LISA for a retired person

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tomsunclepeterbdhl
tomsunclepeterbdhl Posts: 2 Newbie
in ISAs & tax-free savings
From reading Martin's recent blog, it occurs to me that a LISA could give me a £1,000 free money. Am I mistaken?

It seems that for someone over 60 (which I am) one can put £4K into a LISA and then a year late one has a £1K bonus along with any interest accrued.It seems that after a year one can take the money out, without penalty.

Is this the case? I presume the scheme was not designed to be used in this way, but can one do so?

Peter

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  • MallyGirl
    MallyGirl Posts: 6,626 Senior Ambassador
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    you have to be under 40 to open a LISA
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • tomsunclepeterbdhl
    tomsunclepeterbdhl Posts: 2 Newbie
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    Thanks MallyGirl. I did think it was too good to be true!

    Peter
  • jimjames
    jimjames Posts: 17,621 Forumite
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    edited 21 February 2018 at 8:43PM
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    If you're not drawing pension then you can do similar with that with tax free lump sum.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Rich2808
    Rich2808 Posts: 1,332 Forumite
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    You would be eligible for a help to buy isa - assuming you have never bought a property before.

    There is no age limit for that - a 90 year old qualifies for the bonus.
  • eskbanker
    eskbanker Posts: 31,066 Forumite
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    Rich2808 wrote: »
    You would be eligible for a help to buy isa - assuming you have never bought a property before.

    There is no age limit for that - a 90 year old qualifies for the bonus.
    Which mortgage provider would you recommend for a 90 year old buying a property?!
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    eskbanker wrote: »
    Which mortgage provider would you recommend for a 90 year old buying a property?!
    The 90-year old probably doesn't work 9-5 any more so has plenty of time to go up and down the high street or into brokers looking for one... :)

    My mortgage is with Nationwide and their maximum age for a retired applicant is '80 next birthday' with a term not to exceed 85th birthday and only up to 60% LTV. If you have never had a property before but are only looking for a low LTV and short term mortgage, getting up to £4k of bonus for free from a HTB ISA might be very welcome. With stamp duty not being applicable to the first £300k for first time buyers any more, your £4k of free money would probably offset the stamp duty, legals and moving costs on a nice £350k retirement bungalow.

    There are probably not many 90 year olds in the game but if you said 70-80 year olds in the example instead I'm sure that out of the several millions of them, there will be some who might think: hmm free money, why not!
  • Alexland
    Alexland Posts: 9,653 Forumite
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    The lenders had better get out the comfy chairs for the influx of silver HTB ISA savers!
  • Ed-1
    Ed-1 Posts: 3,892 Forumite
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    bowlhead99 wrote: »
    The 90-year old probably doesn't work 9-5 any more so has plenty of time to go up and down the high street or into brokers looking for one... :)

    My mortgage is with Nationwide and their maximum age for a retired applicant is '80 next birthday' with a term not to exceed 85th birthday and only up to 60% LTV. If you have never had a property before but are only looking for a low LTV and short term mortgage, getting up to £4k of bonus for free from a HTB ISA might be very welcome. With stamp duty not being applicable to the first £300k for first time buyers any more, your £4k of free money would probably offset the stamp duty, legals and moving costs on a nice £350k retirement bungalow.

    There are probably not many 90 year olds in the game but if you said 70-80 year olds in the example instead I'm sure that out of the several millions of them, there will be some who might think: hmm free money, why not!

    Except the max bonus from a H2B is £3k.
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