When you're ready to buy your first home with your lifetime ISA, we'll send the money directly to your solicitor.
Don't withdraw the money yourself! Even if you intend to use it to buy your first home. You'll be charged the government withdrawal charge if it's not withdrawn by your solicitor.
Here's a step-by-step guide to buying your first home with a lifetime ISA.
- Have an offer on a property accepted
- Hire a conveyancing solicitor and let them know you plan to use a lifetime ISA
- Fill out an Investor Declaration Form and send this to your solicitor
- Ask your solicitor to complete a Conveyancer Declaration Form
- Your lifetime ISA funds will be sent to your solicitor when it's time to complete
Invest in a climate-focused fund with OneFamily's Lifetime ISA
Four steps to buying your first home with a lifetime ISA
A lifetime ISA is a savings or investment account that comes with a government bonus. Every time you pay in, the government adds 25%. You can pay in up to £4,000 each tax year, so there's up to £1,000 in bonus up for grabs every year.
You must use the money in your lifetime ISA to buy your first home or leave it invested until you turn 60, otherwise you'll charged a government withdrawal charge.
When you're ready to buy, there are systems in place to make sure the money in your lifetime ISA goes to the right place.
Step 1: Have an offer on a property accepted
Sounds obvious, but the process of withdrawing money to buy a house can’t start until you’ve had an offer accepted.
Step 2: Hire a conveyancing solicitor
Their role is to make sure all the legal processes go smoothly and that your rights are protected, which includes making sure your lifetime ISA money reaches the seller and HMRC are informed.
You don’t need to worry about moving the money or notifying HMRC yourself.
Step 3: Instruct your solicitor to withdraw your lifetime ISA money
You'll need to let your solicitor know you’ll be using a lifetime ISA to pay some, or all, of your mortgage deposit as soon as you hire them.
- You’ll need to complete an Investor Declaration Form and send this to your solicitor
- Your solicitor will need to complete a Conveyancer Declaration Form
They'll send us both these completed forms and we'll get in touch with you to make sure everything is correct. We'll also contact HMRC to make sure your solicitor is who they say they are, is properly registered and that your account qualifies.
In the meantime, your solicitor will carry out searches and get all the paperwork ready for you to buy the property.
Step 4: We'll send your lifetime ISA money to your solicitor
We'll transfer your conveyancing solicitor the amount you need from your lifetime ISA.
It can take up to six working days for the money to reach your solicitor. Once they've received it, they need to complete the sale within 90 days so they'll usually request it when they know the completion date (the date planned for you to become the property's owner).
Once your sale is complete, your solicitor will let us know the purchase went through and you’re now a homeowner. We'll mark the process as complete on our system and notify HMRC.
You can keep paying money into your lifetime ISA but, remember, you'll be charged a withdrawal charge if you take money out before you turn 60. You won’t be able to use it to buy another property as you’ll no longer be a first-time buyer.
Get up to £1,000 extra towards your first home deposit every year with a OneFamily Lifetime ISA
How do I find a conveyancing solicitor?
You can usually find a solicitor with a simple web search or by asking friends and family for recommendations. Just like with any other service, it's worth comparing prices (which can vary hugely) and looking at reviews before you commit.
Your solicitor should be a member of the Law Society of England and Wales or the Law Society of Scotland, and a member of the Law Society’s Conveyancing Quality Scheme. They must also be a member of the Council for Licensed Conveyancers.
Open a OneFamily Lifetime ISA
Our Lifetime ISA comes with a 25% government bonus, worth up to £1,000 a year!
Our Lifetime ISA invests in stocks and shares, so the value is likely to go up and down over time. This is normal for this type on investment, but it means there is a risk you could get back less than you put in if you withdraw at a time when the value is lower.
