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 is opened for less than 12 months, you can still withdraw your money, but 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
Step 1: Open your Lifetime ISA account in the app
Step 2: Press the Withdrawal button
Step 3: Select Buying your first home
Step 4: Contact our Customer Success team through here. Open the chat and select the ticket type Withdraw from Lifetime ISA.
Step 5: Complete all the details and select as reason First-time Home Purchase
Step 6: Our team will check your account for any potential issues and will get back to you.
Step 7: Our team will provide you with some forms that you need to send to your solicitor/conveyancer and further instructions on how to proceed.
Step 8: Your solicitor/conveyancer needs to send the forms back to Plum and we will start the process along with HMRC.
Please note that our operations team will keep you updated constantly regarding the withdrawal of your funds and the whole process in general.