# Lisapilot

Together, £18,150.00 reaches your deposit after £4,850.00 in charges. Sam: 20% charge. Holder 2: 25% charge. Best case: at £450,000 with every withdrawal on/after its 12-month date, £23,000.00 reaches your deposit \(vs £18,150.00 as entered\).

## Key numbers

- Counted purchase price: £475,000.00

- Total charge: £4,850.00

- Reaches your deposit: £18,150.00

- Charge avoided at the cap: £3,600.00

- Best case: at £450,000 with every withdrawal on/after its 12-month date, £23,000.00 reaches your deposit \(vs £18,150.00 as entered\).: £23,000.00

## What this means

- 40% share for £190,000.00 divided by the share fraction gives the full property value.

- Sam: The counted price is over the £450,000 cap. Getting the counted price down £25,000.00 to £450,000 would keep £3,600.00 by avoiding the withdrawal charge \(which can include bonus and growth\).

- Plan for the money to leave the LISA no earlier than 17 Nov 2026. Ask your provider or conveyancer in advance to arrange that withdrawal date.

- Holder 2: Your first payment was less than 12 months ago. Wait until 3 Dec 2026 — then the same withdrawal is 20%, with £1,000.00 charged and £4,000.00 reaching your deposit.

- Plan for the money to leave the LISA no earlier than 17 Nov 2026. Ask your provider or conveyancer in advance to arrange that withdrawal date.

- Only genuine fixtures and fittings bought separately under the contract can be excluded — your conveyancer decides; never inflate them.

- The cap is £450,000 for the full home, including a shared-ownership purchase. Exactly £450,000 is within the cap.

- A 20% charge removes the bonus and its share of growth when the whole balance has received the full bonus. Investment losses or payments without a bonus can mean losing some of your own money. A 25% charge on £5,000 \(£4,000 paid in plus £1,000 bonus\) leaves £3,750.

## Sam — 20% charge

Your counted price of £475,000.00 is over the £450,000 cap, so a 20% charge applies: £3,600.00 of your £18,000.00 goes back, and £14,400.00 reaches your deposit. That covers what you paid in; investment losses and pending bonuses can change this. Getting the counted price down £25,000.00 to £450,000 would keep £3,600.00 by avoiding the withdrawal charge \(which can include bonus and growth\).

| Scenario | Gross | Charge | Net | Rate | Detail |

|---|---:|---:|---:|---:|---|

| As entered | £18,000.00 | £3,600.00 | £14,400.00 | 20% | The counted price is over the £450,000 cap |

| At the old 25% charge | £18,000.00 | £4,500.00 | £13,500.00 | 25% | The 29 Oct change saves you £900.00. |

| At the £450,000 cap | £18,000.00 | £0.00 | £18,000.00 | 0% | Getting the counted price down £25,000.00 to £450,000 would keep £3,600.00 by avoiding the withdrawal charge \(which can include bonus and growth\). |

| Keep it until 60 — illustration | £18,000.00 | £0.00 | £56,135.73 | 0% | Illustration, not a recommendation: 29 whole years of 4% annual growth; no new payments. Extra borrowing £14,400.00 at 4.5% over 25 years. Rates and returns can change. For a partial withdrawal this compares keeping the entire balance with borrowing the planned net withdrawal. Extra mortgage interest £9,611.96; monthly payment £80.04; value at 60 £56,135.73. |

## Holder 2 — 25% charge

Too soon: a withdrawal before 3 Dec 2026 is charged 25%. Wait until 3 Dec 2026 — then the same withdrawal is 20%, with £1,000.00 charged and £4,000.00 reaching your deposit. Your first payment was 3 Dec 2025.

| Scenario | Gross | Charge | Net | Rate | Detail |

|---|---:|---:|---:|---:|---|

| As entered | £5,000.00 | £1,250.00 | £3,750.00 | 25% | Your first payment was less than 12 months ago |

| At the old 25% charge | £5,000.00 | £1,250.00 | £3,750.00 | 25% | A comparison at 25%; this is not a separate eligibility decision. |

| Wait until 3 Dec 2026 | £5,000.00 | £1,000.00 | £4,000.00 | 20% | Wait until 3 Dec 2026 — then the same withdrawal is 20%, with £1,000.00 charged and £4,000.00 reaching your deposit. |

| Keep it until 60 — illustration | £5,000.00 | £0.00 | £15,593.26 | 0% | Illustration, not a recommendation: 29 whole years of 4% annual growth; no new payments. Extra borrowing £3,750.00 at 4.5% over 25 years. Rates and returns can change. For a partial withdrawal this compares keeping the entire balance with borrowing the planned net withdrawal. Extra mortgage interest £2,503.12; monthly payment £20.84; value at 60 £15,593.26. |

## Household totals

- Gross withdrawal: £23,000.00

- Withdrawal charge: £4,850.00

- Net to deposit: £18,150.00

- Bonus lost (entered bonus): £4,600.00

- Own money lost: £250.00

- Charge avoided at the cap: £3,600.00

## What to do and when

1. **30 Oct 2026 — Confirm the counted price with your conveyancer**

   40% share for £190,000.00 divided by the share fraction gives the full property value. The full property value counts, not just your share. Fixtures are ignored for this calculation.

2. **30 Oct 2026 — Tell your conveyancer you&\#39;ll use a Lifetime ISA**

   Complete an investor declaration for each holder and ask for the conveyancer declaration. Money goes to the conveyancer, never to you. Ask your provider how long it needs once it has both declarations.

3. **17 Nov 2026 — Request the withdrawal within the 90-day window**

   Plan for the money to leave the LISA no earlier than 17 Nov 2026 for expected completion on 15 Feb 2027. Arrange this in advance: the date you ask your provider or conveyancer is not the withdrawal date. Providers can take a few days to a few weeks after you ask. The withdrawal date is when money leaves the LISA; it must meet the 12-month rule and determines the 20%/25% date rule. Completion is when the purchase finishes. Aim to request by 16 Jan 2027.

4. **3 Dec 2026 — Holder 2: wait for 12 months**

   The money must not leave the LISA before 3 Dec 2026; ask the provider to release it on or after that date. Wait until 3 Dec 2026 — then the same withdrawal is 20%, with £1,000.00 charged and £4,000.00 reaching your deposit.

5. **28 Jan 2027 — Sam: if completion slips, ask for an extension**

   Based on money leaving the LISA \(withdrawal date\) 30 Oct 2026: initial 90-day deadline 28 Jan 2027. Your conveyancer can ask for 60 more days to 29 Mar 2027, then a further 30 to 28 Apr 2027 \(180 days maximum\). Use the actual receipt date to confirm deadlines. If the purchase fails or the final deadline passes, return all funds, including any charge taken, to the LISA. If £4,000 is not returned, HMRC&\#39;s retrospective charge is £1,333.33, not £1,000.

6. **13 Feb 2027 — Holder 2: if completion slips, ask for an extension**

   Based on money leaving the LISA \(withdrawal date\) 15 Nov 2026: initial 90-day deadline 13 Feb 2027. Your conveyancer can ask for 60 more days to 14 Apr 2027, then a further 30 to 14 May 2027 \(180 days maximum\). Use the actual receipt date to confirm deadlines. If the purchase fails or the final deadline passes, return all funds, including any charge taken, to the LISA. If £4,000 is not returned, HMRC&\#39;s retrospective charge is £1,333.33, not £1,000.

7. **15 Feb 2027 — After buying, your Lifetime ISA can stay open**

   You can save up to £4,000 a year and receive a 25% bonus until 50. Withdrawals are charge-free at 60. Check annual ISA allowances and your provider terms.

8. **6 Apr 2029 — First Time Buyer ISA planned from 6 Apr 2029**

   For new savers: it can be used alongside a Lifetime ISA for the same purchase. Transfers from a Lifetime ISA are not permitted. Announced plans still need legislation and provider implementation.

## Message to your conveyancer or provider

I plan to use a Lifetime ISA towards this purchase. Agreed price: £475,000.00. Counted price: £475,000.00. Basis: 40% share for £190,000.00 divided by the share fraction gives the full property value.
LISA provider: \[add provider\]. Sam: £18,000.00 leaves the Lifetime ISA \(withdrawal date\) on 30 Oct 2026, estimated net £14,400.00. Holder 2: £5,000.00 leaves the Lifetime ISA \(withdrawal date\) on 15 Nov 2026, estimated net £3,750.00.
Expected completion: 15 Feb 2027. Please arrange the investor and conveyancer declarations and confirm payment directly to the conveyancer. I understand a 20% withdrawal charge applies because the price is over £450,000. Please check the conditions currently causing a 25% charge before requesting funds. Please confirm the counted price, provider deadlines and any pending bonus.

## Sources

- [HMRC: Lifetime ISA withdrawals for a first time residential purchase](https://www.gov.uk/guidance/lifetime-isa-withdrawals-for-a-first-time-residential-purchase)

- [HMRC: Making Lifetime ISA withdrawal charges and charge-free withdrawals](https://www.gov.uk/guidance/lifetime-isa-withdrawal-charges-and-charge-free-withdrawals)

- [HMRC: Conveyancers: Lifetime ISA technical guidance](https://www.gov.uk/government/publications/conveyancers-lifetime-isa-technical-guidance/conveyancers-lifetime-isa-technical-guidance)

- [HMRC TIIN, 28 Oct 2026: Reduce Lifetime ISA withdrawal charge for properties over the property price cap](https://www.gov.uk/government/publications/lifetime-isa-withdrawal-charge/reduce-lifetime-isa-withdrawal-charge-for-properties-over-the-property-price-cap)

- [HMRC Tax-free savings newsletter 24 \(Oct 2026\)](https://www.gov.uk/government/publications/tax-free-savings-newsletter-24/tax-free-savings-newsletter-24-october-2026)

- [GOV.UK: Lifetime ISA](https://www.gov.uk/lifetime-isa)

- [MoneySavingExpert: Lifetime ISA Budget news, 28 Oct 2026](https://www.moneysavingexpert.com/news/2026/10/budget-lifetime-isa/)

## Assumptions

- Rules as at 29 Oct 2026, based on the supplied HMRC and GOV.UK guidance and Budget sources.

- The withdrawal date is the day money leaves the Lifetime ISA, not the day you ask your provider or conveyancer, and not completion. The 12-month rule and the 20%/25% date rule use the withdrawal date. Providers can take a few days to a few weeks after you ask. Confirm provider-specific deadlines and completion separately.

- Growth and mortgage figures are illustrations, not forecasts or recommendations. Growth can be negative; future borrowing rates may change.

- Educational tool, not financial advice.

- The same Lifetime ISA rules apply UK-wide, including Scotland, Wales and Northern Ireland.

- Own money lost compares total paid in with this withdrawal’s net amount. For a partial withdrawal it does not account for money remaining in the account. Bonus lost reports the entered bonus received when a charge applies; it is not a precise split of growth or partial withdrawals.

- A failed purchase with all funds returned restores the full withdrawal and any charge taken to the Lifetime ISA; no deposit is funded.

Lisapilot · Daily Ships · Educational tool, not financial advice. UK Lifetime ISA rules as at 29 Oct 2026.