Renting LISA bought first home

RossDawson12

I have seen multiple posts/articles on this issue and I’m still left uncertain.

If I was to purchase a home with a LISA and then decide to upsize to a bigger house in the future, would I be able to rent out my first home?

If so, how long before you can make this move without paying a penalty from the LISA?

Any help appreciated.

eskbanker

There's no hard and fast time limit, but the Treasury assured MSE that they'd take a common sense approach:

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

RossDawson12

That was one of the articles I was referring to; I am just cautious as to whether upsizing would be a good enough reason to rent out my first home.

Hopefully around 5 years would be an acceptable timespan.

eskbanker

RossDawson12 said:

That was one of the articles I was referring to; I am just cautious as to whether upsizing would be a good enough reason to rent out my first home.

Hopefully around 5 years would be an acceptable timespan.

The situation you describe is exactly the same as scenario 3 in that article, confirmed as acceptable to the Treasury, whether after two, five or ten years:

3. You live there then want to buy elsewhere and rent it out.
After two years of living in the property, you decide you want to upsize to another house, and want to keep this to rent it out.
i) As above but after five years.
ii) As above but after 10 years.