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I am buying half of a flat. Can I use my lifetime ISA without penalty as my share is less than £450k?

15 November 2021

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Question by Iain

If I am buying 50% of a flat that costs £500k i.e. I am paying £250k, can I use my lifetime ISA without penalty as my share is less than £450k. Thanks


Answered by James Greenly

Hi Iain

My understanding is that the total property price cannot exceed £450k, regardless of how much you 'share' is.

Here is more information from the official government Lifetime ISA website: https://lifetimeisa.campaign.gov.uk/#withdrawing_for_your_first_home

The information from this website says "If you’re buying with someone else and they are also a first-time buyer, you can put both bonuses towards the purchase of your home. The price of the home still mustn’t be more than £450,000."

I hope that helps.

Best

James

Answered by

James Greenly

Chartered Financial Planner

I am a Chartered Financial Planner at Capital Asset Management, a boutique financial planning and wealth management firm based in the City of London.