Lifetime ISA question

vikasmaddukuri · 4 June 2018 at 3:56PM

Hi,

I opened a lifetime ISA with a provider on 21st March 2018.
My first contribution to the ISA was on the same date as the opening date.

After a couple of months, I realized that my provider provides a very limited investments options for my LISA and finally, managed to switch to a different provider - the switch is complete this week.

I am saving up to buy a house next year and I have the following questions:
1. Can I use the ISA money for a house from 21st March 2019? or will it be from 1 year of opening my current ISA i.e. around the first week of June 2019?
-If 21st March 2019 is the day I can start using my ISA for a home, then how to prove this?
2. Can I add more money towards the bonus of my first house addition to the money saved in the LISA? or does it have to be just the money in the LISA for the deposit to be able to use it?

Your answers to these will be much appreciated. Any pointers to official documents, if possible, would be even more helpful.

Many Thanks.

PS: I am not sure I have posted this question in the correct place. Please move it if you think this question is in the wrong place.

masonic · 4 June 2018 at 6:12PM

1. You can use it after 21st March 2019, 1 year after opening the original account. Your new provider will have details of the original opening date.
2. I'm not sure exactly what you mean here. You can withdraw up to the whole balance of your LISA at the time of the purchase including the bonus penalty free. You are also completely free to put any amount of your non-LISA money towards the purchase, as long as you don't buy the house outright without a mortgage.

There is a wealth of information about the specifics of LISAs at the following HMRC page, but it is quite a lot to get through: https://www.gov.uk/guidance/lifetime-isas-for-isa-managers

Lifetime ISA question

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