We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How difficult is it to use a Lifetime ISA (LISA) with support?
Nickhxrris
Posts: 1 Newbie
Student, with £15k Lifetime ISA (LISA) pot, looking to purchase flat to avoid extortionate student accommodation. My thinking is purchase 2 bed flat, using my deposit and parents ability to get mortgage, rent the other room until I graduate then either set up home there, or rent out flat.
1. Am I allowed to purchase it if they're supporting me?
2. If we decided to rent out can we swap to a buy to let mortgage (is that even a thing you can do?)?
3. I know you're not allowed to use a LISA on a property you intend to rent, how long after purchase does that apply for & does that include renting the other room whilst yourself occupying?
Cheers.
1. Am I allowed to purchase it if they're supporting me?
2. If we decided to rent out can we swap to a buy to let mortgage (is that even a thing you can do?)?
3. I know you're not allowed to use a LISA on a property you intend to rent, how long after purchase does that apply for & does that include renting the other room whilst yourself occupying?
Cheers.
0
Comments
-
You as in the person with the LISA has to buy a property using a mortgage. In your proposal you won't be buying a property with a mortgage because it's your parents who would take out the mortgage so your plan fails. You could however look at student mortgages offered by Vernon, Bath and Loughborough Building Societies though. I'm not a mortgage broker so I don't know the full details just that it's away of allowing students to get a mortgage.Nickhxrris said:Student, with £15k Lifetime ISA (LISA) pot, looking to purchase flat to avoid extortionate student accommodation. My thinking is purchase 2 bed flat, using my deposit and parents ability to get mortgage, rent the other room until I graduate then either set up home there, or rent out flat.
1. Am I allowed to purchase it if they're supporting me?
2. If we decided to rent out can we swap to a buy to let mortgage (is that even a thing you can do?)?
3. I know you're not allowed to use a LISA on a property you intend to rent, how long after purchase does that apply for & does that include renting the other room whilst yourself occupying?
Cheers.
You can go from a residential mortgage to a BTL mortgage. Remember though that on your next purchase you will need to pay the higher rate of SDLT.
There isn't a time frame. You just can't use a LISA to fund the purchase of a property that will be used as a BTL from the get go.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards