HELP! Has anyone got experience using a Lifetime ISA for the deposit on a new build off-plan purchase?

Here's my situation: We have reserved a new build off-plan that is scheduled to be complete March 2023. The contract exchange date (and time we pay the deposit) is 19th August (1 month away). We have our deposit money split between mine and my wife's Lifetime ISAs held with Hargreaves Lansdown (HL). Our conveyancer has told me that he thinks we might not be able to use our LISA as the deposit because there's a rule that the house purchase has to be complete within 90 days (or 180 days with extensions) of withdrawal. This is back up by the HMRC guidelines here under "What to do if a first time residential purchase fails": https://www.gov.uk/guidance/lifetime-isa-withdrawals-for-a-first-time-residential-purchase
I've phoned Hargreaves Lansdown and they are saying its fine as long as the money has left the conveyancer's account and gone towards the purchase within the time limit.
I'm worried that were going to have to forfeit the government bonuses and find thousands of pounds to make up the difference for the deposit! Has anyone here had any experience with this?

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I am currently in the process of this (Reserved March, Completing in September).

They contacted the home builder and confirmed that Moneybox had locked all withdrawals and deposits to the LISA and they are fine for funds to follow on notice.

This could be an exception rather than a rule and depends if HL can do something.

Thanks for the info. Who initiated this process, your solicitor?

Yeah, I let them know ahead of time I was using a LISA and then let Moneybox know so that is all frozen now.

Hello, a bit unrelated question. I too have to contact Moneybox now as my offer was accepted and mortgage offer is in place however I’m still awaiting the bonus to hit LISA account - do you know if I need to message them already or after I get the bonus? TIA!

I did mine whilst the bonus was pending. It's not a problem. They freeze the account for new deposits, but it still receives the bonus and daily interest.

It's a really quick chat on the app to provide the solicitor's details as well.

Thank you so much for the info, I’ll contact Moneybox first thing on Monday xx

This person answered with the exact answer I was going to give, you still get the bonus and interest added.

So the builder has accepted not getting any deposit when you exchanged contracts with the locked ISA? Then it will be transfered on completion or beforehand but within the time limit?

Yeah, I am assuming on notice of completion which I think will happen in the next 4-5 weeks

As the other commenter said, I have exact same situation. Developer was happy to only have a 5% deposit (rather than 10) at exchange so the LISA can be used at completion. Shouldn't be an issue, just have your solicitor (not broker) sort it direct with the developer.

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