Helping savers understand Lifetime ISAs

The information below is to help you better understand your Lifetime ISA.

Am I eligible for a Lifetime ISA?

To qualify for a Lifetime ISA, you must be a UK resident aged 18 to 39. However, once your ISA has been opened you can continue to add money until your 50^th birthday.

Who is classed as a first-time buyer?

A first-time buyer is someone who has never owned a property before, including a home outside of the UK. If you've inherited a property, or owned a share of one, you will not be classed as a first-time buyer.

What if I need access to the money in my Lifetime ISA?

You can withdraw money penalty-free, under the following circumstances:

• When you're ready to buy your first home (as long as your account has been active for 12 months. If you are transferring your Lifetime ISA to us this is the date you first funded your Lifetime ISA with your existing provider)
• When you reach 60 years old 
• If you are diagnosed with a terminal illness and have less than a year to live or in the event of your death.

Unless your withdrawal is for these reasons, other withdrawals made from your Lifetime ISA between now and Monday 5th April 2021 will incur a 20% Government withdrawal charge. After Monday 5th April 2021 you'll be charged 25% Government charge to withdraw money for reasons other than buying your first home, unless you're aged 60 or over which means you could get back less than you paid in.

To put things into context, withdrawing £2,000 up to 5^th April 2021 will incur a penalty of £400. A £2,000 withdrawal after 5^th April 2021 will incur a £500 penalty. You may get back less than you put in if you request an ineligible withdrawal.

Account sort code

When you transfer money into your Lifetime ISA you will need your account number and a sort code. Your account number will be individual to you. The sort code is: 60-95-93.

Applying for a Lifetime ISA

Can I have multiple Lifetime ISAs?

Yes, you can have multiple Lifetime ISAs. However, you can only pay into one account during the same financial year (April 6^th - April 5^th).

I already have a Cash ISA - Can I apply for a Lifetime ISA?

Yes, you can. Even if you have a Cash ISA, you can apply for a Lifetime ISA. Combined, however, you cannot deposit more than £20,000 into your various ISAs per tax year (this is called your annual ISA allowance) contributing a maximum of £4,000 into a Lifetime ISA.

Transferring a Lifetime ISA

I am over 40, can I transfer my Lifetime ISA?

Currently we do not accept Lifetime ISA transfers if you are aged 40 or over.

Can I transfer my existing Lifetime ISA to The Nottingham?

We can only accept Lifetime ISA transfers into new Nottingham Building Society Lifetime ISAs - if you already have a Lifetime ISA with us, we are unable to accept your Lifetime ISA transfer in request. 

You can transfer an existing Lifetime ISA from another provider as long as:

• You are aged between 18-39 years old when you actually apply to transfer the account. We do not accept existing Lifetime ISAs if you are over the age of 40
• You must apply for the Lifetime ISA transfer online
• It must come from a single Lifetime ISA provider (we are unable to accept transfers from multiple Lifetime ISA)
• You must be transferring all of your Lifetime ISA funds from your existing Lifetime ISA provider, partial transfers are not permitted.

How long will it take to transfer my Lifetime ISA from my existing provider to The Nottingham?

Your current Lifetime provider is obliged, under HMRC (HM Revenue and Customs) guidelines, to complete the transfer within 30 days of receiving the request. There’s no need to tell your current Lifetime ISA provider that you are moving your money, we’ll do that for you and arrange the transfer. 

You will start to earn interest on the amount you transfer from the date on the transfer cheque from your current Lifetime ISA provider. Please do not pay in any funds into your Lifetime ISA with us until we have confirmed receipt of your Lifetime ISA funds from your existing Lifetime ISA provider or your account will be closed.

Please do not pay in any further funds into your Lifetime ISA with us until we have confirmed receipt of your Lifetime ISA funds from your existing Lifetime ISA provider.

Useful documents for transferring your Lifetime ISA

You will need two documents to help you with your transfer process. These can be downloaded here:

• Lifetime ISA transfer authorisation form
• Identification document

Buying a home with your Lifetime ISA

How do I buy my first home with a Lifetime ISA?

Once your Lifetime ISA has been open for 12 months, you can use your money to buy your first home, worth up to £450,000.

Your solicitor will need to send through a request to release your money so that you don't get charged the withdrawal fee. They will need to complete a Conveyancer declaration form and email it through to our customer service team. When you close your account it can take up to 24 hours for the money to appear in your nominated bank or building society account.

What happens if my house purchase falls through?

Don't worry, if things don't go according to plan with your house purchase your Lifetime ISA can be re-opened and the money saved will be replaced.

Help to Buy: ISA transferal

Can I transfer my Help to Buy: ISA into my Lifetime ISA?

No, you are unable to transfer your Help to Buy: ISA into your Lifetime ISA as they are different schemes. You can hold and contribute to both but you cannot use both schemes as a deposit to a property and you also cannot claim the bonus for both accounts.