Lifetime ISAs guide

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  • Alexland
    Alexland Posts: 9,653 Forumite
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    Oasis1 wrote: »
    Did you make a decision on this and if so, how did it go? I'm considering doing the same, though wondering if any other banks might throw their hat in the ring with some better rates...

    I just checked the FCA list of authorised ISA Managers and if any of the main banks do intend to launch LISAs they haven't made the FCA aware yet. I was wondering if some would be motivated by the inability to offer new HTB ISAs after 30 Nov 19.

    Alex
  • CharlotteO86
    CharlotteO86 Posts: 1 Newbie
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    Hello,

    One thing I was hoping someone may be able to clear up about stocks and shares LISAs. Are you able to transfer your money from a stocks and shares LISA to a normal LISA after a few years? Or do you have to keep it in a stocks and shares LISA until you can withdraw it at 60?

    Many thanks in advance!
  • Alexland
    Alexland Posts: 9,653 Forumite
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    You are allowed to transfer a S&S LISA into a Cash LISA however there are only a small number of LISA providers so it would only be possible if there are still Cash LISA providers accepting inbound transfers in future.

    Generally if you are going to be withdrawing at age 60+ then S&S is most suitable.

    Alex
  • Mlnewman
    Mlnewman Posts: 2 Newbie
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    Can I have a LISA and my partner a help to buy ISA and then combine then to purchase our first home?
    Also is it possible to use the LISA to purchase my first home in the Isle of Man?
  • eskbanker
    eskbanker Posts: 31,057 Forumite
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    Mlnewman wrote: »
    Can I have a LISA and my partner a help to buy ISA and then combine then to purchase our first home?
    Good news: yes.
    Mlnewman wrote: »
    Also is it possible to use the LISA to purchase my first home in the Isle of Man?
    Bad news: no....

    https://www.gov.uk/guidance/lifetime-isas-for-isa-managers#withdrawals-for-first-time-residential-purchase:
    charge-free withdrawals can be made from a LISA when funds are to be put towards the purchase price of a first time residential purchase in the UK by the LISA investor

    https://www.gov.im/about-the-government/departments/cabinet-office/external-relations/constitution/:
    The Isle of Man is not, and never has been, part of the United Kingdom
  • needtowinthelottery
    needtowinthelottery Posts: 56 Forumite
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    I’m sorry if I’m posting in the wrong place or this question has been asked before. I’ve searched high and low and can’t seem to find anyone who has been in the same situation...

    My husband and I are both first time buyers. This week we’ve had an offer accepted on a house and put a mortgage application in (fingers crossed!) and having instructed a solicitor to do our conveyancing, we’re going through the paperwork and have to complete a summary of where our deposit is coming from.

    £10k of it is coming from Skipton Lifetime ISAs - one mine, one my husband’s, each with £5k in total. However, we’ve both paid in the maximum £4k but haven’t yet received the full HMRC bonus due to dates we’ve paid in the final payment.

    My question is, can the conveyancing solicitor claim the whole £5k at point of sale or do we have to wait for the full £1k bonus to be paid in to fill in / submit the conveyancing forms?

    Really worried about this holding up the process. We’re buying a house which is already empty and the seller is keen to progress quickly.

    Any advice welcome. Thanks in advance
  • eskbanker
    eskbanker Posts: 31,057 Forumite
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    needtowinthelottery wrote: »
    My question is, can the conveyancing solicitor claim the whole £5k at point of sale or do we have to wait for the full £1k bonus to be paid in to fill in / submit the conveyancing forms?
    Neither - the conveyancer can only claim based on what's actually in the account but if you don't want to wait for the last chunk of bonus to be paid, make multiple withdrawals from the LISAs, as covered at https://www.gov.uk/guidance/lifetime-isas-for-isa-managers#withdrawals-for-first-time-residential-purchase:
    Withdrawal amount for first time purchase of property

    The investor can make several charge free withdrawals from their LISA for a first time residential purchase. There is also no minimum amount that must be withdrawn from a LISA. Providing the relevant conditions are met for each withdrawal made for first time residential purchase.
  • needtowinthelottery
    needtowinthelottery Posts: 56 Forumite
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    That’s really useful, thanks eskbanker. I’ll discuss with the conveyancing solicitor and hopefully we can get the full bonuses withdrawn before completion (fingers crossed, trough wood that it all goes along to plan).
  • darrylporter43
    darrylporter43 Posts: 1 Newbie
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    I currently have a mortgage in my name alone which is tied in until 2022
    This mortgage is in my name only.
    My partner has never owned a home or had a mortgage and we are looking for her to invest in in a LISA. I see from the information we can purchase a house together.
    My question is can we use it to buy the house I live today when my fixed term is over together or does it need to be a new property?
    Thanks
  • eskbanker
    eskbanker Posts: 31,057 Forumite
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    darrylporter43 wrote: »
    I currently have a mortgage in my name alone which is tied in until 2022
    This mortgage is in my name only.
    My partner has never owned a home or had a mortgage and we are looking for her to invest in in a LISA. I see from the information we can purchase a house together.
    My question is can we use it to buy the house I live today when my fixed term is over together or does it need to be a new property?
    It should be possible for her to use a LISA to buy into your property (provided the value is within scheme limit, etc) but only if it's processed as a formal sale and (re)purchase or title transfer, involving conveyancing fees, etc, rather than simply remortgaging, so the costs of doing so will eat into the bonuses earned in the LISA.
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