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  • 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 88
    • belfast_gal
    • By belfast_gal 6th Aug 18, 5:08 PM
    • 13 Posts
    • 3 Thanks
    belfast_gal
    Tell them to transfer it to your new provider and make AJ Bell aware. No point paying a withdrawal charge if your intent was to use this money towards retirement.

    Alex
    Originally posted by Alexland
    Thanks Alex, I have emailed them back to request that. Seemed odd that they didn't offer it as an option though.
    • Alexland
    • By Alexland 6th Aug 18, 8:15 PM
    • 3,365 Posts
    • 2,695 Thanks
    Alexland
    Thanks Alex, I have emailed them back to request that. Seemed odd that they didn't offer it as an option though.
    Originally posted by belfast_gal
    It should have been their default option. Send a message to AJ Bell to let them know your wishes.

    Alex.
    • Eponym
    • By Eponym 7th Aug 18, 12:49 PM
    • 287 Posts
    • 208 Thanks
    Eponym
    Hi all

    I have a S&S ISA with Charles Stanley Direct, currently worth a little over 9k, to which I contribute 125pm. No prospect of that increasing significantly in the near-medium future. The ISA is for additional money in retirement (30+ years away - I have a Civil Service pension so don't feel the need to add to that but want my own money which can't be impacted by Government decisions and future Government financial straights).

    I am looking at transferring to a S&S LISA with AJ Bell. The 1.50 monthly trading cost would be more than countered by the Government bonus for as long as that continues, assuming they don't now decide to scrap the whole thing!

    As my existing S&S ISA is worth more than the 4000 annual LISA limit, am I right in thinking that I cannot transfer it as such (not sure if they do partial transfers as I can't find any mention of it on AJ Bell's website). That would mean I would need to sell 4000 worth each year for a couple of years and withdraw it as cash, then invest it in AJ Bell. Unless I am missing something? Obviously I could just halt payments to the S&S ISA and use new money for the LISA, but I won't get close to the full 4k so that doesn't seem to make sense as any cost would surely be less than the bonus I would get for the full amount.

    Am I missing anything?
    • Zorillo
    • By Zorillo 7th Aug 18, 12:57 PM
    • 391 Posts
    • 241 Thanks
    Zorillo
    I wouldn't invest monthly, I'd let the 125 accrue outside of a LISA until nearly the end of the tax year and then dump it all in in one go.

    As far as I know you can't transfer into a LISA from a S&S ISA so yes you'd need to sell and invest the proceeds.
    • Alexland
    • By Alexland 7th Aug 18, 1:11 PM
    • 3,365 Posts
    • 2,695 Thanks
    Alexland
    If you don't need access to any of this money until age 60 then withdrawing up to 4k per tax year from your S&S ISA to LISA wrap makes sense as then it's just two 1.50 transactions a year (one for the lump sum and another for the bonus).

    Personally I would keep making the regular trades in the S&S ISA for now using it as a staging area to avoid regular trade fees and messing around with tiny monthly bonuses.

    This approach will waste some of your 20k annual ISA allowance but it doesn't sound like you are using much anyway.

    Ps if you are a higher rate taxpayer additional pension contributions might be more efficient than a LISA.

    Alex
    • eskbanker
    • By eskbanker 7th Aug 18, 1:15 PM
    • 8,200 Posts
    • 9,195 Thanks
    eskbanker
    As far as I know you can't transfer into a LISA from a S&S ISA so yes you'd need to sell and invest the proceeds.
    Originally posted by Zorillo
    You can transfer from a S&S ISA into a LISA, and AJ Bell accept such transfers, as per https://www.youinvest.co.uk/lifetime-isa/transferring-into-a-lifetime-isa

    Having said that, the transfer does need to be via cash rather than in specie, but can be done within the ISA shelter rather than literally selling and withdrawing the proceeds from the S&S ISA, although as the poster isn't using much of the annual 20K ISA allowance this is largely moot....
    • 120084
    • By 120084 7th Aug 18, 1:37 PM
    • 1 Posts
    • 0 Thanks
    120084
    Hi I wonder if anyone can help. I opened a Lifetime ISA with Skipton and deposited 4000, I would like to know if the LISA can be used with other government housing schemes i.e. Right to Buy? Within the government guidance it states it can be used towards the purchase of a Shared Ownership Scheme on the basis that the criteria is met for both but I cannot find any information on using a LISA towards Right to Buy?

    I am aware the Right to Buy Scheme is not a favourable topic amongst some MSE users as read within other forums. Would appreciated any useful advice or links to where I can find out.

    Thanks
    • Eponym
    • By Eponym 7th Aug 18, 1:54 PM
    • 287 Posts
    • 208 Thanks
    Eponym
    If you don't need access to any of this money until age 60 then withdrawing up to 4k per tax year from your S&S ISA to LISA wrap makes sense as then it's just two 1.50 transactions a year (one for the lump sum and another for the bonus).

    Personally I would keep making the regular trades in the S&S ISA for now using it as a staging area to avoid regular trade fees and messing around with tiny monthly bonuses.

    This approach will waste some of your 20k annual ISA allowance but it doesn't sound like you are using much anyway.

    Ps if you are a higher rate taxpayer additional pension contributions might be more efficient than a LISA.

    Alex
    Originally posted by Alexland
    Thanks all for the comments. I hadn't thought about making the contributions to Charles Stanley in the long term and just transferring over the 4k at the end of the tax year. That sounds like a good idea as it will minimise the trading costs - though obviously they are pretty minor in any case.

    I'm a basic rate taxpayer so I don't think a seperate pension is the way to go for me.
    • Alexland
    • By Alexland 7th Aug 18, 2:15 PM
    • 3,365 Posts
    • 2,695 Thanks
    Alexland
    Hi I wonder if anyone can help. I opened a Lifetime ISA with Skipton and deposited 4000, I would like to know if the LISA can be used with other government housing schemes i.e. Right to Buy? Within the government guidance it states it can be used towards the purchase of a Shared Ownership Scheme on the basis that the criteria is met for both but I cannot find any information on using a LISA towards Right to Buy?
    Originally posted by 120084
    Yes as long as you meet all the other requirements of the LISA then it is compatible Right To Buy. This is mentioned on the MSE official guide which is worth reading:

    https://www.moneysavingexpert.com/savings/lifetime-ISAs/

    Alex
    • Alexland
    • By Alexland 7th Aug 18, 2:18 PM
    • 3,365 Posts
    • 2,695 Thanks
    Alexland
    Thanks all for the comments. I hadn't thought about making the contributions to Charles Stanley in the long term and just transferring over the 4k at the end of the tax year. That sounds like a good idea as it will minimise the trading costs - though obviously they are pretty minor in any case.
    Originally posted by Eponym
    It depends how efficiently you scheduled the trades but the worst case if investing the contribution and later bonus would be 24 x 1.50 per year - ouch! I guess there's always the risk the market might move in the few days between transferring the money. Don't leave it too late in the tax year incase there are any unexpected problems. I would do one now and another at the start of next tax year to get the bonus investment growth started. Remember to leave enough cash in the account to comfortably (assuming some investment growth) pay the platform fees until you can next contribute.

    Alex
    Last edited by Alexland; 07-08-2018 at 2:32 PM.
    • belfast_gal
    • By belfast_gal 7th Aug 18, 6:18 PM
    • 13 Posts
    • 3 Thanks
    belfast_gal
    It should have been their default option. Send a message to AJ Bell to let them know your wishes.

    Alex.
    Originally posted by Alexland
    Cheers Alex, I got a response from Skipton today apologising for the confusion and saying that they'll transfer it to AJ Bell. I've sent a secure message to AJ Bell too letting them know.
    • Alexland
    • By Alexland 7th Aug 18, 8:33 PM
    • 3,365 Posts
    • 2,695 Thanks
    Alexland
    HL have finally replied to say they are thinking about the problem. This is so painful I can see why they have stopped accepting LISA transfers.
    Originally posted by Alexland
    Woo, HL fixed my wife's LISA today so that's now 1k into each this tax year. Have a regular saver maturing soon and with a couple of months pay that should be all done for this tax year so I can spend the latter part of the year feeding the S&S ISAs.

    Alex
    • sully1311
    • By sully1311 16th Aug 18, 4:36 AM
    • 81 Posts
    • 26 Thanks
    sully1311
    Skipton Lifetime ISA now at 1.00% interest.
    • Mattmuzz
    • By Mattmuzz 16th Aug 18, 1:26 PM
    • 18 Posts
    • 3 Thanks
    Mattmuzz
    Funds release time
    Hi all,

    Does anybody know how long it takes Skipton to release the funds to my solicitor once all the forms are filled out?
    • eskbanker
    • By eskbanker 16th Aug 18, 1:34 PM
    • 8,200 Posts
    • 9,195 Thanks
    eskbanker
    Does anybody know how long it takes Skipton to release the funds to my solicitor once all the forms are filled out?
    Originally posted by Mattmuzz
    The published service level (at https://www.skipton.co.uk/mortgages/first-time-buyers/using-your-lifetime-isa) is up to 30 days but anecdotally I'm pretty sure that others have reported it actually being quicker than that.

    Edit: quicker timescale reported in post #1691 above....
    Last edited by eskbanker; 16-08-2018 at 1:37 PM. Reason: Added previous post info
    • Ogordo
    • By Ogordo 17th Aug 18, 7:42 PM
    • 8 Posts
    • 3 Thanks
    Ogordo
    So I'd be really grateful if I could pick the minds of you all in here.

    I have the opportunity to move in with my partner who owns their property. In the future there may be an opportunity to put myself on the house and contributing to the mortgage equally if it works out.

    Now, I know of LISA's but have little knowledge of property and mortgage. I've seen the graphic on the main LISA page about one person could contribute and the one person who has already bought can't. This is where I'm quite stuck.

    Would a LISA be a good way of saving up money to put towards a potential investment in that property.

    If anyone could point me in the direction of the relevant rules I'd be very grateful.
    • eskbanker
    • By eskbanker 17th Aug 18, 7:49 PM
    • 8,200 Posts
    • 9,195 Thanks
    eskbanker
    The rules allow it, yes, as long as you're actually purchasing your first property and meet all the rest of the scheme rules. If it's a property that your partner already owns then you'd need to go through a properly-conveyanced sale and repurchase arrangement as well as a (re)mortgage.
    • Alexland
    • By Alexland 17th Aug 18, 8:17 PM
    • 3,365 Posts
    • 2,695 Thanks
    Alexland
    The rules allow it, yes, as long as you're actually purchasing your first property and meet all the rest of the scheme rules. If it's a property that your partner already owns then you'd need to go through a properly-conveyanced sale and repurchase arrangement as well as a (re)mortgage.
    Originally posted by eskbanker
    However in practice the costs of performing this transaction properly may outweigh the benefits so it's more realistic that the LISA would be useful if jointly buying a bigger or better property in future.

    Alex
    • Ogordo
    • By Ogordo 18th Aug 18, 8:32 AM
    • 8 Posts
    • 3 Thanks
    Ogordo
    Many thanks for your comments. Makes sense.
    • Alexland
    • By Alexland 18th Aug 18, 8:57 AM
    • 3,365 Posts
    • 2,695 Thanks
    Alexland
    Sorry I probably should have said 'remembering the 450k price cap' which may or may not be an issue on the next property depending on where you are buying.
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