LISA Help (buying 4 weeks too early)

QofP555

My LISA is elligible for withdrawl on Aug 16th but we are exchanging contracts about a month earlier- July 18th. I'd get a 2k bonus if we were buying a month later but it's not feesable to delay for a month plus our rent is 2k a month anyway. 

I'm assuming not, but is there any way to withdraw the LISA a month after completion and put it towards the house with the bonus. For example, paying a 'larger deposit' by paying 10% on completion and my additional LISA 10k a month later. 

Many thanks

silvercar

You need to be completing on or after 16 August, otherwise you pay the penalty on withdrawing funds. This means you will get back less than you paid in!

you said you are exchanging in 18 July, so the key question is when are you completing?

saajan_12

QofP555 said:

My LISA is elligible for withdrawl on Aug 16th but we are exchanging contracts about a month earlier- July 18th. I'd get a 2k bonus if we were buying a month later but it's not feesable to delay for a month plus our rent is 2k a month anyway. 

I'm assuming not, but is there any way to withdraw the LISA a month after completion and put it towards the house with the bonus. For example, paying a 'larger deposit' by paying 10% on completion and my additional LISA 10k a month later. 

Many thanks

The LISA money can go towards the final completion monies, doesn't have to be there in time for exchange. However to use the LISA  you'd still have to remain in your rental and wait to complete (and hence move) on or after 16 Aug. 

While it'd cost you an extra month's rent, you'd save the mortgage interest for that month which is usually most of the payment. 

The alternative is to leave the money in the ISA and use it for retirement penalty free. Though that may be too far off for you. 

QofP555

Apologies, we are completing mid July, not exchanging contracts. 

saajan_12

QofP555 said:

Apologies, we are completing mid July, not exchanging contracts. 

Then its a no go, this is very much about the letter of the law and you will face the penalty if you withdraw the money a month later. Options are 
1) delay completion
2) take the hit of the penalty
3) leave the money there until retirement

silvercar

saajan_12 said:

QofP555 said:

Apologies, we are completing mid July, not exchanging contracts. 

Then its a no go, this is very much about the letter of the law and you will face the penalty if you withdraw the money a month later. Options are 
1) delay completion
2) take the hit of the penalty
3) leave the money there until retirement

This.

Remember that it’s not just a lack of bonus you will suffer, but a penalty on withdrawal.