Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • 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 77
    • Sussex_Dave
    • By Sussex_Dave 8th Apr 18, 7:41 PM
    • 25 Posts
    • 8 Thanks
    Sussex_Dave
    Buying in May
    Hi,

    Skipton who are my LISA provider advised have advised the first bonus will be paid on or before 4th May 2018 and we will be aiming to complete on or after the 11th May.

    My conveyancer previously advised there is nothing they need to do and I took their word at first but on researching this further I see this is incorrect. I'm finding this really frustrating as I am steering them on the process and have sent links to the gov pages which also contain the declaration samples etc.

    I'm expecting them to get to grips with this and then to be told I need to pay them a fee, but I don't think I should as it is me spending my own personal time researching this and pushing them to get a process in place.

    Is anyone else going though this at the moment? What's your experience and can you help me understand anything I need to do? I guess I will be one of the first to buy using this.

    Thanks
    Dave
    • Alexland
    • By Alexland 8th Apr 18, 8:44 PM
    • 3,024 Posts
    • 2,364 Thanks
    Alexland
    Yes your solicitors will need to apply to Skipton to make a withdrawal for a qualifying property purchase and Skipton have previously advised to allow an additional 1 month (on top of the required 12 months from the initial contribution date) for this process.

    If you are looking to complete anytime soon then I assume you opened your LISA elsewhere in April 2017 and then transferred into Skipton as they did not have the LISA product available at launch so you couldn't have done the 12 months with Skipton yet?

    Alex.
    Last edited by Alexland; 08-04-2018 at 8:49 PM.
    • Sussex_Dave
    • By Sussex_Dave 8th Apr 18, 9:02 PM
    • 25 Posts
    • 8 Thanks
    Sussex_Dave
    Thanks

    Yes I opened a Nutmeg account when the LISA's launched in April and opened with Skipton when they launched the cash lisa. Skipton advised the Nutmeg date will be honoured. The solicitors had no idea about the LISA until I raised it. I'm now in a place where I'm driving them to understand the process. All very frustrating. I've found the declaration form myself and the one they need to submit too.
    I may invoice them for consulting fees as this will help them with future clients!
    • Alexland
    • By Alexland 8th Apr 18, 9:14 PM
    • 3,024 Posts
    • 2,364 Thanks
    Alexland
    Are they charging you extra for processing the LISA as an additional funding source? Under the HTB ISA the extra fee was capped at £50+vat.
    • Sussex_Dave
    • By Sussex_Dave 8th Apr 18, 9:18 PM
    • 25 Posts
    • 8 Thanks
    Sussex_Dave
    Are they charging you extra for processing the LISA as an additional funding source? Under the HTB ISA the extra fee was capped at £50+vat.
    Originally posted by Alexland
    They are currently under the impression they don't have to do anything so no charges have been mentioned. I've been researching it thoroughly today though and sent them various links which make it very clear that they need to. I will certainly challenge any fee considering I've done so much groundwork for them. I've not agreed exchange as this has a dependency on the LISA payment...
    • Sussex_Dave
    • By Sussex_Dave 9th Apr 18, 1:06 PM
    • 25 Posts
    • 8 Thanks
    Sussex_Dave
    They are currently under the impression they don't have to do anything so no charges have been mentioned. I've been researching it thoroughly today though and sent them various links which make it very clear that they need to. I will certainly challenge any fee considering I've done so much groundwork for them. I've not agreed exchange as this has a dependency on the LISA payment...
    Originally posted by Sussex_Dave
    I'm so confused on this. The section on money saving expert appears to have been updated from initial launch which advised you could open a LISA (stocks and shares) to start the count and then transfer to a Cash LISA once launched and then use these funds to claim the bonus and that the original LISA date would drive the 12 months (new LISA provider honour this). It now states which conflicts with the initial recommendation:

    "It's worth bearing in mind that if you open multiple LISAs, each one needs to have been open for more than 12 months to qualify. However, there's a way around this. Simply transfer all the money into the oldest one before you buy !!!8211; then it all counts."

    There is then a government LISA campaign website which once again conflicts the statement on money saving expert:

    "To be able to be eligible for the government bonus, you must have opened a Lifetime ISA at least 12 months ago."

    I have agreed to buy in May using my Skipton ISA having opened a Nutmeg in April to 'start the count'. I was of course and continue to expect the bonus to be paid as it is 1 year since I opened a LISA account.

    Statement just taken from Skipton website: To do this, you must instruct your conveyancer to use your Lifetime ISA to buy your first home from 12 months after opening it. If you've transferred a Lifetime ISA to us, this period starts from the date you originally opened your Lifetime ISA.

    So much ambiguous information out there around this. No wonder so many providers were scared to sign up...

    Thanks
    Dave
    Last edited by Sussex_Dave; 09-04-2018 at 1:23 PM.
    • eskbanker
    • By eskbanker 9th Apr 18, 1:48 PM
    • 7,878 Posts
    • 8,741 Thanks
    eskbanker
    Not sure I see any ambiguity from all those extracts to be honest, but are you perhaps confusing the requirement for an elapsed year between first LISA opening and purchase with the (separate) bonus payment arrangements?

    Unlike the HTB scheme, LISA bonuses are paid throughout the period the account is held, rather than a one-off claim at the end, although this distinction is less apparent with early adopters, given the lack of LISA bonus payments until the start of 2018/19.

    Anyone paying into a LISA at any time during 2017/18 will receive a bonus within the next few weeks, regardless of when they plan to purchase a property, and anyone starting a LISA now (or continuing to pay into one) will receive a bonus within a few weeks, rather than having to wait until the next tax year.

    I imagine that updating the MSE article was intended to clarify this (planned and announced on day one) change in bonus payment scheduling from annual to monthly.

    However, the rule about a minimum of a year from first opening a LISA to using it for a first-time property purchase continues to apply.
    • Sussex_Dave
    • By Sussex_Dave 9th Apr 18, 2:05 PM
    • 25 Posts
    • 8 Thanks
    Sussex_Dave
    Not sure I see any ambiguity from all those extracts to be honest, but are you perhaps confusing the requirement for an elapsed year between first LISA opening and purchase with the (separate) bonus payment arrangements?

    Unlike the HTB scheme, LISA bonuses are paid throughout the period the account is held, rather than a one-off claim at the end, although this distinction is less apparent with early adopters, given the lack of LISA bonus payments until the start of 2018/19.

    Anyone paying into a LISA at any time during 2017/18 will receive a bonus within the next few weeks, regardless of when they plan to purchase a property, and anyone starting a LISA now (or continuing to pay into one) will receive a bonus within a few weeks, rather than having to wait until the next tax year.

    I imagine that updating the MSE article was intended to clarify this (planned and announced on day one) change in bonus payment scheduling from annual to monthly.

    However, the rule about a minimum of a year from first opening a LISA to using it for a first-time property purchase continues to apply.
    Originally posted by eskbanker
    Thanks. Maybe I am. So in your opinion when I complete mid May 18, then I will not have 25% of my LISA pot subtracted as I first opened a LISA in April 2017.

    When I spoke with Skipton previously they said they honour the Nutmeg April ISA date and on speaking with someone else in Skipton today re the declaration, they advised I would receive a 25% deduction if I draw down for purchase via solicitor before 12 months has past from my Skipton account open date which was in June 17. I then escalated this to a manager who said I wouldn't received the deduction as the 12 month coutn started in April.

    I'm so lost with this which isn't helped by my solicitor having no understanding or processes in place for management of the LISA. I've finally got them to accept responsibility after many emails, phone calls and web links.

    I wasn't planning on buying until the summer but the right house at the right price has come up making understanding this all the more important.
    I just want to make sure I don't lose the bonus as all my HTB ISA pot also sits in the LISA too...

    So anything (HTB transfer, funds paid into LISA) in my Skipton pot including the bonus will be transferred to my solicitor in Mid May without a deduction?
    Last edited by Sussex_Dave; 09-04-2018 at 2:15 PM.
    • eskbanker
    • By eskbanker 9th Apr 18, 2:45 PM
    • 7,878 Posts
    • 8,741 Thanks
    eskbanker
    When I spoke with Skipton previously they said they honour the Nutmeg April ISA date and on speaking with someone else in Skipton today re the declaration, they advised I would receive a 25% deduction if I draw down for purchase via solicitor before 12 months has past from my Skipton account open date which was in June 17. I then escalated this to a manager who said I wouldn't received the deduction as the 12 month coutn started in April.
    Originally posted by Sussex_Dave
    As ever, it's best to rely on what's in writing rather than speaking to multiple employees who may or may not know what they're talking about! https://www.skipton.co.uk/savings/isas/lifetime-isa/faqs clearly states:
    You can instruct your conveyancer to use your Lifetime ISA to buy your first home from 12 months after opening it. If youíve transferred a Lifetime ISA to us, this period starts from the date you originally opened your Lifetime ISA.
    I wasn't planning on buying until the summer but the right house at the right price has come up making understanding this all the more important.
    I just want to make sure I don't lose the bonus as all my HTB ISA pot also sits in the LISA too...

    So anything (HTB transfer, funds paid into LISA) in my Skipton pot including the bonus will be transferred to my solicitor in Mid May without a deduction?
    Originally posted by Sussex_Dave
    The same FAQ page also highlights a (maximum) 30 day lead time from paperwork to settlement, which may be an issue if you're cutting it fine:
    When you come to buy, youíll 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. Itís 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 weíll 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.
    • Sussex_Dave
    • By Sussex_Dave 9th Apr 18, 6:55 PM
    • 25 Posts
    • 8 Thanks
    Sussex_Dave
    As ever, it's best to rely on what's in writing rather than speaking to multiple employees who may or may not know what they're talking about! https://www.skipton.co.uk/savings/isas/lifetime-isa/faqs clearly states:

    The same FAQ page also highlights a (maximum) 30 day lead time from paperwork to settlement, which may be an issue if you're cutting it fine:
    Originally posted by eskbanker
    Thanks for that. I now have a response in writing confirming the count started when the LISA was opened in April 17. They are generally very helpful and quick to respond, but I guess the fine details are sometimes lost in the comms/training. At least they know about the LISA unlike my conveyancer.

    Completion isn't yet finalised so there will be a dependency on the 30 day lead time.

    Thanks again...
    • MG42Maniac
    • By MG42Maniac 11th Apr 18, 1:33 PM
    • 11 Posts
    • 0 Thanks
    MG42Maniac
    Nutmeg Early withdrawl fee
    My partner and I both opened up a LISA with Nutmeg Investments on 29th June 2017. The plan was to purchase a new build house with Bloor Homes in July. However, the property developer wants us to adhere to a 28-day exchange window which means we will need to access the LISA funds early to buy our house and they will not have been in the account for a full 12 months. The estimated completion date is June/Jul. However, the LISA funds would be sent directly to our solicitor and used as a deposit on a house worth £440,000. My understanding was that because it has been less than 12 months we will lose out on the government bonus, but because it's being used for a first time house worth less than £450,000 that we would not face a 25% early exit penalty. We've already had to suffer the loss of the bonus due to a forced early withdrawal so I am hoping we will not lose 25% on our original £4000. I've asked Nutmeg and they keep referring it and cannot give me a straight answer. I kinda see the following three outcomes:

    1) No exit fee - £4000 sent to the solicitor
    2) Fee on original £4000, so £3000 sent to the solicitor
    3) Fee on original £4000 + £1000 bonus so £3750 sent to the solicitor.

    If it is option #2 that would be gutting, it's probably been asked before by someone else but does anyone have a definitive answer? I rang up HMRC and they did not know and gave me the email address for savings audit team but kinda hoping to get an answer sooner as 28-day timer is ticking.
    Last edited by MG42Maniac; 11-04-2018 at 1:36 PM.
    • eskbanker
    • By eskbanker 11th Apr 18, 1:57 PM
    • 7,878 Posts
    • 8,741 Thanks
    eskbanker
    It's option 3 - the penalty for early withdrawal is 25% of the amount withdrawn, which by then will include the bonus.
    • pink_pirlie
    • By pink_pirlie 11th Apr 18, 2:46 PM
    • 186 Posts
    • 117 Thanks
    pink_pirlie
    I sent an email to the savings audit team - you wonít get a reply!

    You will get he bonus even if you withdraw the money before the bonus is paid.

    You will face a penalty of 25% on the total amount you withdraw if it is before the 1 year anniversary.

    Do you need all the money for the exchange deposit or can you just withdraw part of it?

    If you can hold off as long as possible you could draw it down after the 1 year anniversary. You can take it out in multiple withdrawals.
    Or could you borrow money short term?
    • MG42Maniac
    • By MG42Maniac 11th Apr 18, 3:04 PM
    • 11 Posts
    • 0 Thanks
    MG42Maniac
    Thanks for answers. Nutmeg has confirmed the following:
    If I withdraw the funds right now, I will see £3000. (£4000 - 25%)
    If I wait until the bonus is paid, at the end of April, I will see £3750. (£5000-25%)

    I will have to wait until the end of April, I will exceed the 28 days set by Bloor Homes but I am not wasting £1500.
    • pink_pirlie
    • By pink_pirlie 11th Apr 18, 3:21 PM
    • 186 Posts
    • 117 Thanks
    pink_pirlie
    Can you wait until after the anniversary to withdraw the bonus?
    You!!!8217;ll still lose 25% when you withdraw that even if you take the £4000-25% before it is paid.
    • MG42Maniac
    • By MG42Maniac 11th Apr 18, 3:30 PM
    • 11 Posts
    • 0 Thanks
    MG42Maniac
    No, sadly not. I cannot string out Bloor Homes that long. I figured if I wait, it will be the 25% off of the amount with bonus rather than off the amount that is just my hard earned savings. It's not ideal, either way but I feel waiting for the bonus will soften the financial blow.
    • pink_pirlie
    • By pink_pirlie 11th Apr 18, 3:42 PM
    • 186 Posts
    • 117 Thanks
    pink_pirlie
    Financially it makes no difference when you withdraw it before or after the bonus is paid.

    Withdraw £4000 now - get £3000
    Withdraw the bonus once paid - get £750
    Total - £3750


    Withdraw £5000 in full when the bonus is paid - get £3750.

    Either way you lose £250 of your money.

    The only way to avoid that is to wait to withdraw the £1000 bonus after the 1 year anniversary and then you will come out even.
    Withdraw £4000 now - get £3000
    Withdraw £1000 bonus after anniversary - get £1000
    Total - £4000

    If you can get by with leaving as much of the balance as you an until after the anniversary (even if you need to take out some now and pay 25%) then you will minimise the loss.
    • simon430
    • By simon430 12th Apr 18, 10:27 AM
    • 3 Posts
    • 1 Thanks
    simon430
    Anyone else received a letter from Skipton saying their details are incorrect and are unable to claim your bonus?

    Been onto the Skipton Live chat and they said it was sent out by accident, person on the chat said the bonus still should go through, but I'm not convinced.

    Anyone else had this problem?
    • Kreacher
    • By Kreacher 12th Apr 18, 1:08 PM
    • 86 Posts
    • 167 Thanks
    Kreacher
    Anyone else received a letter from Skipton saying their details are incorrect and are unable to claim your bonus?

    Been onto the Skipton Live chat and they said it was sent out by accident, person on the chat said the bonus still should go through, but I'm not convinced.

    Anyone else had this problem?
    Originally posted by simon430
    I had the same thing - saying my details did not match HMRC. I spoke to them on live chat and they told me my details were correct and not to worry.
    Save 12K in 2017 #023 = £1345/ £6000 (22.41%)

    Save 12K in 2016 #110 = £7500/ £6000 (100%)

    20k by April 2018 = £8845/ £20000 (44%)
    • simon430
    • By simon430 12th Apr 18, 1:19 PM
    • 3 Posts
    • 1 Thanks
    simon430
    Hi Kreacher,

    That's what they told me on live chat as well, fingers crossed it gets paid in early May!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,681Posts Today

8,643Users online

Martin's Twitter
  • Ta ta... for now. This August, as I try and do every few yrs, I'm lucky enough to be taking a sabbatical. No work,? https://t.co/Xx4R3eLhFG

  • RT @lethalbrignull: @MartinSLewis I've been sitting here for a good while trying to decide my answer to this, feeling grateful for living i?

  • Early days but currently it's exactly 50 50 in liberality v democracy, with younger people more liberal, older more? https://t.co/YwJr4izuIj

  • Follow Martin