noting that a first time property purchase can be supported by multiple penalty-free withdrawals from a LISA, so, if the solicitor is amenable, the bulk can be accessed ahead of the bonus landing, and the residual bonus amount withdrawn a bit later, which could still be without penalty deduction if in time to comply with the regulations about putting it towards the value of the property.

Good point, if mid-January is just exchange, then there could be plenty of time to combine the rest for completion.