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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 90
    • greenglide
    • By greenglide 13th Sep 18, 9:20 AM
    • 3,194 Posts
    • 2,080 Thanks
    greenglide
    It is the same as the HTB ISA in this respect, isnt it. You have to take out a mortgage, even if it is just 1.
    • Alexland
    • By Alexland 13th Sep 18, 11:48 AM
    • 3,670 Posts
    • 3,005 Thanks
    Alexland
    It is the same as the HTB ISA in this respect, isnt it. You have to take out a mortgage, even if it is just 1.
    Originally posted by greenglide
    Yes although the setup fees on a 1 mortgage if you can find a lender willing to participate would probably outweigh the bonus!
    • ancilla100
    • By ancilla100 2nd Oct 18, 1:52 PM
    • 33 Posts
    • 3 Thanks
    ancilla100
    Hi all,

    I'm new to the forum, but I joined because I have just completed a house purchase and used my LISA so I wanted to share some tips on using the LISA from my own experience to help others in planning their purchase timeline as not many solicitors/conveyancers have come across them yet and finding info on timings can be really tough:

    1) It seems naive, but I was not aware of the paperwork required to release my funds from my LISA to my solicitor without paying the penalty. You can find the two declaration froms on their FAQs section under a sub-section called "First Time Buyer?" (I can't post a link as I'm too new)

    2) This paperwork can be completed up to 30 days before your 12 months are up to enable faster processing. My timeline was really quick, but as I read on another thread, this may be because not many accounts will be ready to withdraw yet...

    3) Here's my timeline but there is one thing to bear in mind: I phoned and chased Skipton and their lovely customer service team almost daily. I can only say good things about their customer service and would highly recommend them.

    24/06/2018 Date forms given to solicitors (dropped through letterbox)
    25/06/2018 Date sent to Skipton first class post (confirmed via email from solicitors)
    26/06/2018 Date Skipton received forms (confirmed through phone call to customer services)
    02/07/2018 Called Skipton helpdesk for an update
    03/07/2018 Called Skipton helpdesk for an update
    04/07/2018 Form received via email 10:09
    04/07/2018 Form signed electronically and returned via email - confirmation received 10:13
    04/07/2018 Email from Skipton confirming transaction of funds 15:34
    04/07/2018 Email from solicitors confirming receipt 16:29
    06/07/2018 Completion date

    4) Once you complete, your conveyancer or solicitor must send off proof of completion to ensure you don't pay a penalty.

    I really hope this helps anyone who is looking to buy their first home and thanks again to all of Skipton's customer service team for their exceptional response times and professionalism. I felt so awful chasing every day, but I'm glad that it worked out.

    Good luck first time buyers!
    Originally posted by AbbiP
    Thanks so much for posting this. I was looking for something similar last night as I started to panic about things so I thought I'd share my timeline as well for people.

    21/09/2018 Date forms given to solicitors (emailed a scanned copy)
    21/09/2018 Date sent to Skipton
    02/10/2018 Form received via email 11:46
    02/10/2018 Form signed electronically and returned via email 11:49- confirmation received
    03/10/2018 Email from Skipton confirming transaction of funds 16:14
    03/10/2018 Forwarded Skipton email to solicitor and asked for confirmation of receipt 16:45
    04/10/2018 Email from solicitors confirming receipt 09:42

    Please note that I didn't chase Skipton at all during this process. I'll update this as soon as the other steps have happened.
    Last edited by ancilla100; 04-10-2018 at 3:42 PM.
    • masonic
    • By masonic 29th Oct 18, 7:52 PM
    • 10,141 Posts
    • 7,432 Thanks
    masonic
    It seems those using a LISA can breathe a sigh of relief, there seem to be no plans in the budget to axe them just yet.
    • Ed-1
    • By Ed-1 29th Oct 18, 7:55 PM
    • 2,414 Posts
    • 1,258 Thanks
    Ed-1
    It seems those using a LISA can breathe a sigh of relief, there seem to be no plans in the budget to axe them just yet.
    Originally posted by masonic
    https://www.yourmoney.com/mortgages/lifetime-isa-set-stay-government-rejects-abolishment-calls
    • Mcfaggen
    • By Mcfaggen 31st Oct 18, 11:21 AM
    • 2 Posts
    • 0 Thanks
    Mcfaggen
    We have just exchanged contracts on our home buy and we're both using HTB ISA's to make it happen.

    Am I still eligible (I'm under 40) to take out a LISA for 'retirement' savings?
    • eskbanker
    • By eskbanker 31st Oct 18, 11:36 AM
    • 8,452 Posts
    • 9,578 Thanks
    eskbanker
    We have just exchanged contracts on our home buy and we're both using HTB ISA's to make it happen.

    Am I still eligible (I'm under 40) to take out a LISA for 'retirement' savings?
    Originally posted by Mcfaggen
    In a word, yes.

    Since you wouldn't have (penalty-free) access until you're 60, it would be worth considering using the S&S variant for growth over that long term rather than a cash-based product that would be unlikely to keep pace with inflation....
    • Mcfaggen
    • By Mcfaggen 31st Oct 18, 12:12 PM
    • 2 Posts
    • 0 Thanks
    Mcfaggen
    Thanks eskbanker.

    Agree on a S&S portion, but I'm a fairly risk adverse sort... so would likely do a mix between the two perhaps one year S&S, one year Cash, etc. Appreciate this may not be the path to maximum benefit, but fits with my approach.
    • Alexland
    • By Alexland 31st Oct 18, 12:16 PM
    • 3,670 Posts
    • 3,005 Thanks
    Alexland
    Agree on a S&S portion, but I'm a fairly risk adverse sort... so would likely do a mix between the two perhaps one year S&S, one year Cash, etc. Appreciate this may not be the path to maximum benefit, but fits with my approach.
    Originally posted by Mcfaggen
    Most people will have a portfolio that mixes shares with bonds (fixed income) to control volatility and mixed asset funds do this automatically for you. You can hold these types of funds in a S&S Lifetime ISA. Anything above balanced risk (circa 60% shares, 40% bonds) should stand a good long term prospect of beating inflation after fees with a few ups/downs along the way. If saving for retirement you shouldn't need a Cash Lifetime ISA account.

    My view is that Hargreaves Lansdown and AJ Bell YouInvest are the best in the LISA platform market and the choice should be based on lowest cost which will depend on the size and frequency of your contributions. Generally HL are better for small frequent contributions and AJ Bell are best for larger lump sums.

    In terms of funds consider Vanguard LifeStrategy, Blackrock Consensus (discounted on HL) and HSBC Global Strategy which are all very similar low cost mixed asset funds and each offer a range of increasing risk/reward profiles.

    https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds

    Alex
    Last edited by Alexland; 31-10-2018 at 12:33 PM.
    • vdo0x1
    • By vdo0x1 31st Oct 18, 3:40 PM
    • 1 Posts
    • 0 Thanks
    vdo0x1
    Hi all,

    My partner and I want to open a LISA each to save for a family home within the next few years.

    I've had a skim through this very useful thread and have some questions, I hope it's OK to ask here.

    1. Would it make the buying process easier or more complicated to get LISAs from different providers?

    2. Seeing as interest accrues monthly, am I right in saying it would be best to pay in as much as possible and as soon as possible until the 4k yearly cap is reached?
    So if I put in 4k in November 2018, am I not allowed to put in any more until November 2019 or does the term refresh with the financial year in April? We're quite certain we can put in the full amount in at the first opportunity every year.

    3. We are considering Skipton and Nutmeg. We looked at Newcastle BS too, but they don't have any local branches. Any personal experiences and thoughts welcome.

    4. Specifically with Nutmeg: if it performs badly, can it eat into the government bonus too? I'm trying to understand the risk involved with a stocks & shares approach. Our risk appetite is quite low.
    The interest is basically negligible at around 1% with the other providers so we're prepared to risk getting no interest if it means we might potentially get more, but we don't want to risk the government bonus - that's what we're in this for really, not the rubbish interest rates.

    Thanks in advance.
    • Alexland
    • By Alexland 31st Oct 18, 4:28 PM
    • 3,670 Posts
    • 3,005 Thanks
    Alexland
    It really depends how long you think it will be until you buy a property. S&S investements are not suitable for time periods of less than 5 years as the probability of suffering a loss bigger than any accumulated gains is unacceptably high. For anything less than 5 years stick to cash unless you just want to take a gamble. Some providers, acting in self interest to get a new customer, say 3 years but frankly that's a bit irresponsible of them.

    With a LISA the contributions are added into the account a few weeks after each contribution so if they were also invested (as they would be automatically with Nutmeg) then they could also suffer loss.

    If you are sticking with a Cash LISA there is no need to use with multiple providers (as cash products have FSCS protection up to 85k) just go for the best interest rate. As a couple having different providers is fine but it doesn't make anything easier.

    If you add 4k in November you can add another 4k from the start of each tax year on 6th April.

    You may find holding the money elsewhere until towards the end of the tax year generates more interest. However don't leave it too tight incase your contribution is unexpectedly rejected or your provider has problem verifying your identiy, bank account, etc.

    Remember the LISA accounts need to be open at least 12 months from their initial contribution before they can be used to buy a property without penalty so getting the clock started is important.

    Alex.
    Last edited by Alexland; 31-10-2018 at 4:38 PM.
    • jp066
    • By jp066 10th Nov 18, 9:37 AM
    • 4 Posts
    • 1 Thanks
    jp066
    Hi,

    Has anyone used their Skipton Lifetime ISA for a house purchase recently?

    We are currently coming up to the point of exchange and the declarations have been sent off to Skipton. I have spoken to them to confirm whether they have received it which they have and have asked when to expect the money to be transferred to our solicitors. They have said that they will transfer it on the completion date that was written on conveyancer declaration, however I was of the understanding that it will be within 30 days of the form being received and I need it transferred ready for exchange of contracts. Surely they need to make sure its with our solicitors before the completion date written on the form so we can exchange beforehand.

    Can anyone shed any light on this?
    • jp066
    • By jp066 10th Nov 18, 10:17 AM
    • 4 Posts
    • 1 Thanks
    jp066
    Further to what I've said above, seems it depends who you speak to, but I spoke to another person at Skipton this morning that has said they have fast tracked our application for us and will have it sent through to our solicitors by Friday.

    There is a 'completion date' section on the conveyancers decelerations form and Skipton aim to have the money sent to the solicitors with 2 days of that date. However if you are required to pay your deposit at exchange (which I assumed all transactions required?) you'd need to let them know.

    I'll post a full timeline of our process once I know they have received our deposit to give people an idea of how long this takes, as I could only see two examples in this thread as these ISAs are still pretty new.
    • Alexland
    • By Alexland 10th Nov 18, 1:03 PM
    • 3,670 Posts
    • 3,005 Thanks
    Alexland
    However if you are required to pay your deposit at exchange (which I assumed all transactions required?) you'd need to let them know.
    Originally posted by jp066
    Sometimes no exchange deposit is required for example if you exchange and complete on the same day. Others might fund their exchange deposit from other savings and use the LISA at completion.

    Alex
    • jp066
    • By jp066 14th Nov 18, 6:37 PM
    • 4 Posts
    • 1 Thanks
    jp066
    So ours:

    05/11 - Declarations sent to Skipton
    07/11 - Skipton received declarations
    12/11 - Documents digitally signed and returned
    14/11 - Money transferred from our ISAs to solicitors

    Very quick turn around from Skipton, which has helped us greatly.
    • Alexland
    • By Alexland 14th Nov 18, 6:57 PM
    • 3,670 Posts
    • 3,005 Thanks
    Alexland
    Thanks I think the Skipton guidance of planning for 30 days includes some padding for the cases where there are unexpected issues or errors. Glad to hear your withdrawal went smoothly.
    • justinmk
    • By justinmk 16th Nov 18, 1:48 PM
    • 1 Posts
    • 1 Thanks
    justinmk
    Hi all,


    We're getting close to completing on our house purchase using mine and my partner's Skipton LISA.


    I've had the bill from the solicitors and they are charging a total of 150 for LISA admin.


    I was thinking there was a limit on solicitor's fees of 50 per person with the Lifetime ISA but after having a search around conveyancer technical guidance I couldn't see any mention of it.


    Is anyone aware of limit's on solicitor's fees for Lifetime ISA withdrawals?






    Thanks in advance for your help and hopefully this will clarify for others too




    Justin
    • Alexland
    • By Alexland 16th Nov 18, 3:09 PM
    • 3,670 Posts
    • 3,005 Thanks
    Alexland
    There is no limit on solicitor costs for LISA withdrawals but under the HTB ISA it was capped at 50+vat. At 75 (inc vat?) per LISA your solicitor sounds a bit more expensive. Did you tell them you were using LISAs before they generated their initial quote for the work? If so you shouldn't be charged more than you agreed.

    Alex
    • Glynino
    • By Glynino 19th Nov 18, 7:13 PM
    • 1 Posts
    • 0 Thanks
    Glynino
    I transferred my Help to Buy ISA into a LISA because living in Surrey I would likely be buying a property above the Help to Buy threshold. The opportunity to buy a property came up sooner than anticipated but because I had not had the LISA for over a year, I had to pay back the interest and a penalty fee. What was left was used towards a deposit on a flat. Is there any way I can recover the interest as the money was initially held in a Help to Buy ISA?
    • masonic
    • By masonic 19th Nov 18, 8:12 PM
    • 10,141 Posts
    • 7,432 Thanks
    masonic
    I transferred my Help to Buy ISA into a LISA because living in Surrey I would likely be buying a property above the Help to Buy threshold. The opportunity to buy a property came up sooner than anticipated but because I had not had the LISA for over a year, I had to pay back the interest and a penalty fee. What was left was used towards a deposit on a flat. Is there any way I can recover the interest as the money was initially held in a Help to Buy ISA?
    Originally posted by Glynino
    There is a single charge of 25% of the amount withdrawn when you make a withdrawal from a LISA. This cancels out the 25% bonus and leaves an additional charge of 6.25% on the balance withdrawn (including interest). So it is just part of the penalty fee.
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