One of the key benefits of a Lifetime ISA (LISA) is the ability to use your savings, along with the government bonus, to purchase your first home. Here's everything you need to know about making a withdrawal from your LISA for this purpose.
To withdraw your Lifetime ISA funds for buying your first home, you must meet the following conditions:
Condition | Information |
Account Age | Your Lifetime ISA must have been open for at least 12 months before you can use the funds to purchase a home. If your Lifetime ISA has been open for less than 12 months, you can still withdraw your money, but an early withdrawal penalty may incur. |
First Time | You must be a first-time buyer, meaning you have never owned a property in the UK or abroad. The Lifetime ISA purpose is to help people save for their first home. |
Value | The property you intend to purchase must cost £450,000 or less. |
Location | The property must be located within the UK. |
Purpose | You're not going to rent the property (with a buy-to-let mortgage). |
Solicitor | You're buying with the help of a solicitor or a licensed conveyancer to handle the withdrawal process. This is a requirement set by the UK government to ensure that the funds are used specifically for the property purchase. |
The Process
Investor (User)
The investor form must be completed by the investor (user) to provide their personal details, information about the property they are purchasing, and a signed confirmation that the withdrawal will be used for an eligible first home. The information provided must match the details on the conveyancer form to ensure accuracy and compliance with Lifetime ISA rule 7.
Solicitor / Conveyancer
The conveyancer form must be completed by the solicitor or conveyancer to confirm their legitimacy, the property details, and provide the conveyancer's bank details for the funds transfer. As this form contains sensitive financial information, it should be handled with caution to protect against fraud.
Once both forms are completed, our team will initiate the process and will keep you updated on every step of the process.