Can a first time buyer use LISA for buy to let?

darkerknight

I have checked the gov.uk guidelines and it mentions the following to be eligible for LISA to buy a home:

You can use your savings to help you buy your first home if all the following apply:

• the property costs £450,000 or less
• you buy the property at least 12 months after you open the Lifetime ISA
• you use a conveyancer or solicitor to act for you in the purchase - the ISA provider will pay the funds directly to them
• you’re buying with a mortgage

Here is the link: https://www.gov.uk/lifetime-isa
I do not see any guidelines in gov.uk where it prohibits first time buyers to let out their property bought using LISA. Is this correct? 

grumiofoundation

Can a first time buyer use LISA for buy to let? Short answer - No. 




The link you have posted also says

You can withdraw money from your ISA if you’re:

• buying your first home

This does not include buy-to-let. This webpage has more detailed info https://lifetimeisa.campaign.gov.uk/ 

You must be a first-time buyer to put the Lifetime ISA towards your first home. A first-time buyer is someone who does not own, and has never owned, a home anywhere in the UK or the rest of the world.

The home you buy must:

• be in the UK
• have a price of £450,000 or less
• be the only home you will own
• be where you intend to live
• be purchased with a mortgage

eskbanker

darkerknight said:

I do not see any guidelines in gov.uk where it prohibits first time buyers to let out their property bought using LISA. Is this correct? 

https://www.gov.uk/guidance/lifetime-isa-withdrawals-for-a-first-time-residential-purchase

On completion of the purchase, the Lifetime ISA investor must occupy the property as their only or main residence.

It must always be the investor’s intention to occupy their property as their only or main residence when they are able to.

darkerknight

In that case I wasn't very clear on the definition of home from the govt. website. So essentially, "first home" is different from "first house/flat". Thanks!

eskbanker

darkerknight said:

In that case I wasn't very clear on the definition of home from the govt. website. So essentially, "first home" is different from "first house/flat". Thanks!

I'm not very clear on what you mean by that?  Those aren't separately defined terms as far as the LISA scheme is concerned so I can't see what you're getting at by trying to draw some sort of distinction, but the bottom line remains that you must live in the property you buy using a LISA....

grumiofoundation

darkerknight said:

I do not see any guidelines in gov.uk where it prohibits first time buyers to let out their property bought using LISA. Is this correct? 

To add to this point - you are allowed to let out a property purchased with a lifetime ISA if your circumstances change - but you must be buying with the intention of living in it. 

darkerknight

Yes thank you for that. I have since found out that it needs to be the main residence of the buyer. 

Thanks for the pointers 

eskbanker

darkerknight said:

I have since found out that it needs to be the main residence of the buyer.

As pointed out upthread two and a half years ago!