LISA and Buy to Let

Hello fellow MSE members!

So ive done a bit of googling and i haven't found any real answers to this question. 

I have a LISA and im building it up to get a strong deposit for my first home but recently I've also starting to look at getting a mortgage for a Buy to Let property to get into the rental market. 

My question is, if i get a buy to let mortgage and property with my cash will it effect my LISA (im not going to use my LISA or any cash thats in it). My understanding is it should not as this would be a property used for rental and not as my first home. 

Does anyone know the answer to this or has done it? 

Thanks!

Comments

  • eskbanker
    eskbanker Posts: 36,928 Forumite
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    If you buy a BTL property then you're no longer a first time buyer so wouldn't be eligible to use your LISA for any subsequent property purchases....
  • Uffy2001
    Uffy2001 Posts: 4 Newbie
    First Post
    Really? i thought the wording on this was specific to first time buying a first residential home (a property you plan to live in) not first time buying a property.
  • wjr4
    wjr4 Posts: 1,299 Forumite
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    You will not be a first time buyer if you’ve bought a property.
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
  • eskbanker
    eskbanker Posts: 36,928 Forumite
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    Uffy2001 said:
    Really? i thought the wording on this was specific to first time buying a first residential home (a property you plan to live in) not first time buying a property.
    You can't use a LISA to support the purchase of a property that you don't plan to live in, but if you do buy such a property then that excludes you from using a LISA to buy a home.  The obvious solution is to buy a home (supported by LISA) before becoming a BTL landlord!
  • Uffy2001
    Uffy2001 Posts: 4 Newbie
    First Post
    eskbanker said:
    Uffy2001 said:
    Really? i thought the wording on this was specific to first time buying a first residential home (a property you plan to live in) not first time buying a property.
    You can't use a LISA to support the purchase of a property that you don't plan to live in, but if you do buy such a property then that excludes you from using a LISA to buy a home.  The obvious solution is to buy a home (supported by LISA) before becoming a BTL landlord!
    As i stated in my OP i will NOT be using the LISA on a BTL property. Again, i thought the wording was specific around it being it being used as your first property used as a Home not first property full stop - There is a difference, but thank you for replying anyways.
  • jimjames
    jimjames Posts: 18,549 Forumite
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    edited 17 March at 4:20PM
    Uffy2001 said:
    Really? i thought the wording on this was specific to first time buying a first residential home (a property you plan to live in) not first time buying a property.
    Not just a BTL, owning a property anywhere worldwide even as a 1/8 share excludes you from using the LISA too
    https://forums.moneysavingexpert.com/discussion/6594660/lisa-and-owning-a-house-abroad
    Remember the saying: if it looks too good to be true it almost certainly is.
  • masonic
    masonic Posts: 26,817 Forumite
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    edited 17 March at 6:29PM
    Uffy2001 said:
    Really? i thought the wording on this was specific to first time buying a first residential home (a property you plan to live in) not first time buying a property.
    The wording is specific. To qualify for a penalty free withdrawal to buy your first residential property, you must never have held a legal interest in residential property anywhere in the world. If you are planning to purchase and let a commercial property (with no residential areas), then this would not stop you from using a LISA in the future. Whereas buying a residential property would disqualify you as an existing owner of residential property. As eskbanker has pointed out, if you simply buy your own home before venturing into property investment, then this would also avoid you being disqualified from using your LISA for this purpose.
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