Right to buy with LISA

PartialRequirement

Hi,

I was unsure where to post this and I haven’t been able to get a straightforward answer as such with the few questions I have, so please feel free to correct me if it’s in the wrong place!

I opened a LISA a few years ago, will have a decent deposit in the next few months and want to buy the council home I’m currently living in with one of my family members. It will be our first home purchase and will qualify for the right to buy discount as we’ve been here for a good few years now, unsure of the amount exactly though. The main reasons for the purchase is that I want to ensure my family would be fine for the future, the discount will be quite large and in the later years when it’s not needed I could sell this and profit. I was wondering if anyone could help at all with a few questions please!
- whether it’s possible use the LISA in conjunction with the right to buy scheme?
- what the impacts/repercussions are of buying the first home, e.g. if I wanted to buy my own home, on my own in the future after paying this mortgage off?
- how long the whole process may take and when is best to start this? I want to buy before the end of the year if there aren’t any surprises financially
- can I still use the LISA when joint-mortgage holder, with my family member getting the cup council discount (tenant and they pay the bills/their name on the tenancy if you will)

I have no idea about any of this and have tried the right to buy advisors, my LISA provider and not many have answers that I felt confident about. Just wondered if anyone could help!

Thank you

[Deleted User]

PartialRequirement wrote: »

Hi,

I was unsure where to post this and I haven’t been able to get a straightforward answer as such with the few questions I have, so please feel free to correct me if it’s in the wrong place!

I opened a LISA a few years ago, will have a decent deposit in the next few months and want to buy the council home I’m currently living in with one of my family members. It will be our first home purchase and will qualify for the right to buy discount as we’ve been here for a good few years now, unsure of the amount exactly though. The main reasons for the purchase is that I want to ensure my family would be fine for the future, the discount will be quite large and in the later years when it’s not needed I could sell this and profit. I was wondering if anyone could help at all with a few questions please!
- whether it’s possible use the LISA in conjunction with the right to buy scheme?
- what the impacts/repercussions are of buying the first home, e.g. if I wanted to buy my own home, on my own in the future after paying this mortgage off?
- how long the whole process may take and when is best to start this? I want to buy before the end of the year if there aren’t any surprises financially
- can I still use the LISA when joint-mortgage holder, with my family member getting the cup council discount (tenant and they pay the bills/their name on the tenancy if you will)

I have no idea about any of this and have tried the right to buy advisors, my LISA provider and not many have answers that I felt confident about. Just wondered if anyone could help!

Thank you

As long as you're buying your first home and it's not valued at more than £450k I don't see why you couldn't use your LISA.

When you move out to buy another home you'll have to pay the higher rate of SDLT and could impact your mortgage affordability. When you eventually sell this place it will be subject to CGT.

Search the forum for others who have used RTB because it has come back to bite some on the !!!! further down the line so go in with your eyes wide open and put your tin hat on.