Lifetime ISA - Buying House (not first time)

MickDesigner90

Hi,

first post as I’m struggling to find some accurate info, I used to own a property - subsequently have been divorced, sold the family home and have been stuck renting for a number of years.

I’m looking into how I can get back onto the property market and out the rent race, and noticed the Lifetime ISA can be used for buying a house but states “first time buyer only”.

Now I’m not a first time buyer as such but I don’t currently own a property?
Does this mean I could not benefit from this ISA?

Seems like there is no help or assistance once your off the property market to get back on!

TIA,
Mick

masonic

You must never have owned residential property anywhere in the world.

se2020

I'm not sure how helpful the LISA is anyway.
The maximum bonus is £1000 a year and property prices around my way have been rising by far more than £1k a year since I opened mine. 

I have had my Lisa for 8yrs and maxed it out each year.
I would have been far better off buying a cheaper house 8yrs ago and selling it for a bigger one now.

Obviously every little helps but, if I bought today, the Lisa bonus would only account for around 9% of the deposit needed to purchase so not a major game changer.

masonic

It's not generally advisable for anyone to delay a purchase after the point they can afford to proceed. The LISA scheme was intended to shorten the time a FTB needed to save to reach the bare minimum deposit needed, while also inflating property prices for the benefit of sellers. Each £1,000 given to a FTB allows them to pay an additional £10,000 for a property with a 90% LTV mortgage.