Lift Time Saver ISA

The_Hales

Hello Everyone,
I am currently trying to confirm if my wife would be eligible for the first time buyer benefits that the Lifetime ISA offers. Hopefully you can help.... 

Situation:
- I am the sole owner of the property my wife and I currently live in. I purchased this before we got married
- My wife has never owned a property
- In c.5 years, we hope to buy a new house with a JOINT mortgage. This will be the first time my wife purchase a home but will NOT be my first property. 
- My wife currently has a Help to Buy ISA but we hope to buy a house over £250k and will therefore not be eligible for the 25% saving bonus. 

Question:
- if my wife transfers to a LISA will she be eligible for the 25% saving bonus when jointly purchasing a property as described above? 

Thanks in advance - your advice is much appreciated! 

Ed-1

The_Hales said:

Hello Everyone,
I am currently trying to confirm if my wife would be eligible for the first time buyer benefits that the Lifetime ISA offers. Hopefully you can help.... 

Situation:
- I am the sole owner of the property my wife and I currently live in. I purchased this before we got married
- My wife has never owned a property
- In c.5 years, we hope to buy a new house with a JOINT mortgage. This will be the first time my wife purchase a home but will NOT be my first property. 
- My wife currently has a Help to Buy ISA but we hope to buy a house over £250k and will therefore not be eligible for the 25% saving bonus. 

Question:
- if my wife transfers to a LISA will she be eligible for the 25% saving bonus when jointly purchasing a property as described above? 

Thanks in advance - your advice is much appreciated! 

As long as she's under 40, she can open a Lifetime ISA and pay in up to £4,000 per tax year (all money paid in counts towards this limit, including from a H2B ISA). The 25% bonus gets paid in to the Lifetime ISA soon after the money is paid in.
As she is a first time buyer, she can withdraw from the Lifetime ISA penalty free to either (a) buy a home (including jointly with someone else who may not be a first time buyer) and/or (b) upon reaching age 60.

eskbanker

There is a line of argument that being married to a property owner effectively involves owning a legal interest in the property by virtue of it being a marital asset, despite not being named on the deeds, to the extent that they're no longer considered a first time buyer.