Sometimes things don’t go according to plan. If your house purchase isn’t successful, your conveyancer will give the money back to your lifetime ISA provider.
If any of that money was used up, say on legal fees or other costs, there will be a 25% withdrawal charge on the amount missing since it wasn’t put towards buying a house.
This charge will come out of the money that your conveyancer sends back to your provider.
If you decide to try again, whether you want to still buy the same property or you’ve found a different one, you can restart the process with your conveyancer and put your money towards the new property.