LISA for part buying a house

emilycase

Hi, 

Unfortunately my partners grandfather passed of COVID not long ago. My partner is very keen for him and myself to purchase his grandfathers house and do it up. We won’t be able to afford it all, so his mother will keep approximately half. 

Will I be able to use the money I have been saving in my LISA to part buy this house? Or should I consider taking it out before the penalty returns end of March.  

Thanks 
Emily 

masonic

You can't use a LISA towards a private sale (i.e. without going through a standard conveyancing process with different solicitors representing buyer and seller). You must also take out a mortgage on the property, which may be problematic if it isn't being purchased via a recognised shared-ownership scheme. If you can get around those issues, then you could use your LISA towards the purchase, but you should make sure the bonus outweighs any additional costs.