LISA and IVA- advice needed please

Risnog

Please can anyone advise on the following as nothing I can find online seems to have an answer....

I am 3 years into a 5 year fixed mortgage and own my own flat.

I met my partner within this term, he is 3 years into an IVA. He doesn't own a property and never has. Early on, he started saving in a LISA with a view that we can buy a house together one day.

He doesn't pay my mortgage and we are financially independent.

We're now keen to move to upsize, start a family etc. I can afford the new place outright on my mortgage. When his IVA expires in 2 years time (+ 1 year on the credit score), can he join me on the mortgage and still get the 25% increase on the LISA? It would be his first property and he'd be under 40. Or can you suggest any other way to work this? Otherwise we just move his saving to another account now and use them for renovations etc.?

Any suggestions would be appreciated.

K_S

Risnog said:

When his IVA expires in 2 years time (+ 1 year on the credit score), can he join me on the mortgage and still get the 25% increase on the LISA? It would be his first property and he'd be under 40. Or can you suggest any other way to work this? Otherwise we just move his saving to another account now and use them for renovations etc.?

@risnog The gov guidance here https://www.gov.uk/government/publications/conveyancers-lifetime-isa-technical-guidance/conveyancers-lifetime-isa-technical-guidance suggests that this may be possible. However, please DYOR.

Lifetime ISA investors can purchase a property as a joint owner with a person who already owns the property, but this is also subject to the conditions of the Lifetime ISA being satisfied.

firsttimespender

Is his money already in the LISA or is it being saved up in another account? If it’s in a LISA you’d have to pay a penalty to withdraw it for any reason other than for a house or for a pension so you’d need to look at moving it to use for renovations carefully. He shouldn’t put any more money in the LISA until you’re sure he can use it to come in on your house. 

Risnog

firsttimespender said:

Is his money already in the LISA or is it being saved up in another account? If it’s in a LISA you’d have to pay a penalty to withdraw it for any reason other than for a house or for a pension so you’d need to look at moving it to use for renovations carefully. He shouldn’t put any more money in the LISA until you’re sure he can use it to come in on your house. 

It's in the LISA already as we set it up ages ago. We've stopped paying into the LISA now but now the money is just sitting there when we really want it to contribute to our next home without paying a penalty.

Risnog

K_S said:

Risnog said:

When his IVA expires in 2 years time (+ 1 year on the credit score), can he join me on the mortgage and still get the 25% increase on the LISA? It would be his first property and he'd be under 40. Or can you suggest any other way to work this? Otherwise we just move his saving to another account now and use them for renovations etc.?

@risnog The gov guidance here https://www.gov.uk/government/publications/conveyancers-lifetime-isa-technical-guidance/conveyancers-lifetime-isa-technical-guidance suggests that this may be possible. However, please DYOR.

Lifetime ISA investors can purchase a property as a joint owner with a person who already owns the property, but this is also subject to the conditions of the Lifetime ISA being satisfied.

That's why I'm here

I guess I could call the Help to buy scheme to ask them.