Lifetime ISA - First Time Buyer

jordhart1994

Hi,

I have a LISA that I plan on using for purchasing a property with my partner. Once we are ready to purchase, am I able to withdraw all of the money in my LISA, or only enough to cover the costs involved in buying the property? For example, if I have £30k in my LISA, but only need £25k for deposit/legal fees etc., can I still withdraw the full £30k or will I incur a charge?

Thanks,

eskbanker

Anything withdrawn without penalty has to go towards the purchase price of the property (not legal fees, etc), so if you have more than you need for that then you'll have to pay the 25% withdrawal penalty for the excess:

Before making a withdrawal from a Lifetime ISA, the investor must give their purchasing conveyancer all the following information in a declaration:

• [...]
• that the investor will only use the withdrawal to finance the purchase price of the property

https://www.gov.uk/guidance/lifetime-isa-withdrawals-for-a-first-time-residential-purchase#inv-dec

Beddie

jordhart1994 said:

Hi,

I have a LISA that I plan on using for purchasing a property with my partner. Once we are ready to purchase, am I able to withdraw all of the money in my LISA, or only enough to cover the costs involved in buying the property? For example, if I have £30k in my LISA, but only need £25k for deposit/legal fees etc., can I still withdraw the full £30k or will I incur a charge?

Thanks,

Just put down a bigger deposit, then you'll have no penalty and have lower monthly mortgage payments.