What can’t Lifetime ISA funds be used for?

Your Lifetime ISA balance can only be used towards your exchange deposit, or the completion of your qualifying property purchase. However, it’s worth noting that if you use any LISA funds towards your exchange deposit, the completion of your purchase must then follow within 90 days, or your solicitor/conveyancer will need to request an extension of up to 90 days to avoid returning the funds to your LISA.

The Lifetime ISA can’t be used towards buy-to-let properties, as you must intend to live in the property as your primary residence. You also cannot use the funds to purchase a house boat or mobile home, as your purchase must have a ‘legal interest in land’ according to HMRC.

Your LISA balance cannot be used for solicitor’s fees or the costs of furnishing your property.

If you are looking to use funds in your LISA for a purpose other than exchange or completion of a qualifying property purchase, you’ll need to make a penalty withdrawal in the app in Settings > Withdraw, where the 25% penalty will apply to the amount you withdraw.

If you’re unsure whether your purchase will qualify, we’d recommend contacting your solicitor who will be best placed to confirm. Our team is also happy to help – just drop us a message via the in-app chat, or by emailing support@moneyboxapp.com.