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Lifetime ISA Rules
sjohns30
Posts: 1 Newbie
Hi All
1st post for anything ever so grateful for any advice.
My daughter is purchasing a £300k shared ownership property paying £120k in cash for a 40% share. She has a lifetime ISA which she wants to use but the rules say that she cannot use it if the property is a cash purchase. This means that she's potentially going to lose the government bonus she has in the ISA. My question is how can she get round this but obviously legally. My thoughts are that she applies for a very low value mortgage which will satisfy the Lifetime ISA rules but pay the mortgage off immediately. This obviously means getting a mortgage from a lender who provides shared ownership mortgages and also allows early payoff without penalty.
Does this sound feasible or am I missing something ?
1st post for anything ever so grateful for any advice.
My daughter is purchasing a £300k shared ownership property paying £120k in cash for a 40% share. She has a lifetime ISA which she wants to use but the rules say that she cannot use it if the property is a cash purchase. This means that she's potentially going to lose the government bonus she has in the ISA. My question is how can she get round this but obviously legally. My thoughts are that she applies for a very low value mortgage which will satisfy the Lifetime ISA rules but pay the mortgage off immediately. This obviously means getting a mortgage from a lender who provides shared ownership mortgages and also allows early payoff without penalty.
Does this sound feasible or am I missing something ?
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