How to buy a home with a Lifetime ISA | Millennial Money
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- Опубликовано: 3 сен 2022
- In this Millennial Money video, Lauren shares how she bought her first house with a Lifetime ISA.
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Very helpful. Thanks
You're welcome - glad you found it helpful! 😊
Excellent video, very informative, thank you very much !
Glad it was helpful!
Great content looking forward to getting a property soon, may you kindly share the step by step on opening a LISA and the broker you used.Thank you
Hi Charles,
I shared the steps of my house-buying journey in the following series of videos - ruclips.net/p/PLI23TAO7CN2ZUwI7CbxWFlbJK4jrm0mxQ
The Lifetime ISA and broker you choose can vary on a number of factors. We share tips on finding the best LISA and mortgage broker in the following articles. moneytothemasses.com/saving-for-your-future/compare-the-best-and-cheapest-lifetime-isa and moneytothemasses.com/owning-a-home/mortgages/the-7-best-questions-to-ask-a-mortgage-adviser
If I have a H2Buy and my partner has a LISA can we get the bonus of both?
Thanks for this great video. Can you please suggest a good platform ? Also if someone is planning to buy house after 7 years, would you suggest to go ahead with Stocks & shares LISA instead of Cash LISA? Thank you.
Hi Viresh,
If you are looking for a Lifetime ISA you may find the following article useful, where we compare the best cash and stocks and shares LISAs - "moneytothemasses.com/saving-for-your-future/compare-the-best-and-cheapest-lifetime-isa"
Additionally, if you are considering opening a Stocks & Shares LISA it is important to note that an investment Lifetime ISA carries more risk than just holding your contributions in cash as your investments can go down as well as up and, therefore, should be held for a minimum of 5 years. The following article compares the different types of LISA and may be able to help you decide which type is best for you - moneytothemasses.com/saving-for-your-future/investing/lifetime-isas-explained-are-they-the-best-way-to-save
Hi, does the whole value of the deposit have to be made up by the funds of the lifetime ISA eg i have £10,000 in the ISA is my deposit limited to this or can I use other savings to top up the deposit, thanks great video. :)
Hi Billy,
No, your house deposit is not limited by your LISA funds, you can use additional savings to top up your deposit amount.
Hi Lauren, thanks for this very informative video. I just want to clarify your response here and what you've said in the video. Did you mean you and your partner have separate LISA and have use both LISA to purchase your first home? can we still do the same thing if i am married? and how can the government check if you have other a home at other country? does a land (inherited) or condomium unit count as home?
Hi, yes we each had a Lifetime ISA and used this towards the purchase of our home. If you and your partner are both first-time buyers then you can each have a Lifetime ISA and use this towards the purchase of your first home.
According to the UK government, “A first-time buyer is someone who does not own, and has never owned, a home anywhere in the UK or the rest of the world.” If you earn an income from property or land abroad you will need to declare this to HMRC for tax purposes. If you are unsure as to what is considered property abroad it is best to seek advice.
Is there a condition on the downppayment / mortgage , say I wanna mortgage only 10% of the value of the property can I still use the lifetime isa to buy the house ?
Hi Giorgio,
When using a Lifetime ISA to purchase a property, the property you buy must be purchased with a mortgage and the funds in a Lifetime ISA (including the bonus) can be used towards an exchange deposit. More information on using your Lifetime ISA to buy a property can be found here lifetimeisa.campaign.gov.uk/
Hiya..Thank you very much for this video. It's really helpful. Can a skilled worker visa holder open a LISA account? Does the 25% bonus considered as public fund? Thank you.
If you have a visa ,that means you pay taxes ,because of it you’d receive the 25% taxes back too
@@brandonrecording2384 Thank you.
450,000 max property price doesnt get u far anymore. Feel like there should be a different bracket for London
If I use my lifetime ISA money for a house deposit can I also contribute additional savings E.g. from my bank account towards the deposit? Or does the deposit have to solely come from the lifetime ISA?
Hi, yes it is possible to use savings towards your house deposit as well as the Lifetime ISA.
Thanks for the info. Do you know if you could put your ISA for a first home that your buying with a partner who’s owned before? So it’s your first home but not his and he doesn’t have an ISA.
HI, if you are buying a home someone who has owned a property before you can still put your own bonus towards the price of the home you’re buying together. More information on the LISA terms can be found on the government website - lifetimeisa.campaign.gov.uk/#withdrawing_for_your_first_home
@@Moneytothemasses thanks, that’s really interesting
Can I add extra money saved in addition the money in the LISA towards the deposit? With only being able to save £4000 a year, it would take s long time to sata full deposit unless we can save extra money towards it in another account. Many thanks x
Yes you can
Hi if you saved in your liferime ISA for 3 years (36 months) did your bank/ mortgage provider have to go through 36 months of bank statements, payslips and financial record checks before approving your mortgage application or did they go through 6 months??
Or 3 months??
Hi. No. We had to provide proof of how much was saved into each of our Lifetime ISAs in total, not a full breakdown of savings over 3 years. A mortgage provider is only likely to ask for proof of income and expenditure via your payslips and bank statements going back 3 to 6 months. Regards
Hi. May I know which Lifetime ISA provider did you use? Thank you
Hi, here are a list of the best lifetime ISAs out there - moneytothemasses.com/saving-for-your-future/compare-the-best-and-cheapest-lifetime-isa
Can you contribute to both lifetime ISA and a regular ISA within a tax year , or will that affect my tax free status ? Considering that you can contribute £20k tax free per year.
Yes people typically max the lifetime isa first due to the 25% return (up to 1k profit) then max out the 20k stocks and shares isa
Hi,
Is it allowed in the future to sell or rent the house? Like living in the house for 10 years then u decide to sell it.
Yes, if you own the property then you are free to do as you please.
Hi there ! On the government website it says that we’re two people want to contribute towards the same mortgage via a lifetime ISA the second person would have the 25% taken off. Did that happen to you two as well ?
If two people are first-time buyers and purchasing a home using a Lifetime ISA both bonuses can be put towards the purchase of the home. However, if you are buying a home with someone who has owned a home before they will not be considered a first-time buyer but you are still able to put your own bonus towards the house purchase. More information can be found here - lifetimeisa.campaign.gov.uk/#withdrawing_for_your_first_home
Hi Lauren, thanks for this very informative video. I just want to clarify your response here and what you've said in the video. Did you mean you and your partner have separate LISA and have use both LISA to purchase your first home? can we still do the same thing if i am married? and how can the government check if you have other a home at other country? does a land (inherited) or condomium unit count as home?
Hello, so if you and your partner have 2 different accounts, can both of them be used to buy one home?
yes you can
What if the property value exceeds 450000 £, Can I still use my Lifetime ISA funds to purchase my first home ?
Hi Sidhant,
The property you buy with your Lifetime ISA must be under £450,000 to qualify for the government bonus. You can still use the money in your Lifetime ISA to buy the home however you will be charged a 25% penalty fee as you are not meeting the requirements of a Lifetime ISA when buying your first home. This, therefore, means you will lose the government bonus and a percentage of your contributions. If you did not want to pay a penalty you need to purchase a home below the £450,000 threshold or keep the money in the account towards retirement.
Can an individual have a help to buy ISA and a Lifetime ISA?
Yes. But you can only use one for the goverment bonus. Best to move balance from H2B in to LISA account. You can save more per year in LISA vs H2B. Hope that helps.
Can my wife and I both have one between us and use that to buy our first home?
You can’t share a Lifetime ISA, but you can have one each (and both qualify for the government bonus) and use them to purchase your first home
@@Moneytothemasses That's what I meant actually! Thank you for the clarity
Can I purchase a home with my isa for 450,000 outside of London?
Yes, the £450,000 limit applies to houses across the UK.
Is the 25% bonus every year?
No the 25% is on the amount paid in each tax year up to a total bonus of £1,000 each tax year
@@Moneytothemasses Thank you for getting back to me; I’m not sure I understand though 😭 are you saying for example, let’s say in one tax year I put in £4000, I’d get a £1000 back for that tax year. Then if I were to put another £4000 in the tax year after, I could get another total bonus of £1000 bonus? Or is the bonus just a one off thing?
@@zinabstarit’s not a one off thing, you’d get the 25% bonus for each tax year you contribute. So with your example, you’d get an additional £1000 bonus for the next year if you saved £4000.l that year. That’s my understanding of it
I plan to invest £1000 into my lifetime ISA for buying house monthly out if my income. Does this mean I cannot save £12,000 each year into my lifetime ISA? How would I invest the rest of the money into savings if I can only invest £4,000 per year?
You can only save a maximum of £4,000 a year into your Lifetime ISA and so anything that you save over this amount will need to be saved elsewhere, for example in a savings account. We list some of the best in our best savings account article that is updated weekly. moneytothemasses.com/saving-for-your-future/savings-best-buy-tables/what-is-the-best-savings-account