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  • FIRST POST
    • Steak_boy_19
    • By Steak_boy_19 5th Jan 18, 8:50 PM
    • 1Posts
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    Steak_boy_19
    Open a HTB LISA for FTBuyer and home owner partner
    • #1
    • 5th Jan 18, 8:50 PM
    Open a HTB LISA for FTBuyer and home owner partner 5th Jan 18 at 8:50 PM
    Hello,

    Looking for some advice as im confused!!

    I already own a own but in the future (2/3 years) will probably want to buy a bigger home with my partner who has never owned a property.

    She is looking at opening a LISA or a Help to Buy but am confused as to which one.

    My thoughts were for her to open up a help to buy now with 200 and save the 200 a month (this would be the maximum my partner could afford).

    Then further down the line when we are say approximately a year off from wanting to buy a new home together opening a LISA with 1 to get the 'clock ticking'. Meanwhile i have my own separate saving account saving what ever i can (this will vary month to month). Just before we're ready to purchase a new home my partner transfers her Help to buy into the LISA and i also give whatever I have to top it up (i know there is a maximum of 4K). I thought this seemed logical but i have seen a video with MSE explaining you have to transfer the HTB into the LISA within a year, this has now confused me. And questioned my original thoughts.

    Any help, advise, tips or alike would be much appreciated!

    Thanks,
    First time poster
Page 1
    • Owen1991
    • By Owen1991 5th Jan 18, 8:59 PM
    • 51 Posts
    • 94 Thanks
    Owen1991
    • #2
    • 5th Jan 18, 8:59 PM
    • #2
    • 5th Jan 18, 8:59 PM
    The simpler option would just be to go for the LISA now, S&S or Cash depending on what she wants.
    12k in 2018 - 6450/12000 ~ #101 | Sealed Pot Challenge 2018 ~ #44
    13750 in Lifetime ISA
    • Alexland
    • By Alexland 5th Jan 18, 9:48 PM
    • 2,545 Posts
    • 1,928 Thanks
    Alexland
    • #3
    • 5th Jan 18, 9:48 PM
    • #3
    • 5th Jan 18, 9:48 PM
    Welcome to the fourm, you can only transfer a HTB to a LISA this tax year and Skipton need to received the transfer paperwork by the 1st March 2018 deadline. Still you could withdraw the cash from the HTB to contribute to the LISA provided you stick within the annual limits.

    If your partner is buying into a bigger house will they exceed the HTB or higher LISA property price limits?

    Alex
    • AirlieBird
    • By AirlieBird 6th Jan 18, 6:41 AM
    • 1,037 Posts
    • 846 Thanks
    AirlieBird
    • #4
    • 6th Jan 18, 6:41 AM
    • #4
    • 6th Jan 18, 6:41 AM
    you can only transfer a HTB to a LISA this tax year
    Originally posted by Alexland
    Not strictly correct. Up to 5 April 2018 you can transfer a HTB to a LISA without it counting towards your LISA allowance. From 6 April 2018 you can still transfer a HTB to a LISA but it will count as part of the 4,000 annual LISA allowance.
    • Alexland
    • By Alexland 6th Jan 18, 9:49 AM
    • 2,545 Posts
    • 1,928 Thanks
    Alexland
    • #5
    • 6th Jan 18, 9:49 AM
    • #5
    • 6th Jan 18, 9:49 AM
    Sorry yes as it would count towards the 4k LISA limit so a transfer next tax year would be similar as withdrawal and contribution as cash.

    I guess the only benefit would be that as it is already in an ISA wrapper it shouldn't count towards the annual 20k limit. So next tax year you could transfer a 2k HTB from this tax year, add a further 2k to get to the LISA limit then add a further 18k into another ISA to get to the 20k limit.
    Last edited by Alexland; 06-01-2018 at 9:55 AM.
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