Lifetime ISA

This page includes Skipton's standard documents for use by solicitors or licensed conveyancers.

Lifetime ISA for a First House Purchase

The Lifetime ISA can be used for first home purchase without incurring the 25% government withdrawal charge, as long as the withdrawal occurs at least 12 months after the first payment into the account.

If your client has transferred to us from another Lifetime ISA provider, the 12 months starts from the date of their first payment into the original Lifetime ISA. If your client has transferred into a Lifetime ISA from a different type of ISA, the 12 months begins from the first payment into the Lifetime ISA, not the original ISA.

The purchase price of the property must not exceed £450,000 and the property must be purchased in the UK with a mortgage, but not a Buy to Let mortgage. Your client must occupy the property as their main residence immediately on completion.

You can find more information on gov.uk

Withdrawal for First House Purchase Process

The earliest funds can be withdrawn is 30 days before the completion date. We've explained below the process for withdrawing funds from a Lifetime ISA for first house purchase.

  1. The Lifetime ISA customer signs the Lifetime ISA Investor Declaration requesting the withdrawal and passes this to you.
  2. You complete the Lifetime ISA Conveyancer Declaration, send this to us by email or post along with the Lifetime ISA Investor Declaration. These can be sent by email to lisahousepurchase@skipton.co.uk or sent by post to:
    Customer Delivery
    Skipton Building Society
    Principal Office
    The Bailey
    Skipton
    BD23 1DN.
  3. On receipt of these, we’ll check your credentials and we may call you to confirm the request.
  4. Following confirmation of this, we‘ll get in touch with the customer to tell them we’ve received this request and ask them to confirm their acceptance to authorise the payment of funds directly to you.
  5. On receipt of the customer’s acceptance, we carry out the withdrawal, paying the funds to you.

Forms

Frequently asked questions

We ask for the completion date so that we are able to process and prioritise the withdrawal for a first house purchase request, however if we do not have this, we will release the funds 30 days after we receive the request. If you submitted a request without a completion date and you now know the completion date, please contact us as soon as possible.

No, we can only accept the declaration forms via the post as we require a signature, this must be an original.

If the account is closed, the account would be reinstated and the bonus paid in. We’d record a break in membership of the Society on the system if your client doesn’t have any other accounts with us. We’d then contact your client to confirm we’ve received the bonus and ask what they’d like to do with the bonus amount received. If the bonus has been received after the house purchase has completed they would have to pay the 25% government withdrawal charge if they choose to withdraw the funds before the age of 60 (the only exceptions being terminal illness or death).

The funds must be returned to us within 10 days of the house purchase falling through, and the amount withdrawn will be paid back in to the account. If the first house purchase withdrawal had closed the account, it will be reopened when the funds are returned, but your client’s membership of Skipton will not be backdated (this means there will be a break in membership if this was the only Skipton account they held). If the amount returned is less than the amount withdrawn for the first house purchase, or if the funds aren't returned, your client will be charged a 25% government withdrawal charge on the shortfall amount. To request funds again following the house purchase falling through, we'll need the signed Investor and Conveyancer forms submitting again.

If your client was buying the property with a Skipton mortgage, the Lifetime ISA funds and the delayed completion funds must be returned in separate transactions.

90 days from you receiving the funds from us. If it’s taking longer than 90 days you can write to us to request an extension.

You are able to request withdrawals from the account as many times as your client requires up to completion, there is no minimum withdrawal amount. We’d require completed declarations from both you and your client each time a withdrawal is requested during this process.

The money can only be used for your client's deposit on their first property and it must be purchased with a mortgage (but not a Buy to Let mortgage), on a property with a purchase price of £450,000 or less. Otherwise, the 25% government withdrawal charge would apply.

If both parties are first time buyers, both can use the Lifetime ISA to put towards the purchase of the home without paying a withdrawal charge.

If one party is a first time buyer, but the other has owned a property before then the non-first time buyer will not be able to use their Lifetime ISA (if they’ve opened a Lifetime ISA too) towards the purchase of the home without paying a government withdrawal charge. However, the first time buyer would still be able to use their own Lifetime ISA towards the price of the home that both parties are buying together.

In both cases the price of the home the clients are buying together must not exceed £450,000 if they wish to use a Lifetime ISA towards it without paying a government withdrawal charge.

The purchase price of your client's first home must not exceed £450,000 and the property must be purchased in the UK with a mortgage, but not a Buy to Let mortgage. Your clients must occupy the property as their main residence immediately on completion.

Please note – if the client(s) are a UK Crown employee serving overseas they must intend to reside in the UK and use the property as their main residence in the future.

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