Conveyancing in Somerset

If you're planning to use a Lifetime ISA (LISA) to purchase your first home, it's crucial to inform your conveyancer as early as possible. This ensures a smooth property purchase process and proper handling of your LISA funds.

 

Eligibility Criteria

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To use a LISA for a property purchase, you must:

1. Be a first-time buyer who has never owned property anywhere in the world

2. Purchase a property priced £450,000 or less

3. Buy with the aid of a mortgage

4. Intend to live in the property

 

Required Documentation

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To access your LISA funds, you'll need to provide:

1. An Investor Declaration Form (obtained from your LISA provider)

2. A Conveyancer Declaration Form (also from your LISA provider)

 

LISA Fund Release Process

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1. Complete and submit both forms to your LISA provider

2. Once approved, funds will be released to your conveyancer

3. Some providers require a 30-day notice for fund withdrawal

 

Important Timelines

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• Funds can be retained for 90 days after receipt

• If the purchase extends beyond 90 days, request an extension

• If the purchase falls through, funds must be returned to the LISA provider

 

Key Points to Remember

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• You can only use the government bonus from either a LISA or a Help to Buy ISA, not both

• The LISA bonus is paid monthly, allowing use for both exchange deposit and mortgage deposit

• You can save up to £4,000 per year in a LISA, with a 25% government bonus (up to £1,000 annually)

• The LISA limit counts towards your annual ISA allowance (£20,000 for the 2024/25 tax year)

 

Recent Developments

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As of 2025, the Treasury Committee is reviewing the LISA's effectiveness nine years after its introduction. Stay informed about potential changes to the scheme.

For the most up-to-date information, visit the official government guidance for conveyancers on first-time residential purchases with a Lifetime ISA.

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