HTB - move to Lifetime ISA?

My 19 year son took out a HTB ISA at 16 and has been paying into it each month since then. We live in Oxfordshire and the property price limit of £250K might buy him a shed when he has saved enough for a deposit! I’m thinking he should move his HTB to a Lifetime ISA but have a couple of questions.

If he doesn’t end up buying a house then is his money tied up until retirement? At what age?

What happens if the unthinkable happens and he becomes terminally ill or dies?

Thank you in advance for helping me to understand this better.


  • MX5huggyMX5huggy Forumite
    6.6K Posts
    Part of the Furniture 1,000 Posts Name Dropper

    Withdrawing money from your Lifetime ISA

    You can withdraw money from your ISA if you’re:

    • buying your first home
    • aged 60 or over
    • terminally ill, with less than 12 months to live

    You’ll pay a withdrawal charge of 25% if you withdraw cash or assets for any other reason (also known as making an unauthorised withdrawal). This recovers the government bonus you received on your original savings.


    If he dies the money can be withdrawn. 

    LISA savings are counted for benefits compared with pension savings which are not. 

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