Could you benefit from a Lifetime ISA?
What could be better than boosting your savings by further 25% when you are planning to buy a house? Could you benefit from a Lifetime ISA?
Here’s a couple of facts about a Lifetime ISA (LISA):
A Lifetime ISA can be opened by anyone aged over 18 and under 40
Savings made before 50 attract a 25% bonus from the Government (capped at £1000 per year).
This bonus is paid monthly, so interest can be earned on the bonus too.
A maximum of 4000 can be saved per tax year with no monthly limit.
Savings can be used to buy a first home, to provide benefits in retirement from age 60, or in case of a terminal illness with less than a year to live.
If savings are withdrawn for any purpose other than those stated above, a 25% charge is applied.
If you have both a Help-to-Buy and Lifetime ISA, the benefit from only one of these can be used for a first home purchase.
To be able to buy your first home with LISA savings and bonus you must meet the below conditions:
the property costs £450,000 or less
you buy the property at least 12 months after you make your first payment into the Lifetime ISA
you use a conveyancer or solicitor to act for you in the purchase
you’re buying with a mortgage
If you have any other questions about buying a house, get in touch with us!