Lifetime ISA

iAmAFaithful

Hi

I wondered if anyone has any experience of using a lifetime ISA towards a property which is already owned by their partner. 

I’ve saved in a lifetime ISA for years and have a decent government bonus top up, however in the meantime I’ve met someone who already owns a property and moved in with them. They do not want to sell their house. I’m trying to work out my options as we do not want to live separately. 

You can’t use the lifetime ISA to purchase a property on a buy to let mortgage, and buying a property on a standard mortgage seems illogical in these circumstances. The sensible option we thought of is to use the deposit as a contribution towards the existing home when it comes to remortgaging. Does anyone know if this is possible? 

Thanks

eskbanker

iAmAFaithful said:

The sensible option we thought of is to use the deposit as a contribution towards the existing home when it comes to remortgaging. Does anyone know if this is possible?

Yes, provided it's handled as a formally-conveyanced sale and purchase of a stake in the property to transfer a chunk to your ownership, and you can use LISA money towards your purchase, as long as it's supported with a mortgage, plus compliance with the other scheme rules such as property value, etc.

iAmAFaithful

Thanks for the response. It’s not something I’m familiar with. Would this just be the use of a conveyancer to effectively sell the property to ourselves, just incurring the solicitor fees? 

eskbanker

iAmAFaithful said:

Thanks for the response. It’s not something I’m familiar with. Would this just be the use of a conveyancer to effectively sell the property to ourselves, just incurring the solicitor fees? 

Essentially, yes - your partner is selling a chunk of the property to you, and this needs to be handled via a qualified conveyancer, who'll be the one withdrawing the funds from the LISA as well as dealing with land registry, your mortgage lender, etc.