First time buying with a LISA - mortgage + LISA is more than completion statement

1HoViS

I’m close to completing on purchasing my mum’s house with the help of an equity gift and my LISA. The mortgage amount and the LISA now add up to more than the completion statement now so any excess funds according to my conveyancer have to be returned into the LISA. I’m 32 so 28 years of £8k being locked away isn’t what I want.

The figures look something like this:

Mortgage £145k
LISA £35k
Gift £20k

Original purchase price: £192k
Concessionary £172k

I was hoping and it seems wrongly assuming the extra on the mortgage would come to me so I could furnish and do the jobs to the house that need doing but instead I’m going to be left doing that over time with savings instead and the £8k locked up. I don’t fancy drawing it and losing £2.5k

My conveyancer does not have a solution for it and I need to find a way to get the funds out. The only way I can see is to up the purchase price (or drop the gift) so all LISA funds are used up. Completion was supposed to be in a few days and this has thrown a spanner in the works. This wouldn’t change the valuation or mortgage amount so seems like it should fly through. 

Anybody seen something similar or have another idea? 

Myci85

Would your mum be able to reduce the concession by £8k and then pass it back to you to fund the work etc? Though that would obviously delay completion as all new paperwork would need to be drawn up, and no idea if it would flag up with lender and be friend upon. Have you exchanged yet if completion due in a few days?

Exodi

Confused, surely the obvious thing would be for your mother to change her gift to £12k - why has the solicitor not suggested this? Appreciate it might require new paperwork, but it doesn't affect the borrow amount or deposit amount (as AFAIK LISA's can be used for deposits).

sheramber

Is the ‘gift’ of £20  the concessionary price of £172k? 

If this was reduced  the sale price would then increase.
Would that affect mortgage?