If your client is ready to withdraw from their Lifetime ISA for their first home, here are some of the questions we get asked about our Lifetime ISA by Conveyancers & Solicitors.
If you can’t find the answer to your question here, you might find it in our Lifetime ISA FAQs or you can contact the team via Live Chat or by telephone.
You will need to complete our Conveyancer Declaration form and send it to us along with the completed Investor Declaration form. Both forms, along with a completed Home Purchase Progress Form must be sent at least 30 days before your client’s anticipated completion date.
Below are handy links to the Investor Declaration and Conveyancer Declaration, which you can use to download the forms.
Also below is a link to a Home Purchase Progress form, which you should use to keep us updated with the progress of your client’s purchase.
Alternatively, you can contact us by telephone, email or post to request copies of the forms.
We would need the completion date to be confirmed in order for us to ensure that the withdrawal is processed in a timely manner and appropriately prioritised. If a completion date is not supplied, the funds will be sent to you 30 days after the request is received.
If you submitted a request without the completion date and subsequently confirm the date, please contact us as soon as possible by emailing savings@bibs.co.uk.
If the forms have been sent without a completion date and the completion date has subsequently been set for less than 30 days after the forms were received, you should contact us as soon as possible.
Yes, we can accept both the Conveyancer Declaration and Investor Declaration forms via email, so you are able to give us as much notice as possible. The declaration forms must be sent on separate emails for each client, to ensure Data Protection standards are met.
Once the funds have been released, you have 90 days from the date of receipt to complete your client’s house purchase.
If there is a delay, and completion is not likely to take place within 90 days, you can contact us to request an extension. To request an extension, you will need to send us an updated Home Purchase Progress form, completing sections one and three.
You can request withdrawals from the account as many times as your client requires up to completion, there is no minimum withdrawal amount. We’d require completed declarations from both you and your client each time a withdrawal is requested during this process.
A withdrawal can be requested for a specific amount or for the full amount currently held in the account. If you request a full withdrawal, you must leave £1 in the account to keep it active.
The money can only be used for your client’s deposit on their first property and it must be purchased with a mortgage (but not a Buy to Let mortgage), on a property with a purchase price of £450,000 or less. Otherwise, a government withdrawal charge of up to 25% would apply.
The purchase price of your client’s first home must not exceed £450,000 and the property must be purchased in the UK with a mortgage, but not a Buy to Let mortgage. The mortgage must not be a loan from a connected party. A connected party is defined as:
Your clients must occupy the property as their main residence immediately on completion. Please note that if the client(s) are a UK Crown employee serving overseas they must intend to reside in the UK and use the property as their main residence in the future.
If a withdrawal is made from the Lifetime ISA without satisfying these conditions, the government withdrawal charge of 25% of the amount withdrawn will apply.
From 29 October 2026, if your clients are looking to purchase a property for more than £450,000, a reduced withdrawal charge of 20% will apply, provided all the other criteria noted above are met.
If the house purchase falls through, you must return the funds within 10 working days of the house purchase falling through and the amount withdrawn will be paid back into your client’s account.
When you request a withdrawal, the Lifetime ISA must be left open with £1, rather than closing it. This will ensure that the funds can be paid back into the account, and your client can use their Lifetime ISA going forward.
Please complete and submit the Home Purchase Progress form to begin this process.
If you return less than the amount withdrawn or do not return the funds to us within 10 working days, your client will be charged a 25% government withdrawal charge on the shortfall amount.
If you need to request an extension to the 90 day completion deadline, please contact us as soon as possible via email at savings@bibs.co.uk, completing and submitting the Home Purchase Progress form to make the request.
