Using LISA - Mixed use property & 2 purchases

se2020

I am looking to buy a house. Currently a first time buyer.
 Price of house £350k with a mortgage. 
As a linked transaction I am looking to buy some adjoining land for £100k as a cash purchase.

Plan would be to have a clause in the contract for the house purchase so I can exchange on the house but the contract is void if exchange on the land is not complete within X days following that.
Basically I only want to buy either if I can buy both and not run a risk of exchanging on the house and the seller then pulling out if the land sale.

I believe this should mean I have FTB status when purchasing the house and I should be able to use the funds in my Lisa against the house purchase.

Also, this will class as a 'mixed-use' property so I will not be eligible for FTB SDLT relief but I do not think the mixed-use status affects the Lisa?

Can anyone confirm if this is correct?
Thanks!

masonic

A penalty free LISA withdrawal must be used towards a property that is residential. If it doesn't meet the criteria for SDLT, then that would be a concern. What about the mortgage provider? Are they offering a standard residential mortgage for the property? Will there be any commercial use following your acquisition?

se2020

masonic said:

A penalty free LISA withdrawal must be used towards a property that is residential. If it doesn't meet the criteria for SDLT, then that would be a concern. What about the mortgage provider? Are they offering a standard residential mortgage for the property? Will there be any commercial use following your acquisition?

I do not anticipate any problems with the mortgage?

My thinking was land purchase for cash.

House and Garden as a purely residential purchase with mortgage amd deposit. 

Land is currently agricultural.  Intention would be to keep horses for which I would seek planning for change of use (after purchase)

I would exchange contracts on the house first so I would be expecting the mortgage lender to accept that on a regular residential basis ?

I do not know if a linked transaction to a cash purchase of the land will cause an issue with the mortgage lender?
I can't see any reason why they would need to take that into account?
I will end up owning 2 titles via transfer of part 

masonic

Then I am confused as to how the initial property purchase is being considered mixed use for SDLT.

se2020

masonic said:

Then I am confused as to how the initial property purchase is being considered mixed use for SDLT.

So am I !
Apparently,  they are linked transactions (same buyer, same seller) for sdlt reasons.
One residential,  one land, so claassed as mixed use.
Therfore,  FTB relief for SDLT is not claimable. 

masonic

It will come down to the solicitor and mortgage provider's view. If both consider it a residential purchase then I doubt there will be any comeback, but presumably the solicitor would have to take an inconsistent approach to LISA and SDLT for that to happen.