A LISA can be opened by anyone aged between 18 and 39. You can save up to £4,000 a year in it, towards your first home or retirement, and the UK Government then tops this up with a 25% cash bonus of up to £1,000 a year.
There are a few rules to be aware of when withdrawing the money – if you don’t buy your first property or draw the money down after turning 60, you will have to pay a 25% penalty.
For buying your first home, the price of the property has to be £450,000 or less, and you have to wait at least 12 months from making your first LISA deposit before buying. You have to buy with a residential mortgage (so you can’t be a cash buyer and the mortgage can’t be a buy-to-let deal).
Check out the video where Sasha Yanshin cover’s some other important considerations and useful things to know about Lifetime ISA accounts.
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