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  • FIRST POST
    • MSE Helen S
    • By MSE Helen S 16th Mar 16, 4:06 PM
    • 75Posts
    • 44Thanks
    MSE Helen S
    Lifetime ISAs guide
    • #1
    • 16th Mar 16, 4:06 PM
    Lifetime ISAs guide 16th Mar 16 at 4:06 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 Former MSE Andrea; 14-05-2018 at 12:33 PM.
Page 107
    • Oasis1
    • By Oasis1 4th Sep 19, 8:57 PM
    • 453 Posts
    • 414 Thanks
    Oasis1
    Nice one - thank you! I'm just conversing with a Moneybox rep via the app now I've downloaded it; ensuring there are no exit/closure fees of any kind etc. (which may negate the difference in interest between Skipton vs. Moneybox and ergo make transferring, fruitless..)

    I understand that interest is paid monthly (still at rate of 1.4% AER overall...) but that must be nice to see the balance going up monthly! Plus, upon transferring away from Skipton the balance will be slightly higher due to the pro rata interest (still works out with 1% on that amount & 1.4 for the remainder of the year AER but psychologically, looking at a higher balance would be nice! )
    Originally posted by NevvyC

    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...

    • Alexland
    • By Alexland 5th Sep 19, 7:14 AM
    • 5,765 Posts
    • 5,032 Thanks
    Alexland
    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...
    Originally posted by Oasis1
    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
    • By CharlotteO86 10th Sep 19, 2:14 PM
    • 1 Posts
    • 0 Thanks
    CharlotteO86
    Stocks and shares LISA
    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
    • By Alexland 10th Sep 19, 3:50 PM
    • 5,765 Posts
    • 5,032 Thanks
    Alexland
    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
    • By Mlnewman 12th Sep 19, 7:12 AM
    • 2 Posts
    • 0 Thanks
    Mlnewman
    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
    • By eskbanker 12th Sep 19, 10:37 AM
    • 11,388 Posts
    • 14,133 Thanks
    eskbanker
    Can I have a LISA and my partner a help to buy ISA and then combine then to purchase our first home?
    Originally posted by Mlnewman
    Good news: yes.

    Also is it possible to use the LISA to purchase my first home in the Isle of Man?
    Originally posted by Mlnewman
    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
    • By needtowinthelottery 15th Sep 19, 8:11 PM
    • 56 Posts
    • 41 Thanks
    needtowinthelottery
    Skipton Lifetime ISAs - purchasing first home - HMRC interest question
    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
    • By eskbanker 15th Sep 19, 11:23 PM
    • 11,388 Posts
    • 14,133 Thanks
    eskbanker
    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?
    Originally posted by needtowinthelottery
    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
    • By needtowinthelottery 16th Sep 19, 4:53 AM
    • 56 Posts
    • 41 Thanks
    needtowinthelottery
    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
    • By darrylporter43 23rd Sep 19, 12:06 PM
    • 1 Posts
    • 0 Thanks
    darrylporter43
    LISA advice
    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
    • By eskbanker 23rd Sep 19, 12:15 PM
    • 11,388 Posts
    • 14,133 Thanks
    eskbanker
    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?
    Originally posted by darrylporter43
    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.
    • Alexland
    • By Alexland 23rd Sep 19, 3:10 PM
    • 5,765 Posts
    • 5,032 Thanks
    Alexland
    Yes the legal fees for you as the seller and her as the buyer (her solicitors would want to run full searches, etc to cover themselves) will run into thousands.
    • Mlnewman
    • By Mlnewman 23rd Sep 19, 6:16 PM
    • 2 Posts
    • 0 Thanks
    Mlnewman
    Thanks so much for the reply, I've opened my LISA and started saving I will get my partner to sort his help to buy 😊 so glad to hear we can combine them for our first home together, he's over the age threshold for the LISA unfortunately.
    How will it work though? As Lisa buying max is 450k but help to buy is 250k so will both combined mean we have to take the lower one?

    [QUOTE=eskbanker;76265376]Good news: yes.
    • eskbanker
    • By eskbanker 23rd Sep 19, 6:55 PM
    • 11,388 Posts
    • 14,133 Thanks
    eskbanker
    Thanks so much for the reply, I've opened my LISA and started saving I will get my partner to sort his help to buy 😊 so glad to hear we can combine them for our first home together, he's over the age threshold for the LISA unfortunately.
    How will it work though? As Lisa buying max is 450k but help to buy is 250k so will both combined mean we have to take the lower one?
    Originally posted by Mlnewman
    Yes, the lower figure applies when combining (unless buying in London), as the purchase must comply with the rules of both schemes.
    • Bursk
    • By Bursk 26th Sep 19, 4:48 PM
    • 4 Posts
    • 0 Thanks
    Bursk
    I recently turned 40 and have a Skipton LISA with just over 10k in it. I paid in 2x 4k in the previous two tax years but haven't paid in anything for this tax year. I spoke today with both AJ Bell and Hargreaves Lansdown but neither will allow me to transfer my LISA to them. I won't want to access my LISA before the age of 60 so I'd rather be in a S&S LISA if possible. Do I have any S&S LISA options available to me? Will Moneybox allow me to open a new S&S LISA with them and transfer in the Skipton LISA? If not, what's my best option considering Skipon are only paying me 1% per annum as things stand?
    • eskbanker
    • By eskbanker 26th Sep 19, 5:23 PM
    • 11,388 Posts
    • 14,133 Thanks
    eskbanker
    I recently turned 40 and have a Skipton LISA with just over 10k in it. I paid in 2x 4k in the previous two tax years but haven't paid in anything for this tax year. I spoke today with both AJ Bell and Hargreaves Lansdown but neither will allow me to transfer my LISA to them. I won't want to access my LISA before the age of 60 so I'd rather be in a S&S LISA if possible. Do I have any S&S LISA options available to me? Will Moneybox allow me to open a new S&S LISA with them and transfer in the Skipton LISA? If not, what's my best option considering Skipon are only paying me 1% per annum as things stand?
    Originally posted by Bursk
    HL only seem to allow transfers into their LISA from non-Lifetime ISAs, while AJ Bell have a long-standing software issue that prevents over-40s from opening to transfer in (which should theoretically be possible): https://forums.moneysavingexpert.com/showthread.php?p=74299698#post74299698

    According to https://www.moneyboxapp.com/faqs/lisa/transfer-lifetime-isa-to-moneybox/, Moneybox should allow the transfer into their LISA but probably best check with them first, just in case your age causes issues there too!
    • Bursk
    • By Bursk 26th Sep 19, 6:08 PM
    • 4 Posts
    • 0 Thanks
    Bursk
    I'll contact Moneybox and see what they say. Thanks, Picard.
    • Bursk
    • By Bursk 27th Sep 19, 4:48 PM
    • 4 Posts
    • 0 Thanks
    Bursk
    I sent Moneybox the following in an email:
    "I recently turned 40 and have a Skipton cash LISA with just over 10k in it. I paid in 2x 4k in the previous two tax years but haven't paid in anything for this tax year. Will Moneybox allow me to open a new stocks & shares LISA and transfer in the Skipton cash LISA?"

    And they replied with:
    "Yes, you'd be able to open a Moneybox LISA and transfer your existing LISA in. Once you've registered, just head to Settings > Transfer > Transfer in to send yourself a transfer in form."

    So unless they've skipped over the part where I said I was 40, it looks like I can do it. Anyone have any thoughts on the funds offered by Moneybox? Since it'll be at least 20 years before I start accessing the LISA money, I'm mostly interested in the Adventurous option.
    • eskbanker
    • By eskbanker 27th Sep 19, 5:02 PM
    • 11,388 Posts
    • 14,133 Thanks
    eskbanker
    Anyone have any thoughts on the funds offered by Moneybox?
    Originally posted by Bursk
    There's not generally much enthusiasm on here for Moneybox, as they're typically perceived as relatively high cost and low choice - obviously circumstances dictate that they're more appealing to a 40 year old wanting to transfer in a LISA who doesn't have access to the two leading products, but you might wish to cast your net wider before committing as other options are available in the market:

    https://moneytothemasses.com/saving-for-your-future/compare-the-best-and-cheapest-lifetime-isa
    • Bursk
    • By Bursk 27th Sep 19, 9:03 PM
    • 4 Posts
    • 0 Thanks
    Bursk
    That link suggests that the max annual charge (once I've put another 4k in for approx 15k total) with Moneybox would be 0.83%, which doesn't seem awful. Am I missing something?
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