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Can I use a Lifetime ISA towards buying someone out of a house?

18 October 2021

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Question by Hannah

Can I use a Lifetime ISA towards buying someone out of a house - putting my name on instead? With my partner and first house.


Answered by Justin King

Hi Hannah,

You can make charge-free withdrawals from a Lifetime ISA if the funds are going towards the purchase price of your first residential property in the UK. This includes when you make the purchase with an individual who is not a first time buyer.


You can make one single or several charge-free withdrawals from a Lifetime ISA for a first time residential purchase if:
- the purchase price of the residential property is £450,000 or less
- the withdrawal is less than the purchase price of the residential property
- the purchase is expected to complete within 90 days of withdrawing funds from a Lifetime ISA
the Lifetime ISA investor will live in the property as your main residence
- the investor will purchase the property with a loan taken as a charge over the property for example a mortgage (excluding a ‘Buy to Let Mortgage’)
- when making their withdrawal, it’s at least 12 months since the investor made the first payment into the Lifetime ISA.

Purchasing a residential property
You must purchase a residential property that includes a ‘legal interest in land’.

Lifetime ISA investors can also purchase a residential property either:
- jointly with other purchasers, whether or not the other purchasers are also first time purchasers (there is no limit to the number of individuals who can purchase a single residential property together)

- as a joint owner with another person who may already own the property

On completion of the purchase, the Lifetime ISA investor must occupy the property as their only or main residence.

Hope that helps, a conveyancing solicitor will be able to confirm.


It must always be the investor’s intention to occupy their property as their only or main residence when they are able to.

Answered by

Justin King

Chartered Financial Planner

I am a Chartered Financial Planner specialising in helping people retire successfully. I set up MFP Wealth Management, our family-run retirement planning firm in Mudeford, Dorset over 10 years ago to help people who have worked hard, enjoyed financial success, and are looking to reap the rewards as they approach retirement.