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  • FIRST POST
    • Kyle_88
    • By Kyle_88 13th Feb 18, 5:56 PM
    • 6Posts
    • 0Thanks
    Kyle_88
    Maximising LISA Bonus
    • #1
    • 13th Feb 18, 5:56 PM
    Maximising LISA Bonus 13th Feb 18 at 5:56 PM
    Hi,

    Iíve read many of the other threads but cannot see anyone with a similar query.

    I have a H2B ISA and opened a Nutmeg LISA last April. I want to see if I can maximise the bonus on the LISA for a purchase completing in April/May. Delays the sellers side mean that it could go further - hard to tell yet.

    So I was aiming to get the max bonus by transferring my H2B ISA into the LISA in March and topping up to the £4K limit, and then when the new limit kicks in in April topping up the full £4K limit for that year immediately.

    If I did that when is the earliest I would get the bonus on the full amount in the LISA and be able to cash out?

    The other question is that the amount in the LISA will be considerably more than the deposit needed. Will I be able to cash out the full LISA and bonus?

    Thanks
Page 1
    • Alexland
    • By Alexland 13th Feb 18, 7:43 PM
    • 2,388 Posts
    • 1,789 Thanks
    Alexland
    • #2
    • 13th Feb 18, 7:43 PM
    • #2
    • 13th Feb 18, 7:43 PM
    If you are doing that you will need to act very quickly as the Skipton cut off for requesting a HTB to LISA transfer this tax year is the end of this month and it will take time for Nutmeg to sell your holdings and transfer to Skipton.

    Assuming you do the second year top-up on 6th April you should get your bonus in May or June. If you want to know the exact day get Skipton to confirm.

    No you won't be able to 'cash out' the LISA without paying the withdrawal penalty which is greater than the bonus. To avoid this penalty your solicitor should draw the full amount and use it towards the property.

    Maybe reduce the mortgage loan if it is larger than required?

    Alex
    Last edited by Alexland; 13-02-2018 at 7:48 PM.
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