now 37, sold my flat in 2005 - HTB/LISA

jimjames

fun4everyone wrote: »

Thanks jj, do you have a cite for this? I have read nothing that talks about such a restriction. All the material I have read says LISA can be used for two reasons, retirement and buying first property. I have not read about previous homeowners under 40 not being allowed a LISA.

Apologies, it's slightly different from what I put originally. You can open a LISA but are excluded from buying a property if you aren't a first time buyer according to BBC - you'd have to withdraw the money and suffer the penalty charge

http://www.bbc.co.uk/news/business-37318001

Ed-1 wrote: »

You can have a Lifetime ISA if you are a homeowner as long as you are under 40 when you open your first LISA and you meet all other eligibility requirements specified in the draft regulations above.

You can open one but you can't use it to get the bonus to buy a property.

Ed-1

bigfreddiel wrote: »

LISAs are not a good deal, in no way can they compare to a pension. Open a SIPP and get a load of free money from the government now, not in some time in the future.

That extra money now will grow till you can access it at 55 or later..

A SIPP mocks spots off a LISA so that it's a no brainer.

Cheers fj

The point is it's not an either/or. You save into both. LISA funds can be accessed early in an emergency. Pension savings can't.

Pension tax relief will no doubt be scaled back in the near future (probably back to a flat rate of relief) so LISAs will increasingly look more attractive (particularly if you can avoid the withdrawal charge by replacing the funds at a later date which the Treasury are still considering) and it will increasingly be LISAs, rather than pensions, that will be extended so the Treasury keep more in tax receipts today.

Ed-1

jimjames wrote: »

Apologies, it's slightly different from what I put originally. You can open a LISA but are excluded from buying a property if you aren't a first time buyer according to BBC - you'd have to withdraw the money and suffer the penalty charge

http://www.bbc.co.uk/news/business-37318001

You don't have to rely on the BBC when you have the draft regulations .

You wouldn't suffer a withdrawal charge if you left it until age 60 or if the Treasury allows early withdrawals without charge if the funds are replaced at a later date, or adds in other charge-free events in the future.

jimjames

Ed-1 wrote: »

The point is it's not an either/or. You save into both. LISA funds can be accessed early in an emergency. Pension savings can't.

S&S ISA funds can be accessed whenever, without restriction or penalty

Ed-1

jimjames wrote: »

S&S ISA funds can be accessed whenever, without restriction or penalty

Without a 25% top up.

jimjames

Ed-1 wrote: »

Without a 25% top up.

Which you don't get with a LISA anyway if you access early or to buy a property if you already own one and in fact are worse off due to the charge applied

veryintrigued

jimjames wrote: »

Which you don't get with a LISA anyway if you access early or to buy a property if you already own one and in fact are worse off due to the charge applied

These products look like a fantastic opportunity for those in the right circumstances.

Don't write them off for everyone else you risk looking daft.