HELP- LISA

roseAHJ

Hello everyone,

 my partner and I are seeking some advice regarding our Lifetime ISA (LISA) funds. We initially opened these accounts to save for a mortgage. However, we've recently been told that we can get some land gifted by my father on which we plan to build our first home. We are now exploring options for accessing our LISA savings to contribute to the building costs without incurring penalty charges. Does anyone have experience with this situation or know of potential solutions?

Thanks in advance!

Mark_d

I believe you need to be buying a property with a mortgage.  You can't simply use the government bonus if you're buying a few bricks!

ACG

I dont think it can be used to purchase land either. I think it has to be an actual residential home.

But I could be wrong. 

MWT

This may help...

https://forums.moneysavingexpert.com/discussion/6557745/lifetime-isa-for-self-build-of-first-home/p1

se2020

You need to be buying with a mortgage to use the Lisa.
You also need to be a first time buyer so you can't own the land before getting the mortgage. 

Self-build mortgages can be used with the Lisa and some of those let you use the 'undervalue' of the land as part of the deposit so you could buy the land from dad for £1

The plot will probably already need planning permission to satisfy the lender and you'll have to pay out for the quotes for plans/build costs/services up front to show them as well.
Unless you have high income or loads of assets you'll probably need about 50% of the costs yourself but you can include the Lisa funds in that.