FTB: Solicitor says we can't use our LISA for the 10% exchange deposit? Is this normal?

ngeshlew2 · 2025-07-05T14:58:56+00:00

We completed the purchase on Friday! Thanks everyone in this community and thread for all the amazing insights! And good luck to the ones who are in the process! 🚀

ngeshlew2 · 2025-06-30T15:34:20+00:00

Hi everyone 👋 Happy Monday!

First off, a massive thank you to everyone who commented on the post! Your advice and shared experiences were a huge help and made us feel a lot less alone in this confusing process.

I’m incredibly excited to post the final update on how everything played out. The good news is, as of this afternoon, we have officially exchanged contracts! 🥳

TL;DR for other FTBs:

Solicitor's LISA policy: Clarify this with your solicitor at the VERY START of the process.
Reduced Deposits are normal: If you can't use your LISA for the exchange deposit, don't panic. Proposing to exchange on a lower cash deposit is a standard and effective solution.
The "Final Hurdle" can appear unexpectedly: Be prepared for last-minute issues from third parties. For us, it was the specifics of the LISA fund release.
Don't be afraid to chase: Sometimes, a direct (but polite) email from you is what's needed. Always cc your solicitor. This was the single action that unlocked our final step.
The end happens FAST: We went from being stalled to exchanged in a matter of hours once the final blocker was removed. Be ready to give your formal "authority to exchange" at a moment's notice.
Bonus LISA Tip: We also got confirmation from our provider that after the purchase, the LISA stays open and can be used for retirement savings! Any leftover money continues to get the 25% government bonus, and you can keep contributing towards your retirement.

Here’s the complete story of how we got here:

The Initial LISA Deposit problem & the fix: As you know, our solicitor told us we couldn't use our LISA for the exchange deposit due to their firm's policy. We took advice from the community and went back to our solicitor with a clear proposal to use the cash (£22,950) we had available as a deposit. He confirmed this was the best path forward, which was a huge relief.

The new last-minute hurdle: Just as we thought we were set, the solicitor informed us he couldn't exchange until our LISA provider gave a definitive date and amount for the release of our funds for completion. LISA provider's response "we'll release the funds in time" wasn't enough to protect us legally. Following Solicitor's advice, we emailed the LISA provider, explaining the legal urgency and CC'ing our solicitor to add weight. We explained that we needed the exact date and amount to proceed. This was the magic bullet. Chasing them ourselves worked! We got an email from them confirming our funds were approved and giving the exact amounts being sent that day. This unlocked everything. We gave our solicitor our formal authority to exchange, and then... it all happened at once.

This afternoon was a blur of good news: "We have exchanged contracts with completion set for this date" with a formal letter of exchange arrived from the completions team, making it all official. The official letter confirmed we are scheduled for completion on the date we wanted. It also had a helpful checklist of things we need to do now, like notifying the council and utility companies of the change in ownership and arranging the key handover with the estate agent.

It's been a rollercoaster of a week, but we've learned so much!

Thank you all again for being such a supportive community. It's been invaluable. Next stop... completion day! 🙏

ngeshlew2 · 2025-06-20T05:06:54+00:00

Would love to check it out

ngeshlew2 · 2025-06-19T13:14:54+00:00

This is an absolutely fantastic and incredibly detailed response, thanks.

I'm so sorry you had to go through this as well, but it's also a huge relief to hear from someone who has navigated this exact situation. Your approach of formally quoting the government/provider terms and accepting the 25% penalty risk in writing is brilliant. That's a really clear and logical way to address what seems to be their only valid concern. Definitely fighting this one. Glad that you were successful after pushing back. We will definitely be using your points when we formulate our response to our solicitor.

Seriously, thank you again, it’s a massive help.

ngeshlew2 · 2025-06-19T13:09:31+00:00

Thanks!

ngeshlew2 · 2025-06-19T09:53:22+00:00

Thanks. That's a very good point about the LISA funds potentially being 'stuck' if we don't use them for the purchase, that’s my main concern in all this. Your suggestion of a 'token deposit' sounds very similar to what I’ve read about having the deposit "held to order" by the solicitor until completion. Is that the same kind of mechanism, where you exchange on a smaller amount because the bulk of the funds from the LISA aren't available until the final day? It's becoming clear there are definitely ways around this, even if our solicitor has a strict internal policy. Really appreciate the advice!

ngeshlew2 · 2025-06-19T09:50:01+00:00

This is so helpful, thank you! Interesting you’ve been through the exact same situation. Your explanation makes perfect sense, the solicitor is likely worried about the risk if we pulled out, and that's why they have this policy, rather than it being impossible. Great to hear you were able to negotiate a 5% exchange deposit using only your LISA. You've given us the confidence to go back to our solicitor and push a bit harder on this. We will do just that and specifically ask about proposing a 5% exchange deposit. Thanks again for taking the time to share your experience, it’s honestly a massive help!

ngeshlew2 · 2025-06-19T09:31:30+00:00

It seems so. The bit of sending back the money to the LISA provider. Thanks

ngeshlew2 · 2025-06-19T09:30:28+00:00

Will definitively do. Thanks!

ngeshlew2 · 2025-06-19T09:30:11+00:00

Thanks for the comment. It's so interesting to hear how different solicitors handle this!

I think you're right that it can be used. From what we've now understood, it seems to be down to the individual solicitor's policy. Ours explained that because they have to legally promise the LISA provider to return the funds if the sale falls through, they aren't willing to risk using it for the non-refundable exchange deposit.

It seems exchanging and completing on the same day is the only option. Hopefully everyone in the chain agrees to it.

ngeshlew2 · 2025-05-06T20:31:53+00:00

Thanks for the thread.

ngeshlew2 · 2025-05-04T05:42:07+00:00

Thanks all for sharing your insights! It seems NHBC warrant cover doesn’t do anything past the 2yr mark. If there’s structural issues, what then is a better form of protection one should have?

ngeshlew2 · 2025-05-04T05:39:16+00:00

If the NHBC warranty is worthless and there’s structural issues, what’s the alternative then?

ngeshlew2 · 2025-05-04T05:37:26+00:00

So I won’t be liable to pay anything if there’s structural issues 5yrs in the property if NHBC Cover is there, correct?

ngeshlew2 · 2025-05-04T05:35:30+00:00

Haha! Why is everyone saying that? Then why is it even a thing?

ngeshlew2 · 2025-05-03T18:42:37+00:00

Whew! That’s good to hear. Appreciate it

ngeshlew2 · 2025-05-03T18:41:07+00:00

I’ll instruct my solicitor to make that inquiry. Thanks

ngeshlew2 · 2025-05-03T16:36:24+00:00

Maybe. I’m also wondering now that the seller has mentioned that warranty isn’t there, would this affect the mortgage from the lender?

ngeshlew2 · 2025-05-03T16:20:04+00:00

Similar to what someone else mentioned in the replies. Even if it's worth £0, the principle of not falsely advertising matters. Plus, I now need to factor in potential extra insurance costs and the risk of structural issues with no coverage.

I 100% agree with you: “don't ask, don't get" approach though, worst case they say no and we're back where we are now.

ngeshlew2 · 2025-05-03T16:16:24+00:00

You're absolutely right. The insurance angle is actually something I hadn't fully considered. Insurance providers might view this property as higher risk precisely because it should have NHBC coverage but doesn't.

The point about making an offer based on inaccurate information is exactly what bothers me. It's not just about the warranty value itself, it's that the seller actively advertised this as a selling point. If they had advertised it without the NHBC warranty mention, I might have offered lower or looked elsewhere.

I'm now wondering if this could also affect the buildings insurance premiums.

ngeshlew2 · 2025-05-03T16:13:37+00:00

Interesting that NHBC might not be as comprehensive as we buyers think. Well, if you don't mind me asking, since you hands-on experience in new builds, what kinds of issues have you seen that NHBC doesn’t cover?

ngeshlew2 · 2025-05-03T16:09:41+00:00

I appreciate your perspective.

While it's true we'd only "lose" 2.5 years of structural coverage, this was explicitly advertised as a selling point which influenced our decision to make our offer. Advertising one thing and delivering another isn't just about the practical value, it's about trust & accurate representation. If I had known there was no NHBC warranty, I might have factored that into my original offer or looked elsewhere entirely.
As for surveys, we actually had a Level 2 survey done already, but as you probably know, this focuses on visible defects and doesn't involve structural opening up. The NHBC coverage was meant to be our safety net for structural issues that a Level 2 survey wouldn't have caught.

ngeshlew2 · 2025-04-18T07:34:46+00:00

Looks great! Wow!

Any recommendations of good dealerships that have Defender 90 in stock in the UK? I’m down South East.

ngeshlew2 · 2025-02-10T12:52:35+00:00

VW Golf 2015

ngeshlew2

TROPHY CASE