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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
    • 44Thanks
    MSE Helen Saxon
    Lifetime ISAs guide
    • #1
    • 16th Mar 16, 5:06 PM
    Lifetime ISAs guide 16th Mar 16 at 5:06 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you haven't already, join the forum to reply.


    Thanks folks,
    Last edited by MSE Andrea; 14-05-2018 at 1:33 PM.
Page 83
    • Owen1991
    • By Owen1991 16th May 18, 5:05 PM
    • 52 Posts
    • 99 Thanks
    Owen1991
    Just wondering if anyones had 18/19 bonus paid in yet, I know it's still early?
    12k in 2018 - 6650/12000 ~ #101
    13797 in Lifetime ISA
    • masonic
    • By masonic 16th May 18, 8:54 PM
    • 9,916 Posts
    • 7,133 Thanks
    masonic
    Just wondering if anyones had 18/19 bonus paid in yet, I know it's still early?
    Originally posted by Owen1991
    Nothing yet from AJ Bell, and I deposited on the first day of the new tax year.
    • Alexland
    • By Alexland 16th May 18, 9:44 PM
    • 3,369 Posts
    • 2,697 Thanks
    Alexland
    oh thank you great replies, so next year i can put 16k in my isa and 4k for a lisa? thanks
    Originally posted by madfistbt

    Yes that would be fine.
    • playz28
    • By playz28 24th May 18, 8:47 PM
    • 5 Posts
    • 4 Thanks
    playz28
    Just checked my Hargreaves account and my second bonus has been paid. Paid in the full 4k on the 6th April.
    • Billie1981
    • By Billie1981 28th May 18, 9:24 PM
    • 1 Posts
    • 0 Thanks
    Billie1981
    Lifetime ISA
    Hi, myself and my husband are looking to buy our first home within the next 2 years, we have heard that we can both open up a lifetime ISA to be able to benefit from the government bonus. I was just interested to know who the best company is to go with with at the moment and also any Other tips you can give us. Thanks
    • eskbanker
    • By eskbanker 29th May 18, 12:54 AM
    • 8,211 Posts
    • 9,214 Thanks
    eskbanker
    Hi, myself and my husband are looking to buy our first home within the next 2 years, we have heard that we can both open up a lifetime ISA to be able to benefit from the government bonus. I was just interested to know who the best company is to go with with at the moment and also any Other tips you can give us. Thanks
    Originally posted by Billie1981
    Best place to start is the MSE article that this thread was created to discuss, i.e. https://www.moneysavingexpert.com/savings/lifetime-ISAs

    Realistically there is only one choice, Skipton Building Society, as they offer the only cash-based product on the market. There are a few with stocks & shares products but if you're looking to buy in the short to medium term then investment risk is best avoided....
    • sonicology
    • By sonicology 29th May 18, 10:51 PM
    • 148 Posts
    • 730 Thanks
    sonicology
    Just checked my Hargreaves account and my second bonus has been paid. Paid in the full 4k on the 6th April.
    Originally posted by playz28
    I just had the second bonus paid to my AJ Bell account today, nice surprise since I wasn't expecting it for another week or so.
    • Pennypincher120
    • By Pennypincher120 31st May 18, 11:35 PM
    • 4 Posts
    • 0 Thanks
    Pennypincher120
    Hello!

    Sorry if a similar question has already been asked, there are a lot of pages to this thread and I couldn't find an answer when I searched.

    My partner and I have found a house we want to make an offer on as FTBs... but our LISA hasn't been open a full year yet. The anniversary date is the end of October. I believe that means we wouldn't be able to exchange until October? We do however already have our deposit amount saved up, it is just a case of waiting for it to be able to be withdrawn.

    At what point do we inform the seller of the circumstances? They have no chain so there is a chance they may wait, but we are prepared that they may not want to. Do we tell them when we make the offer, or is it something we instruct the solicitor to do (in the event that the offer is accepted)?
    • stevenhp1987
    • By stevenhp1987 1st Jun 18, 12:29 AM
    • 710 Posts
    • 551 Thanks
    stevenhp1987
    Hello!

    Sorry if a similar question has already been asked, there are a lot of pages to this thread and I couldn't find an answer when I searched.

    My partner and I have found a house we want to make an offer on as FTBs... but our LISA hasn't been open a full year yet. The anniversary date is the end of October. I believe that means we wouldn't be able to exchange until October? We do however already have our deposit amount saved up, it is just a case of waiting for it to be able to be withdrawn.

    At what point do we inform the seller of the circumstances? They have no chain so there is a chance they may wait, but we are prepared that they may not want to. Do we tell them when we make the offer, or is it something we instruct the solicitor to do (in the event that the offer is accepted)?
    Originally posted by Pennypincher120
    You instruct the solicitor to use your LISA to get the funds (after the 1 year opening time...). The money cannot be withdrawn until 1 year after opening.

    If they are not part of a chain, are they really willing to wait at least 5 months in limbo When they could have another buyer offer and exchange in the next month!?! I'd be informing them at the offer, that the offer is pursuant to a minimum November (until end of October + lead time on getting funds withdrawn) exchange date.

    You're basically asking them to wait almost half a year because you don't have any money right now. Why not start searching once you can withdraw the funds?
    • Alexland
    • By Alexland 1st Jun 18, 11:26 AM
    • 3,369 Posts
    • 2,697 Thanks
    Alexland
    Personally I would have the frank discussion with the seller now rather than try and string them along for 6 months. It would be downside for you if you incur legal costs and then the seller loses patience with you and withdraws from the transaction after 3 months. Even without a chain it costs money to run an empty property.


    If you really want the property and cannot avoid needing to use the LISA money then consider paying the modest withdrawal penalty. But don't withdraw it yet as the sale may fall through for other reasons.



    Alex.
    • Owen1991
    • By Owen1991 1st Jun 18, 8:39 PM
    • 52 Posts
    • 99 Thanks
    Owen1991
    Had my Skipton bonus paid for 18/19 yesterday, deposited 4000 on the 6th
    12k in 2018 - 6650/12000 ~ #101
    13797 in Lifetime ISA
    • OctoMonkey
    • By OctoMonkey 4th Jun 18, 7:43 PM
    • 1 Posts
    • 1 Thanks
    OctoMonkey
    Hi,

    Had a look through the thread but couldn't find the exact circumstances that we're in to answer my question!

    I opened a Skipton LISA on 22nd July 2017 and paid in 4,000 before the end of the 17/18 tax year and have recently received my 1,000 government bonus into the account.

    We're about to start discussing exchange and completion dates with our solicitors for the house we are buying and was wondering if it would be possible to still claim the 1,000 bonus if the completion date was 23rd July 2018?

    I know we can send the instructions to Skipton in advance that we will be withdrawing the money for a house purchase, but can we ask them to only release the funds on 23rd (i.e. after the 12 months minimum has passed) to ensure that the withdrawal qualified to retain the 1,000 bonus? Or is it too short of a time frame to expect that the LISA withdrawal and completion could happen on the same day?

    Thanks in advance for any advice.
    • masonic
    • By masonic 4th Jun 18, 7:50 PM
    • 9,916 Posts
    • 7,133 Thanks
    masonic
    I know we can send the instructions to Skipton in advance that we will be withdrawing the money for a house purchase, but can we ask them to only release the funds on 23rd (i.e. after the 12 months minimum has passed) to ensure that the withdrawal qualified to retain the 1,000 bonus? Or is it too short of a time frame to expect that the LISA withdrawal and completion could happen on the same day?
    Originally posted by OctoMonkey
    From Skipton's FAQ:
    "You!!!8217;ll need to complete an Investor Declaration form to access your Lifetime ISA funds and the form needs handing to your conveyancer who will in turn complete a Conveyancer Declaration. Once we receive the correct information from your conveyancer, we will email you to confirm before transferring the money to your conveyancer within 30 days. From this point the purchase needs to complete within 90 days or your conveyancer needs to apply for an extension."

    So it seems unlikely the "within 30 days" could be a nominated day. You would also need to confirm how many days in advance of completion your conveyancer would require cleared funds. If this is not 0, then your plan will not work.
    • claireportik
    • By claireportik 13th Jun 18, 10:14 PM
    • 1 Posts
    • 0 Thanks
    claireportik
    Lifetime isa withdrawal
    Hey guys,

    My lifetime isa is nearly at its 1 year anniversary so I'm starting to think about buying now.

    Now my question is, if I only want to use half the money in my lifetime isa for the deposit, can I use the other half for renovations? Will I be charged the 25% withdrawal fee if I do this? Or can the other half be used for fees?

    Thanks in advance.
    • eskbanker
    • By eskbanker 14th Jun 18, 1:01 AM
    • 8,211 Posts
    • 9,214 Thanks
    eskbanker
    When buying a first-time property, you can only use penalty-free LISA money towards the purchase value of the property itself, but not fees or renovations.

    https://www.gov.uk/guidance/lifetime-isas-for-isa-managers#withdrawals-for-first-time-residential-purchase clarifies that the LISA holder must formally declare
    that the withdrawal will only be used to finance the purchase price of the property
    where
    the purchase price is the value required to be paid under the sale and purchase agreement entered into in connection with the acquisition of an interest in land, this does not include any separate consideration to purchase any fixtures and/or fittings
    • masonic
    • By masonic 14th Jun 18, 6:57 AM
    • 9,916 Posts
    • 7,133 Thanks
    masonic
    Hey guys,

    My lifetime isa is nearly at its 1 year anniversary so I'm starting to think about buying now.

    Now my question is, if I only want to use half the money in my lifetime isa for the deposit, can I use the other half for renovations? Will I be charged the 25% withdrawal fee if I do this? Or can the other half be used for fees?

    Thanks in advance.
    Originally posted by claireportik
    You could always use the money to get a smaller mortgage, borrow on a 0% credit card and put the savings from the smaller mortgage repayment towards repaying the card.
    • Alexland
    • By Alexland 14th Jun 18, 7:41 AM
    • 3,369 Posts
    • 2,697 Thanks
    Alexland
    You could always use the money to get a smaller mortgage, borrow on a 0% credit card and put the savings from the smaller mortgage repayment towards repaying the card.
    Originally posted by masonic
    I have found that conveyencing usually takes longer than expected by which time some additional savings should have accumulated.

    Alex.
    • spinnin
    • By spinnin 15th Jun 18, 12:16 PM
    • 6 Posts
    • 3 Thanks
    spinnin
    Apologies if this has already been touched on, but I couldn't check every page!

    My wife has just opened a LISA for our first home together. She already has a help to buy ISA, but is planning on transferring this in to avail of the bigger LISA bonus.

    In the conditions, it seems to suggest you can transfer in a help-to-buy (once), it won't affect the 4k limit for that year, and you will get the 25% balance on all.

    I also believe it is the case that you can deposit lump sums into a LISA.

    This being so, then could we continue to lodge 200 pm into the help-to-buy ISA until the end of this tax year, then transfer it across and lodge another 4k into the LISA (either throughout the year or in lump sum), to maximise the allowances? Or are there any issues with lodging to both in the same tax year?
    • eskbanker
    • By eskbanker 15th Jun 18, 12:40 PM
    • 8,211 Posts
    • 9,214 Thanks
    eskbanker
    In the conditions, it seems to suggest you can transfer in a help-to-buy (once), it won't affect the 4k limit for that year, and you will get the 25% balance on all.

    I also believe it is the case that you can deposit lump sums into a LISA.

    This being so, then could we continue to lodge 200 pm into the help-to-buy ISA until the end of this tax year, then transfer it across and lodge another 4k into the LISA (either throughout the year or in lump sum), to maximise the allowances? Or are there any issues with lodging to both in the same tax year?
    Originally posted by spinnin
    The ability to transfer HTB balances into LISAs without affecting the 4K annual allowance for the latter only related to the 2017/18 tax year (and only for prior year HTB contributions), so that particular exemption has now expired.

    Anything put into a LISA (including transfers, except from another LISA) now counts towards the 4K annual limit....
    • Somerset La La La
    • By Somerset La La La 17th Jun 18, 12:51 PM
    • 597 Posts
    • 189 Thanks
    Somerset La La La
    Can you use LISA to Staircase on a shared ownership?

    I know you can use it for the initial share (assuming it doesn't value the home at more than 450k) - but if I buy say 50% now @ 100k, can I then staircase to 100% for another 100k (or thereabouts) in 2 years or so, using fresh LISA savings for my (re)mortgage deposit?

    I'm thinking something along the lines of:

    Current Price: 195k
    50%: 97,500
    Current LISA ~12k

    Mortgage of 83,000~ (15k/15% deposit due to bad credit)

    83k is within 3x salary so I'm hoping that will overlook some of the past credit issues.

    IF POSSIBLE - in say April 2020 - Take out another mortgage of say 80k to purcahse the remaining 50% (@ approx 100k). Use 2 years of LISA contributions (4k upped to 5k x2) to pay 10k, have 10k from other cash savings.

    Obviously having 10k stuck in a LISA wouldn't be ideal if that wasn't allowed!!! Also I assume IF you can staircase with it, if I move before staircasing I'd lose it/have to leave it til 60.... so staircasing then selling would likely prove better
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