Ready to withdraw from your Lifetime ISA (LISA) for your first home purchase? Congratulations! There are just a few simple steps you’ll need to go through first that we can help you with. We’ve broken these down below, so you know what to expect when the time is right.
Step 1 - Enter your details 📲
First, you’ll need to send us your solicitor’s contact details in Settings > Withdraw > LISA > Buying first home, as they’re the person we’ll pay your LISA funds to. Before you do this, double-check that your withdrawal request is eligible under these conditions. If you have any questions about your eligibility or the withdrawal process, our Support team will be happy to help. Head in-app to Settings > Help to chat to us, or email support@moneyboxapp.com.
We’d recommend getting in touch about one month before you need to use the funds towards your purchase, as the exact withdrawal timings can vary, depending on a few factors covered below.
When you request your LISA withdrawal, we’ll freeze all further payments into the account within 1 working day. Don’t worry - freezing payments won’t affect your 25% government bonus, so if you have any pending bonuses, they’ll be paid out as usual.
Step 2 - Confirm your solicitor’s details 💼
Next, we’ll send your solicitor a ‘conveyancer declaration’ to sign, confirming that they’re the responsible conveyancer for the purchase and will use your LISA balance for this purpose once paid it's out to them.
You’ll need to tell your solicitor whether you’d like to make a full or partial withdrawal from your LISA. The LISA can also be used for retirement after age 60, so if you’d prefer not to use all of the funds in your account for the purchase of your first home, you can leave some of the balance in the account to save for retirement. In the meantime, we’ll carry out some security checks on your account to verify your request.
Step 3 - We initiate the withdrawal 🚀
Once we have everything we need from your solicitor, and they’ve confirmed they’re authorised to accept your LISA withdrawal, we’ll review the withdrawal request within 5 working days to verify all the details.
Then, if you have a Cash LISA, we’ll time your withdrawal so the money reaches your solicitor in time for the date they have requested the funds by. Once we’ve initiated the withdrawal, it typically completes on the next working day.
If you have a Stocks & Shares LISA, the withdrawal is initiated straight away after the request has been reviewed, and then typically completes within 5 working days. We’ll sell down all of your investments before sending the proceeds to your solicitor as cash. Because of this, your balance may continue to fluctuate until the trades are placed, so the actual amount you receive may be slightly more or less than the amount initially requested.
Step 4 - LISA funds are received 💰
Once your LISA funds have been withdrawn, we’ll send the money to your solicitor. They’ll need to use the funds towards the purchase within 90 days of receiving them, but you can request an extension of up to a further 90 days if needed.
If you have a government bonus pending when your withdrawal takes place, as long as this is paid out by HMRC and can be withdrawn before the completion date of your purchase, you’ll still be able to use the bonus without incurring the 25% government withdrawal penalty. Once the bonus is paid by HMRC, we will process this as a separate withdrawal.
That’s it! Once your solicitor has received the payment from us, your LISA funds will be ready to use to complete your first home purchase. Congratulations! 🎉
Any questions? ❓
We’d be happy to help. Just get in touch with us by heading in-app to Settings > Help to start a chat, or send us an email at support@moneyboxapp.com.