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Cracking the Code on the Lifetime ISA
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One of the most common hurdles first-time buyers face is saving for that all-important deposit. A Lifetime ISA could help buyers to purchase their first home or even downsizing to a new home, but what is it and what are the eligibility requirements?

 

What is it?

The LISA offers a 25% government bonus on contributions up to £4,000 a year, essentially gifting you £1,000 for your future home. You can also use this for retirement savings.

But it's not just first-time buyers who stand to benefit. Downsizers seeking to release capital tied up in their homes could utilize the LISA to bridge the gap between their existing property and their dream retirement bungalow. It offers flexibility, allowing withdrawals for any property purchase, not just first homes.

 

You can withdraw from your Lifetime ISA if you’re:

  • Buying your first home
  • Aged 60 or over
  • Terminally ill with 12 months to live

One thing to note is that there is a 25% penalty on withdrawals for anything other than retirement or a first home. This can be a deterrent for those unsure of their future plans.

 

Is it right for you?

For young, disciplined savers with a clear first-home goal and retirement plans on hold, the LISA could be a valuable steppingstone. However, for those with less concrete plans or higher incomes, there might be better investment options available.

 

 

Future homeowners, are you ready to unlock the LISA's potential? We can help you navigate the twists and turns of the property ladder. Let's start your journey, call us on 0345 2185211 today!

 

 

The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
 

Just Wealth is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

 

Approved by The Openwork Partnership on 21/12/2023

 

Figures from - https://www.gov.uk/lifetime-isa