Potential problem with LISA for house purchase?
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cjv
Posts: 513 Forumite
Many information sites I have looked at state that a new build can be reserved and then a deadline is set for exchange of contracts, usually 28 days and this can be a final deadline.
From Skipton's FAQ on the LISA:
When you come to buy, you’ll need to tell your conveyancer you want to use part or all of your Skipton Online Cash Lifetime ISA towards the purchase and provide them with a declaration.
Your conveyancer also has to provide us with a declaration. It’s your responsibility to ensure this is provided, but your conveyancer should do this as part of the buying process.
Once we receive the appropriate paperwork from your conveyancer we’ll get in touch with you to confirm the instruction and then pay the amount requested to the conveyancer within 30 days without applying the government withdrawal charge.
Does anyone foresee potential problems that deadlines will be missed? If we assume 30 days does not include the time it takes for declaration/instructions etc. to be sent back and forth.
From Skipton's FAQ on the LISA:
When you come to buy, you’ll need to tell your conveyancer you want to use part or all of your Skipton Online Cash Lifetime ISA towards the purchase and provide them with a declaration.
Your conveyancer also has to provide us with a declaration. It’s your responsibility to ensure this is provided, but your conveyancer should do this as part of the buying process.
Once we receive the appropriate paperwork from your conveyancer we’ll get in touch with you to confirm the instruction and then pay the amount requested to the conveyancer within 30 days without applying the government withdrawal charge.
Does anyone foresee potential problems that deadlines will be missed? If we assume 30 days does not include the time it takes for declaration/instructions etc. to be sent back and forth.
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Comments
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You would engage your solicitors well in advance of exchanging contracts so this shouldn't be an issue if they get the withdrawal request in early enough.0
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You can also withdraw the funds after exchange and use towards your completion deposit.
You can take it out in as many withdrawals as you need ahead of completion.
For reference HL confirmed to me that although they have 30 days they will release the funds as required for completion. We will probably only have a week or two between the 1 year anniversary and completion and I spoke at length with them before we put the full allowance into the LISA to ensure we wouldn’t face the penalty.
It may be worth having the same conversation with skipton if your dates are tight.0
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