What can Lifetime ISA funds be used for?
LISA funds must be used directly towards the purchase price of the property. They can be used towards the exchange deposit, for the funds payable upon completion, or in-part for both.
Please note, HMRC put the onus on the conveyancer to ensure that the property purchase completes within 90 days of the withdrawal. If the purchase does not complete within 90 days then the conveyancer must either request an extension (of up to an additional 90 days) or return the funds to Moneybox in full.
Failure to do so could result in the customer being charged the 25% withdrawal penalty by HMRC, so please consider this when using LISA funds for non-refundable exchange deposits.
LISA funds cannot be used towards other expenses such as stamp duty, solicitors fees, mortgage payments, home furnishings etc. Any unused funds must be returned to the LISA, and should not be transferred directly to the customer under any circumstances.