Worried you’re not making use of government schemes to help towards your home purchase?Here are some of the key facts around utilising the Lifetime ISA (LISAs) scheme.
Who can use a LISA?
You can use a LISA to buy your first home or save for later life but you must be aged 18 – 39 to open one.
Monthly contributions
Savers can pay in up to £4,000 per year until they’re 50 but you must make your first payment into your LISA before you’re 40. The LISA limit counts towards your annual (£20,000 in 2021 to 2022 tax year) ISA limit. Funds can be held in cash savings or stocks and shares or a combination of both.
Government top up of 25%
The government will top up your savings by 25% (up to £1,000 per year).
Withdrawing money from your LISA
You can withdraw money if you’re buying your first home (£450,000 max price), aged 60 or over or terminally ill with 12 months or less left to live.There’s a 25% withdrawal charge if you withdraw cash or assets for nay other reason.
Using your LISA as a first time buyer (FTB)
To qualify to use your LISA savings towards your first home all of the following must apply:
- The property costs less than £450,000
- You buy the property at least 12 months after making your first payment into your LISA
- You use a conveyancer or solicitor to act for you (funds will be paid direct to them)
- You’re buying with a mortgage
A couple can both use their Lifetime ISA savings towards their first home purchase together.
*All information up to date at time of writing, speak to your advisor for specific advice for your own circumstances.
