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  • FIRST POST
    • Hackling
    • By Hackling 5th Mar 18, 3:50 PM
    • 7Posts
    • 0Thanks
    Hackling
    Offer accepted on a house
    • #1
    • 5th Mar 18, 3:50 PM
    Offer accepted on a house 5th Mar 18 at 3:50 PM
    We have today had on offer accepted on a house. We didnít think it was likely that we would find a property any time soon so a couple of weeks ago myself and my wife arranged for our help to buy ISAs to be transferred to our Lifetime ISAs.We both opened a Lifetime ISA in June 2017.In order to use our Lifetime ISA bonus would we need to ensure that the purchase does not complete until June 2018?


    Many thanks
Page 1
    • eskbanker
    • By eskbanker 5th Mar 18, 7:05 PM
    • 7,137 Posts
    • 7,562 Thanks
    eskbanker
    • #2
    • 5th Mar 18, 7:05 PM
    • #2
    • 5th Mar 18, 7:05 PM
    Deferring completion until June would work, but if that's not viable then you can benefit from the 25% bonus on the amount in the HTB at transfer, as the HTB provider should have provided closure documents that are valid for HTB claims within 12 months.

    Your conveyancer should be able to fill you in on the details....
    • Alexland
    • By Alexland 5th Mar 18, 7:43 PM
    • 2,388 Posts
    • 1,789 Thanks
    Alexland
    • #3
    • 5th Mar 18, 7:43 PM
    • #3
    • 5th Mar 18, 7:43 PM
    If you are going to use the HTB closure statement to claim a bonus then you might want to withdraw the LISA money before the penalty starts.

    If you are going to buy with a LISA remember to factor in the time it takes the LISA provider to process the withdrawal. A poster asked Skipton how long this would take and they suggested a month however it's not clear if this starts from the expiration of the 12 months.

    Alex
    • Hackling
    • By Hackling 6th Mar 18, 9:04 AM
    • 7 Posts
    • 0 Thanks
    Hackling
    • #4
    • 6th Mar 18, 9:04 AM
    • #4
    • 6th Mar 18, 9:04 AM
    Thank you for your helpful replies. The property that we are purchasing is for £270k so would that mean that we would be unable to use any bonus from the help to buy isa as this is above the £250k limit?

    In terms of the penalty for withdrawing funds from the Lifetime isa - would this penalty apply if the funds are withdrawn before the end of the current tax year or before the period of one year since the Lifetime isa was opened? In our case this is June.

    Many thanks
    • Alexland
    • By Alexland 6th Mar 18, 12:04 PM
    • 2,388 Posts
    • 1,789 Thanks
    Alexland
    • #5
    • 6th Mar 18, 12:04 PM
    • #5
    • 6th Mar 18, 12:04 PM
    The early access penalty applies from the start of the new tax year so if you don't intend to make a qualifying purchase (12 months after the initial LISA deposit) or want to wait until 60 you only have a few weeks to withdraw your money without penalty.
    • Anonymous101
    • By Anonymous101 6th Mar 18, 12:10 PM
    • 1,085 Posts
    • 471 Thanks
    Anonymous101
    • #6
    • 6th Mar 18, 12:10 PM
    • #6
    • 6th Mar 18, 12:10 PM
    There's lots of possible ways around things like this when buying a house. Having the offer accepted is the first step really.

    Firstly the survey's or mortgage application process could flag something up which ends up reducing your purchase price. If that doesn't happen then its worth having a conversation with the vendor to see if you may be able to reduce the purchase price below the limit and possibly purchase some fixtures and fittings for an agreeable figure?

    Buying a house isn't as fixed a process as what most people assume and there's always an element of pragmatism required.
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