Lifetime ISA and job-related accommodation

jakeeggertsen

Hi there,
I’ve recently started paying into a Lifetime ISA. If I’m finally in a position to buy a first home, my understanding is that we have to intend to live in the house to qualify for the LISA bonus. However, my family and I live in job-related accommodation and will do for the foreseeable future (I’m a vicar in the Church of England). Is there an exemption or way to make use of the LISA for those living in tied accommodation? Thanks.

Chloe901

Full disclosure - this isn't something I have experience in, and others may be better placed to advise. However, my understanding is that you have to "intend to live" in the property. So if you don't intend to live there, you will not qualify for the bonus. This blog post from MSE may help.

https://blog.moneysavingexpert.com/2016/04/can-you-rent-out-a-home-bought-with-a-help-to-buy-isalifetime-isa/?_ga=2.34498082.206277302.1588525680-495683625.1572469205

AdrianC

If you aren't going to live in it, what would you be doing with it?

The LISA and other HtB incentives are to help people buy their homes, and help to rebalance what's perceived to be a market skew towards BtL landlords (in conjunction with the tax changes to dissuade BtL).

That's why they're not to help people start those self-same residential lettings businesses...

jakeeggertsen

We’d have to let it out while we’re not able to live in it because I’m required to live in a clergy property. My wife and I have not been in the position to get onto the housing ladder before, and we see buying a house as an opportunity to plan for retirement. But perhaps you’re right - the LISA may not apply to us.

AdrianC

jakeeggertsen said:

We’d have to let it out

Exactly...

There are plenty of other ways to save for retirement - and they're entirely likely to be better, because BtL is not anywhere near as good an investment as it used to be. You could put a purely let property into a SIPP, but I don't think that'd work with you then moving back in.

Also - you'd be needing a BtL mortgage - are you looking at putting minimum 25% equity in...?

onwards&upwards

You can still get a LISA because they are also intended for retirement savings.  Look into the pros and cons on the article on the main site.

BTL is not something Jesus would have approved of, I wouldn't have though.

[Deleted User]

Do CoE vicars qualify as Crown servants?  If so and you intend to use the property as your main residence, then you will be eligible for the LISA bonus even if you are unable to live in it as your main home when you first purchase it. When you first purchase your property, you will be able to rent it out until you are able to move in.

I suspect that CoE clergy aren't Crown servants though even if the queen is the head of the CoE.  In which case you won't be able to use the LISA bonus to buy a property if you're not buying it to be your main residence from the start.

https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf/