LISA and Buy to Let

Uffy2001

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!

eskbanker

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

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

You will not be a first time buyer if you’ve bought a property.

eskbanker

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

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.

eskbanker

Uffy2001 said:

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.

I think you may have missed the point - I understood your OP, but was emphasising what could be considered an inconsistency, i.e. that purchasing a BTL can't be done with a LISA (accepting this wasn't what you planned) but that buying one then prevents you from using the LISA thereafter....

jimjames

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

Grumpy_chap

Duplicate thread
https://forums.moneysavingexpert.com/discussion/6595101/lisa-and-buy-to-let#latest

masonic

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.