Bees

How do I withdraw from my Lifetime ISA?

02.08.2021

By Beehive Money

45

Using your Lifetime ISA to buy your first home

You’ve worked hard to save your deposit into your Lifetime ISA but what next? You should already have your mortgage offer and everything else in the mortgage application process sorted. Here’s ten steps to using your savings to buy your first home.

  1. When you think you're ready to buy, check that your Lifetime ISA has been open over 12 months. If you've transferred into Beehive Money then your 12 months starts when you opened the account with your previous provider.
  2. Log into your Beehive Money account and take a note of the exact amount of funds to be taken out of your account for your house deposit, you'll need this for the next step. 
  3. If you need any statements you can download these onto your device from the app. Ask BeeBot in the app for help if you get stuck and there's a Knowledge Article with a step by step guide. 
  4. Download and complete the Model Investor declaration form and email it onto your conveyancer. We don't need a copy of this form, it's just for their records.
  5. Your conveyancer should then complete the Model Conveyancer declaration and email it to customer.engagement@thenottingham.com. 
  6. We'll confirm by email that we've had your request to withdraw. 
  7. Your 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.
  8. We'll send an email to your conveyancer once the funds have been released and confirm the reference number so the funds can be easily recognised. 
  9. Within 10 days of sale completion, your conveyancer will let us know the details of your house purchase to confirm that your savings have been used to buy your first home.
  10. Your Lifetime ISA will remain open, and you can continue to save into it for your retirement if you’d like to as you’ll still benefit from the Government bonus.

FAQs

Can I use my Lifetime ISA with another first-time buyer?

Yes, you can use your Lifetime ISA with another first-time buyer who also has a Lifetime ISA but this isn't compulsory. If you both have a Lifetime ISA, the maximum property value of £450,000 still applies. 

What if my completion is delayed?  

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 If your conveyancer returns less than the amount initially withdrawn, you’ll be charged a 25% Government fee on the shortfall amount so you may get back less than you put in.

Will I get charged for withdrawing my savings? 

If you need to withdraw money from your LISA that you’re not putting towards your first home, or before you reach the age of 60, you’ll be liable to pay a 25% Government withdrawal fee which means you could get back less than you paid in. You won’t incur a fee if you’re using the funds to buy your first home and you've had a Lifetime ISA account for over 12 months.