Buying an investment house and still use LISA for personal house

djdw2001

Hi, was wondering if there is any way to buy a house for investment then buy a personal house using a LISA? 

Thanks; 

Dylan

grumiofoundation

No.

You can only use a LISA to buy your first home (i.e. to live in it yourself) and you cannot use the LISA if you are not a first time buyer - which if you have owned another property, you are not. 

Also remember you sacrifice FTB stamp duty relief by buying your first property as an investment.

Edit: to clarify this is in your name - see below re company. 

K_S

djdw2001 said:

Hi, was wondering if there is any way to buy a house for investment then buy a personal house using a LISA? 

Thanks; 

Dylan

@djdw2001 DYOR or get professional advice but from what my clients have said - you retain your FTB status if you buy a BTL property through a ltd. co.

If you buy a BTL in your personal name, then you lose your FTB status at that point.

Pow11890

djdw2001 said:

Hi, was wondering if there is any way to buy a house for investment then buy a personal house using a LISA? 

Thanks; 

Dylan

Hi you need to be a first time buyer & purchase for personal residential to use the LISA funds. By doing a BTL (investment property) , you loose that FTB status. So ideally you need to buy your personal home first if you wish to use the LISA funds without penalty. If you don’t and choose to buy BTL property first, you’ll need to pay penalties to release the funds in the LISA cos they won’t be useable for a purchase. Or you leave the funds in there for your pension use. 

But it’s worth checking it over with a mortgage adviser see if there’s anyway around this. The above is from my own personal knowledge. Not an adviser!