Lifetime ISA and rent-a-room scheme

Jae14

Hi, 

I have been saving for deposit via the Lifetime ISA. I am not in a relationship but hate living on my own so would be keen on renting a room out when I purchase a house and this will also help with mortgage payments. The only thing is, I know you can't rent out your house when it's bought with a LISA. Is this the same with renting out a single room? I'd be tempted to take the hit and withdraw from the LISA if so. I'd imagine I'd get the money back in the long-run from renting the room?

Peter999_2

Hi,  Yes, you can rent a room even though you've bought the house using a LISA.

See here - Can you rent out a home bought with a Help to Buy ISA/Lifetime ISA? - Martin Lewis' Blog... (moneysavingexpert.com)

Towards the bottom of the page it says : – Can you use the rent a room scheme with the help to buy ISA? In a word… yes. See Rent a Room

It's tax free up to £7,500 as well.