25% Bonus re-paid if sell house

Jazz11

If I use my HTB ISA OR Lifetime ISA to get the 25% bonud and buy a house. Are there rules on how long you must keep that house before selling it so you don't loose/have to re-pay the 25% bonus?

jimjames

As far as I'm aware there is no time limit but buying and selling immediately could cost you more than the 25% bonus

masonic

You need to be intending to live in the property as your main residence when you buy it. If your circumstances change and you need to move this should not be a problem.

Jazz11

jimjames said:

As far as I'm aware there is no time limit but buying and selling immediately could cost you more than the 25% bonus

What would cost more than 25% bonus. 
We're considering a small house that requires updating and potential for further renovation/extension. It's not a long term option as it is not in the locations we want to be in but potentially a good investment for a first time renovation for first time buyers looking to do up and sell on. 

masonic

If you were planning to continue living somewhere else while renovating the property, then that obviously wouldn't meet the criteria for getting the bonus or making a penalty free LISA withdrawal. But if you are simply moving to this property because it is what you can afford at the time and plan to make improvements while living there before moving to a more suitable property when you have enough equity in the property to do so, then I wouldn't have thought that would be a problem. You would have evidence this was your home for however many months and could demonstrate the uplift in your finances that enabled you to take your next step on the ladder to HMRC if you were ever challenged.