Worth transferring S&S LISA to S&S ISA?

WagathaChristie

Hi all,

Opened an S&S LISA with AJ Bell around 5 years ago and have put in max amount each year, which is all I can afford to currently save. I’m also looking to buy a place in London in the next year. 

As I won’t be able to withdraw the money in the LISA before I’m 60 or use it to buy property (as I’m in London and looking to buy a place over £450k, which is over the LISA allowance), I’m wondering if I should transfer it to a S&S ISA for more flexibility and to help with my house deposit. 

Re pension provisions for the future, I have a decent DB pension building up (for now) through my public sector job. 

Thanks all!

Alexland

If you can afford to buy the place you want even without withdrawing from the LISA then I would suggest leaving the money invested in the LISA until age 60+. I opened my LISA at launch in 2017 when I was already a homeowner and have been filling it ever since. I doubt it will be needed for my retirement as I also have good pensions but expect it will be useful to help with my kids weddings, house deposits, etc when they are in their 20s and I am 60+. It's also a good backup fund incase I suffer any prolonged problems in my earning ability before my pension access age.
If you do need the money to support the purchase then you may have no choice but to withdraw however you might want to derisk your S&S investments asap as that's not a suitable time period for the majority of investments as the stock market could crash without warning at any time.