Buying your home with the new Lifetime ISA.
The Lifetime ISA was launched on 6th April 2017. Their purpose is to help first time buyers to save for their first home and to replace the Help to Buy ISA, which is being phased out in November 2019. Unlike the Help to Buy ISA, which you have to close when you purchase your property, the Lifetime ISA can remain open and help you save for your retirement.
So here are 10 keys facts:
- You have to be between the age of 18 and 40 to open the ISA.
- The Government will give a 25% bonus on savings up to £4,000 a year. This means you could receive up to a £1,000 bonus a year up to £32,000 in total.
- The bonus will be added direct to your ISA and therefore can be used as part of your deposit. Not sent to your Conveyancer like the Help to Buy ISA.
- You must have your account open for at least a year before you purchase your new home.
- You must purchase your new home within 90 days of withdrawing your money.
- If your purchase falls through, you can transfer money back to your ISA without penalties.
- You can transfer your Help to Buy ISA to a Lifetime ISA.
- If you inherit a share of a property you are not classed as a first time buyer.
- Your first home must be a residential property in the UK and be no more than £450,000
- Once you have purchased your first property, you can keep the ISA open to save for your retirement.
Although we as a firm of solicitors cannot advise upon investments and cannot tell you whether a LISA is an appropriate vehicle for you in your circumstances, we are more than able to handle purchases from First Time Buyers for Residential Property in Leicestershire and our conveyancing team in each of our five offices will be able to assist you in your purchase. If you require investment advice on the Lifetime ISA, we can recommend FCA Regulated Advisors to provide that advice.
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