Lifetime ISA withdrawal process
Now that your client is ready to buy their first home, follow these steps to withdraw from their LISA.
Checks
Double-check that your client’s LISA has been open for 12 months. If not, they’ll have to pay a 25% Government withdrawal fee on any money taken out. If your client transferred their LISA to us, their 12 months started when they opened the account with their old provider.
Declaration form
Remind your client to download and complete the investor declaration form and email it to you. We don’t need a copy. It’s just for your records.
Complete the declaration
You must complete the conveyancer declaration form and email it to customer.engagement@thenottingham.com.
Wait for our email
We’ll send you an email to confirm we’ve had the request to withdraw.
Sit back
HMRC guidelines say that once the form has been received, your client’s savings will be released within 30 days. However, it usually takes around two weeks.
Wait is over
Once the savings are released, we’ll email you a reference number so you can easily recognise the money. The savings will then be sent to you.
It’s your job to let us know within 10 days of sales completion that the savings have been used towards your client’s first home purchase. The Government website tells you more about using your LISA to buy your first home.
Frequently asked questions
- It must be your client’s first home in the UK with a mortgage.
- Your client must live in the house after the sale.
- The house price can’t be more than £450,000.
- It can’t be a Buy to Let mortgage.
Two LISAs can be used to buy the same house, but the price of the house can’t be higher than £450,000.
If the sale takes more than 90 days, you must let us know and apply for an extension. If the sale falls through, you’ll need to return the exact money to the LISA. Otherwise, a 25% Government withdrawal fee will need to be paid based on the difference.