Lifetime ISAs guide

drscfc85

Hi, I have a really specific question regarding LISA's that I can't seem to find an answer to anywhere, probably I assume, because it isn't possible.

I am a homeowner on my own, my partner who I live with would like to start saving to help us potentially buy a house together in a few years and the LISA seems like the best option in terms of maximising her savings. This works pefectly as far as I can see assuming we buy a house under £450,000 which at this moment in time would be fine. My concern is if house prices rise but the maximum puchase value doesn't she is stuck with a penalty on her savings.

In that instance I wonder if she could use her LISA to buy into my current house, that way she could get herself onto the ladder with me and we could if necessary sell the current home together to purchase one over £450,000 or stay put in the home having had her used her savings to buy into it. I can only find information about joint purchasing a new home, not whether or not she could effectively buy into an existing one.

I guess it is a long shot that it would be allowed but any clarity would be very gratefully recieved.

Zorillo

It doesn't seem worth the hassle of paying conveyancing fees etc given the max bonus she can have earned so far will be £2k?

Unicorn_cottage

Sorry if a daft question. I believe there are not many providers offering the LISA so after year 1 of having a LISA I assume you have to apply again to the same provider or another? Do you then end up with multiple accounts or do they transfer into the next year so to speak?

Zorillo

The L stands for Lifetime, which is how long the account can last if you want it to. They have a new allowance each year, but the account remains the same.

I think you could open separate ones each year but I can't see why you would.

Danny2290

Hi,

I am looking at opening a LISA with the intention of buying a home in roughly 2 to 3 years time.

During this time, it is likely that I will become married to my current partner who has owned property previously in another country. My questions are:

1. 1. Can I still use my LISA towards the cost of my first home as a first-time buyer?
   
2. 2. If I am not considered a first-time buyer due to my partners previous property, am I able to be treated as a first-time buyer if her name is not added to the deeds?
   
3. 3. If her name is not added to the deeds, am I able to add this to the deeds later on without incurring any sort of penalty?

I'm worried that being married or buying a home with her is going to have a negative impact on my LISA, so please can anyone advise me on the best way through this scenario?

Thank you in advance!

eskbanker

As the answer to your first question is 'yes', the others aren't relevant - there is no issue with buying in conjunction with a non-FTB and having their name on the deeds.

JohnPeter95

Hi all,

Bit of a long shot, but does anyone know whether supporting a Right to Buy Application would count as 'buying a first home', for the purposes of the LISA.

My dad is lead tenant on the council property and I am eligible to support his application for Right to Buy. Neither of us own any other property.

Martin mentioned that buying a first home includes Right to Buy but didn't specify whether it includes supporting a Right to Buy application - I suspect it does but I don't want to end up with egg on my face in the case that it is not allowed.

If anyone could provide any guidance I would be most grateful, I am holding off opening a LISA until I know whether or not I could use the funds as such.

Many thanks,

John

masonic

Will you be a part-owner at the end of the Right to Buy transaction? Will you be taking out a mortgage either in your sole name, or jointly with your father?

Harriet71189

Hi, I have a quick question which I'm hoping I know the answer to but just wanted some clarification /it confirmed!

My partner and I both opened our LISAs last Feb and so they will have been open for the minimum 1 year already by the time we buy our first house this year. Mine currently has £1 (whoo) in - if I manage to put the max £4k in before the end of the tax year in April will I get the full £1k award and be able to withdraw it in say August 2019 for my deposit?

I just wasn't sure if the funds had to be in there a year before you get the full benefit / can withdraw without penalty.

Thanks in advance if anyone can confirm this!

masonic

Harriet71189 wrote: »

My partner and I both opened our LISAs last Feb and so they will have been open for the minimum 1 year already by the time we buy our first house this year. Mine currently has £1 (whoo) in - if I manage to put the max £4k in before the end of the tax year in April will I get the full £1k award and be able to withdraw it in say August 2019 for my deposit?

Yes if you pay in towards the end of this tax year, the £1k should be credited during May. You also have time to contribute up to £4k in the next tax year and would receive the bonus on that money within a couple of months.

Once the account has been open for a year, a first time buyer can make a penalty free withdrawal up to the full balance of the account at any time.