Bees

Conveyancer's guide: Lifetime ISA withdrawals

02.08.2021

By Beehive Money

Conveyancer Guide

Lifetime ISA withdrawal process

Your client is ready to withdraw from their Lifetime ISA for their first home. Here’s a step-by-step guide to the process
  1. Your client's Lifetime ISA must have been open over 12 months to avoid a 25% Government withdrawal charge. If your client transferred into Beehive Money then the 12 months starts when they opened the account with the previous provider.
  2. Your client will download and complete the Model Investor declaration form and email it on to you. We don't need a copy of this form, it's just for their records.
  3. You, as the conveyancer, should then complete the Model Conveyancer declaration and email it to customer.engagement@thenottingham.com. 
  4. We'll confirm by email that we've had the request to withdraw. 
  5. The savings will be released within a maximum of 30 days of receiving the form as based on the guidelines set by HMRC. But, typically it’s completed within two weeks.
  6. We'll email you, the conveyancer, once the funds have been released and confirm the reference number so the funds can be easily recognised. The savings will then be sent to yourself. 
Within 10 days of sale completion, you, the conveyancer, will let us know the details of your client's property purchase to confirm that their savings have been used to buy their first home. Find out more on GOV.uk about LISA House Purchases.

FAQs

What is the property criteria?

  • The purchase price of the property must not exceed £450,000
  • Your client must be purchasing in the UK with a mortgage but it must not be a Buy to Let mortgage
  • Your client must live in the property immediately upon completion

Can two first-time buyers both use Lifetime ISAs?

Yes, two Lifetime ISAs can be used towards the same house but the maximum property value of £450,000 still applies. 

What if completion is delayed?  

If the property purchase is going to take longer than 90 days then you, the conveyancer, must notify us and can apply for an extension. If the sale falls through and you return less than the amount initially withdrawn, your client will be charged a 25% Government fee on the shortfall amount so they may get back less than they put in.