Using a Lifetime ISA for your first home
What type of property can I buy with a Lifetime ISA?
If you use the Lifetime ISA to save for buying your first home, it must be:
- £450,000 or less
- your first property, or interest/share in a property in the UK
- for you to live in, i.e. it can’t be a buy-to-let property.
When can I access my savings to buy my home?
It must be at least 12 months since the first contribution was made to your Lifetime ISA before you can withdraw funds from it to buy your first home.
I want to buy my first home within the next three to five years. Should I open a cash, or stocks and shares, Lifetime ISA?
The type of Lifetime ISA you choose will depend on your attitude to risk and reward.
However, as investments are for the longer term, if you plan to buy your first home within three years you should probably open a cash Lifetime ISA.
If you’re planning to buy your first home in more than three years time, you may want to consider a stocks and shares Lifetime ISA. Investing in stocks and shares offers the possibility of better returns in the long run and could help you reach your goal faster. However, remember that your capital is at risk and the value of your investment can go down as well as up.
Can I use the funds in my Lifetime ISA as a deposit for a shared ownership property?
Yes you can, but the overall value of the house can’t exceed the £450,000 limit.
I already own property in another country — can I use the Lifetime ISA to buy my first property in the UK?
No. If you already own, or part-own, property anywhere else in the world you can’t use the Lifetime ISA to save for a deposit to buy property in the UK.