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    • Home • Advice • Common questions

    Can you use a Lifetime ISA to buy an apartment?

    16 November 2021

    Question by Leah

    Can you use a Lifetime ISA to buy an apartment?

    Answered by Boring Money

    Hi Leah,

    Yes, you can use your Lifetime ISA (LISA) to buy an apartment as long as all the other conditions are all met:

    • The property costs £450,000 or less

    • You buy the property at least 12 months after you make your first payment into the Lifetime ISA

    • You use a conveyancer or solicitor to act for you in the purchase - the ISA provider will pay the funds directly to them

    • You’re buying with a mortgage

    The key thing is that getting a mortgage for an apartment can be a little more tricky than buying a house, and there are some things you need to watch out for.

    • The apartment should be leasehold and not freehold

    • Avoid properties above businesses that could pose a fire risk (fast food / hair salons etc.)

    • The length of the lease remaining - some lenders need there to me a minimum number of years left (typically 80 years or more at start of mortgage or 20/30 years left after your mortgage term ends) which may limit your choice of lender or mean you need to have a shorter mortgage term (and higher monthly payments)

    • If there is a service fee each month, this plus the ground rent will be taken into account when calculating your mortgage affordability

    Hope this helps - happy house hunting!

    Claire

    Answered by

    Boring Money

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    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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