Can you use a Lifetime ISA to buy an apartment?

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