Using Lifetime ISA for transfer of equity

andauos

My partner has a joint mortgage with her brother.

If I buy her brother out (transfer of equity) would this still qualify for the 25% goverment bonus?

(I will be looking to take on his share of the mortgage plus what I would need to buy him out with a mixture of deposit and addtional loan.)

masonic

Potentially it would qualify, if her brother formally sells his stake in the property to you and you either remortgage the property with your partner or are able to convince a lender to take a second charge.

You would need to discuss with a conveyancer/solicitor as to whether the terms of the transaction meet eligibility criteria. It may be cheaper overall to transfer the equity in a way that wouldn't qualify for a penalty free LISA withdrawal.