Checking I understand LISA

uberjason

Hey guys. 

So me and my wife are targeting buying our first flat summer 2023, starting to take it seriously now. 

If I open a cash LISA this weekend with £4000, then add another £4000 in May. The government is add in an extra £2000 for £10000 total.

Then, April 2023 I can add another £4000 and receive another £1000 for a total of £15000 just in time to use as a deposit next summer via solicitor or broker for our mortgage.

Have I got that right as it seems too simple and straightforward, hardest bit is saving the cash. 

Appreciate any clarifications I just can't quite wrap my head around the info in the first time buyers guide.

Albermarle

Have I got that right as it seems too simple and straightforward,

You have it right . As long as the flat you are thinking about is worth less that £450K

Your wife can also open one , so you could double the bonus top up , if you can find the cash of course .Even if she can only add £1000 it will still get a £250 top up. 

The more you can save towards the deposit , the cheaper your mortgage will be .

george4064

Your understanding is correct, only other restriction to consider is that the LISA must’ve been opened for at least a year for the money to be eligible for a house purchase. Appreciate Summer 2023 is more than a year away, so I guess the message is don’t delay opening your LISA and open it ASAP so the 12 months clock starts ‘ticking’ down.

uberjason

Albermarle said:

Your wife can also open one , so you could double the bonus top up , if you can find the cash of course .Even if she can only add £1000 it will still get a £250 top up. 

george4064 said:

I guess the message is don’t delay opening your LISA and open it ASAP so the 12 months clock starts ‘ticking’ down.

So my plan is to put £4000 into a LISA in my name this month, and £1 to start the clock in my wife's name. Then over the next year we can add as we can and enable us to get the 12 month restriction out of the way in time. 

My wife is an Australian citizen, resident here under a spouse visa which as far as I know is fine for LISA's and mortgages.

P1Fanatic

Would you not be better both opening LISA now, sticking £4k each in to get the full £1k bonus each for this tax year, then on/after April 6th you can both pay in another £4k or drip that in over the year to again get the full £1k each. And the same again in April 2023.