Lifetime ISAs

Lifetime ISAs are becoming more prominent given that first time buyers are no longer able to open a Help to Buy ISA. This blog is a guide to first time buyers about how to deal with your Lifetime ISA when you are purchasing a property and how to make the transaction as smooth as possible.

During the conveyancing process, you need to ensure that you advise your conveyancer that you have a Lifetime ISA as soon as you are able to do so. Our initial forms ask clients if they have a Lifetime ISA but if your solicitor does not ask the question, you must ensure that you inform them as soon as possible.

When you have instructed a solicitor to act for you in your purchase, you should contact your Lifetime ISA provider and inform them that you have an ongoing purchase and provide them with your solicitor’s details. They will then send over the required forms that your conveyancer will need once a completion date has been agreed, it is best to ensure that these are sent as early as possible to ensure that this does not cause a delay.

Some Lifetime ISA providers will require you to complete a form also and to return this to your conveyancer. You must ensure that you complete the form and return this to your conveyancer. If you are completing the form early in the process, we would recommend leaving the amount required section and the date blank. We will then discuss these details with you once the purchase is ready and a date can be agreed. If you do complete these details, you may be required to complete another form.

Once your purchase is ready to agree a date, your conveyancer will need up to date evidence of the amount in your Lifetime ISA to enable them to complete the form accurately to send to the Lifetime ISA provider.

You should note that if you do not require your conveyancer to withdraw the full amount of your Lifetime ISA and wish to withdraw the funds at a later date then you may be required to repay the bonus paid to you. We would advise you to discuss the matter with your Lifetime ISA provider about what you plan to do with the funds and whether you will have to repay the bonus in those circumstances as there are strict guidelines on the use of the funds.

If you do have any further questions, please contact our conveyancing department who will be happy to assist on 01942 206060.

Written by Sammy-Jo Woodward, Partner – Conveyancing Department.