Lifetime ISA explained: Is it worth it?

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Lifetime ISA explained: Is it worth it?

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Күн бұрын

The Lifetime ISA, or LISA, will give savers and investors a 25% bonus on deposits, giving up to £1,000 in free cash each year.
Sounds good right? Too good to be true? There must be a catch right? Well, yes. But as long as you use the cash towards buying your first home or for retirement a Lifetime ISA can be a better option than alternatives.
In this video I've shared what a Lifetime ISA is and how it works, who can get one and the restrictions on use - such as a 25% penalty to take the cash out for any other reason.
Plus I've compared them to Help to Buy ISAs and Pensions to help you decide if they're right for you.
2023 Best LISA update • The Best Lifetime ISAs...
W A T C H N E X T
- ISAS EXPLAINED
• ISAs explained
- SHOULD YOU OVERPAY YOUR MORTGAGE?
• Should you overpay you...
- THE BEST SAVINGS ACCOUNTS
• Best UK Savings Accoun...
#LifetimeISA #LISAvsPension #HelpToBuyISA
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A B O U T A N D Y
Andy Webb is a money blogger and journalist. He runs the award-winning website Be Clever With Your Cash, hosts the Cash Chats podcast, presented Channel 5’s Shop Smart Save Money and writes every month for Reader's Digest. Andy also founded the community ukmoneybloggers.com.
DISCLAIMER
Content in these videos does not constitute regulated financial advice. Any offers mentioned were correct at the time of filming.

Пікірлер: 212

@YakobtoshiNakamoto 3 жыл бұрын

I've just opened a LISA. Looking to buy my first home in the next 2/3 years so seems like a no brainer!

@BeCleverWithYourCash 3 жыл бұрын

Good luck! Which one did you go for?

@YakobtoshiNakamoto 3 жыл бұрын

@@BeCleverWithYourCash Cheers! Went for the Moneybox one. Seems like one of the best out there atm.

@spencerosei2616 2 жыл бұрын

Me too

@ElliottForex 2 жыл бұрын

How's it going with your LISA?

@hashtag3969 Жыл бұрын

Is it lifetime cash lsa to save for deposit trustworthy! I want to say when you want to take your money out is the solicitor asking for loads of things to prove?

@paul8513 2 жыл бұрын

Great video!!! I was going to plow £20k into a stocks and shares ISA next year but now I will definitely be putting £4k in a LISA then probably invest in something very safe like S&P 500 then forget about it until I’m 60! Thanks so much for this info!! Just wish the allowance would go up!

@paul8513 2 жыл бұрын

@@walterpalmer6312 Surely you mean 500 baskets?

@bryce-bryce Жыл бұрын

Would not rely on 100% US. Better go for MSCi world or FTSE all world

@jonathanrichmond9119 2 жыл бұрын

Other reasons to invest in to a Liftime ISA is if you are already contributing the full annual allowance to your pension or if you are at risk of breaching the pension lifetime allowance. It can also be part of an early retirement strategy to supplement income until you can draw your state pension.

@minaikegima5430 Ай бұрын

Thank you so much for this video. It answered all my questions that I have been wanting to ask and explained in such simple terms for anyone to understand

@viamedia2704 3 жыл бұрын

I should add that getting a Lifetime ISA might be a pretty bad idea if you're thinking of moving abroad down the line. While technically you can keep your Lifetime ISA (just like any ISA) while living abroad provided you don't contribute to it during your absence from the UK, it seems that most Lifetime ISA providers actually opt to close and liquidate your LISA if you stop being a UK resident. (I suspect they just want to save themselves performing the due diligence that you're paying any taxes you owe abroad etc.) This will obviously count as unauthorised withdrawal from your account so you'll get hit by that sweet 25% penalty - and that just because you decided to move to Spain or sth. Also, down the line it's not unthinkable that the Treasury might decide to impose some withdrawal charge on the LISA balance if you decide to retire abroad, even if you're following all the rules and only accessing it after the age of 60. After all that 25% bonus came from UK taxpayers money so the Treasury might not be comfortable with it leaking into some other economy.

@ashwinkumarraghavan50 Жыл бұрын

What if you invest money and move the funds to buy a house and liquidate it and then sell the house or mortgage and then take the cash abroad?? Am i missing something?

@sultanalbinali4033 11 ай бұрын

I suppose that theoretically would work but to my understanding, when buying a house, its directly done from LISA to solicitors (or so). Which might prompt you to check the fine print of the contracts. Its possible (i honestly dont know) that the gov will still take their money if you sell the house within certain period. Or they prevent you from selling it or using it commercially for a period of time. You must do your due diligence.

@OngoGablogian185 11 ай бұрын

I'm non-resident now and guessing I'm pretty screwed for doing anything. I can't open any ISA, it seems.

@AaliyahRash89 3 ай бұрын

No doubts , A good way of growing and saving your money is through investing . You don't need to have much before you can invest. "That little money you have now can make you millions if you invest it wisely". I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made

@stephcoathupe 3 жыл бұрын

This was SO helpful, thanks so much for spelling it all out!

@Zaaz-km3zd Жыл бұрын

This is a great idea for first time buyers. Unfortunately living in London, 450k will not get u a family home 😢

@Savvyriri 5 ай бұрын

Buy an invest Buy to let you can do that as a FTB

@jaks2706 2 жыл бұрын

I’ve been contemplating to open a LISA, Great video

@kiank3559 3 жыл бұрын

Thanks for the great video as always. The channel is growing fast. Keep it up

@BeCleverWithYourCash 3 жыл бұрын

Thanks Kian!

@tomodwyer877 2 жыл бұрын

Brilliant explanaition, thanks Andy. Needed it just before I started a research project!

@grottonisred6541 3 жыл бұрын

This is brilliant...just the facts and easily understandable....

@BeCleverWithYourCash 3 жыл бұрын

Thanks Grotton, appreciate you taking the time to comment

@DJ-mr6um Жыл бұрын

Not me being from the poorest part of the South East, having worked my arse off to get out of poverty, to then give myself a financial education and think about saving for a mortgage - to find out that most of the house prices around here are £450k+.

@filipdaniowicz7666 2 жыл бұрын

Very helpful video thanks Andy !

@strictlyyoutube6881 Жыл бұрын

I think this type of incentive is great for those who live up North. Makes complete sense, but for those who live in London 4k a year is abismal. You wont go anywhere really.

@93ally001 3 жыл бұрын

Really good video, some timeline breaks would have been useful for each section. Great content though 👍

@BeCleverWithYourCash 3 жыл бұрын

Thanks Hamzah! Yeah I’ll try to get back in and add some when I get a chance

@LookingAfterYourPennies 3 жыл бұрын

Another fab video Andy! I’m a big fan of LISAs.

@BeCleverWithYourCash 3 жыл бұрын

Thanks Charlotte!

@sonyh7300 3 жыл бұрын

great video Andy, thank you very much I wish I knew this before because I just turn 40y

@BeCleverWithYourCash 3 жыл бұрын

Ah, just too late!

@danielleirvine1536 3 жыл бұрын

Great video really well explained!! Any advice for someone who wants to build there 1st home? I already have a first to buy isa but I've now decided to build.

@kerryleemarais9233 Жыл бұрын

Really helpful. Thank you

@sender5804 Жыл бұрын

I don't consider LISA same as standard rate pension. who knows what will happen with personal allowance in 20 or 30 years but as it stands state pension would cover it and you would get taxed 15% at least (20% * 0.75) while LISA would be 0%. Salary sacrifice would make the difference smaller though. It does make sense to salary sacrifice the higher tax part of the salary.

@XDI33LE118X 3 жыл бұрын

Defiantly considering starting a Lifetime ISA in the new tax year. Not a home owner but thinking about having a better retirement along with the work based pension and state. Just got no experience in investment, worth the risk, many be

@BeCleverWithYourCash 3 жыл бұрын

Hi PC Newb. First I'd check you are getting the maximum contributions to your pension from your employer. And don't forget the tax relief if you're a higher rate taxpayer. In terms of having no experience in investing... well you're already investing via your pension! You don't need to be active with a LISA - you can just choose a tracker and let it do it's thing, in the same way your pension does.

@rowenako6590 2 жыл бұрын

Very helpful video, thank you very much for clarifying a lot of confusions. Is there any restrictions on what kind of property can be used with this lifetime ISA? I understand that when buying a house, you can get different mortgage deals, is there any restrictions about mortgage package from different lifetime ISA providers?

@jakescottage6893 Ай бұрын

Hypothetically.... my wife and I saved £30,000 in our LISA with hope of buying our first property worth £300,000 but eventually we bought a £250,000 home and put down a 10% which amounts to £25,000. My question is can we access the balance of £5000 at retirement?

@Ultra54762 28 күн бұрын

@vtsormpa 3 жыл бұрын

Thank you Andy!

@BeCleverWithYourCash 3 жыл бұрын

Glad it was helpful!

@monturrahman878 2 жыл бұрын

Problem with pensions are these questions, what is the likelihood of reaching retirement age? How long are do you expect to live to enjoy the pension? Now the age is 68 but could rise to 70. Take your 25% tax free but this hits the retirement pension payments by around 28% annual decrease. The 75% than remains you are drip fed so in order to realise all returns you must survive 12 years taking you to 80! For me unlikely to make it to retirement age.

@petercoombes2416 2 жыл бұрын

Great comparison of Pension and ISA

@BeCleverWithYourCash 2 жыл бұрын

Thanks Peter

@HugglesVlogs 3 жыл бұрын

Which company or bank is best to open a Lisa?

@henrywalker8938 Жыл бұрын

So fully invest into lifetime Isa and stocks and shares isa at the same, got it 👌🏻

@HassanPoyo 6 ай бұрын

Can i supplement a LISA mortgage with my own cash ie if i use £20K from my LISA can I top up another £20K from my own savings and use that to get a deposit or can i only use my LISA to get a deposit on a mortgage?

5 ай бұрын

That’s a good question

@welshtony1 2 ай бұрын

Friend of mine just told me about this. I been looking at investing my money and he said he opened one of these, I'm 38 this year so I'm close to not being able to open one of these. Going by your video I get the feeling you think it's better just to put the extra money directly into the pension rather than using a LISA. I know this video was 3 years ago so maybe worth doing a updated video on this?

@jagtarsandhu1538 Жыл бұрын

Thank you for the video. question : is that I am joint owner of a property. I am no longer a first time buyer.. is thos correct. Thank you for the upload. Very informative.

@Kaye-Gerima 4 ай бұрын

Thank you.

@saranyamani6601 Жыл бұрын

Thank you! This is very informative. Will there be any conflict if My partner and I open different LISA for one property we gonna buy. I mean like, is there any one to one rule between LISA and the property?

@lianroyjbotha3510 6 ай бұрын

Lets say I have decided to withdraw funds from my LISA torwards a deposit for a house, can i continue contributing into it afterwards for retirement? Or once you cash out that’s it?

@spaceboispeed Ай бұрын

Can you use a LISA bonus at retirement if you’ve already used a HTB ISA bonus for buying a first house ?

@SebbySells 7 ай бұрын

Great video! Quick question though can you use the first time buyers option if you have inherited a house? I would assume so as the inherited house wasn't purchased correct?

@browpetj 2 жыл бұрын

Great video, it seems that gov in the UK can chop and change whatever tax they take whenever based on markets, crises etc... Even the withdrawal age can change on these 'instruments' (has happened in the past). Just like any pension type investment augmented (and controlled) by the gov. Nothing is for sure with these funds, you can lose capital left right an centre and rules can change at the drop of a hat! 😮

@adrianojesus9465 10 ай бұрын

One question, the 25% hat Governement gives is montlhy, but the 25% is it on the Full Value you hav einside the LISA at trhe end of the month or on the Value you are putting into the acount? What I mean is: - LISA has £1000 and Govertment will give then £250. End result is £1250 or - LISA has the £1000. You put more £200. Government will pay you 25% on the £200. End result is £1050.

@precociousdeathdealer202 3 жыл бұрын

Also to open investment LISA I have to do it by 39 years old

@markevans7968 6 ай бұрын

Great video Thankyou. One point I have a query on is the part you talk about waying up the odds of investing more into your workplace pension if you’re a higher tax payer or Lisa. If you pay the money into your pension to reduce your 40% tax bill when you draw your pension you will be taxed 20% anyways so for the 4k allowance it’s always better to invest into a lisa? Please correct me if I’m wrong 😬

@Freemind405 2 жыл бұрын

Can i buy a house with my LISA saving, If I am buying a property with my partner who is a second time buyer?

@Annagracie24 2 жыл бұрын

Can you please tell me how long you need to have the house to be your main residence before being able to let it out?

@michaelhall2138 3 жыл бұрын

Can you answer this question.? If you can withdraw a Lisa at 60 tax free then can you then roll that into a personal pension using max limits,ie all of salary,for the next five years.Would this then attract tax relief?- and why has no one ever asked this question before?

@michaelhall2138 3 жыл бұрын

A question.The withdrawal penalty is 25% of money withdrawn.But what does this mean if the stocks and shares Lisa has grown 10 times in value?Does the government take 25% of your profit?

@monturrahman878 2 жыл бұрын

Yes 25% of value of lisa

@karthikjayavel5524 2 жыл бұрын

Hi, This video is helpful. If I own a home in my home country, will I be considered a first-time buyer here in the UK? Am I eligible to open life time isa saving account?

@luisbenjamin7271 17 күн бұрын

where do I open a lifetime isa?

@1234554321marcus1 2 жыл бұрын

Hello, For the 1st property purchase. I would love to get the Lifetime ISA for that purpose.. But I have heard that you can only use the lifetime ISA on a first-time property if you're buying a new build? That not just any property (under that sum gap) as your first-time property?

@jakescottage6893 Ай бұрын

No, you can buy any property doesn't have to be a new build. My friend just bought his first home and it's nothing new.

@doodlefisher234 Жыл бұрын

How does the 25% government bonus work year on year? Say I put £4000 into the account in tax year 1; when this ticks over into the second tax year the government top it up with 25%, so £1000. That's now £5000. If I then make no additional payments into the account in tax year 2, at the end of that second tax year does the government top it up with 25% of the new balance, i.e. 25% of £5,000 (£1,250) or is it still 25% of that original money I paid in, i.e. 25% of £4,000 (£1,000)? Hope this makes sense!

@gaiazoulay9 Ай бұрын

I think the government match the money you put in each year by 25% so the bonus is limited to 1k per year

@Mrmallet777 5 ай бұрын

I just feel like if you're saving for retirement over say 20 years and the interest rate is 4 percent then inflation at 7 percent will eat away at the 25 percent bonus you get?

@AyoObanisola-wo1zn 2 ай бұрын

Hi Andy, if open the ISA life saving account this may 2024, and put a sum of £4000 , which month in 2025 can I put another £4000 to qualify for two bonuses on £8000 in two financial year ,less than 2years. Thanks

@najmasharif9037 2 жыл бұрын

Is it worth getting a stocks and shares isa during a recession? I was planning to get one this year but now I’m worried it’s a dumb decision

@TravelChimp 2 жыл бұрын

whos the best lifetime isa company which you can do this?

@zayans6091 Жыл бұрын

Amazing video! One question if I move and leave the UK forever (I’m not a passport holder) do I get penalised to get the money out?

@xTenshiAi 9 ай бұрын

yes

@user-sn7sh9zi8r 5 ай бұрын

What if the property is less than 450, less say 100? Any penalties?

@adrianojesus9465 10 ай бұрын

So if I am employed, it is better to get more money into the Pension instead of the LISA???

@deepahmedabadi1560 7 ай бұрын

Can anyone please help guide me whihc provider shall i select for Lisa?.

@Nix2389 3 жыл бұрын

Thank you so much for this video, so so informative! I was wondering if you open a cash LISA and then decide 5 years down the line you want a stock and shares LISA, can you transfer what you already have into a stock and shares LISA?

@akhu3034 3 жыл бұрын

3:11 pretty sure he says you can 🤞

@jakescottage6893 Ай бұрын

No you can't. LISA is for either first time home buying or retirement. Not transferable to stocks and shares because that way you can withdraw it into a liquid cash.

@precociousdeathdealer202 3 жыл бұрын

Bro I have 25 years left in lifetime Isa. I have question regarding lost decade. Say I have opened cash LISA to protect principal and Contribute 4k until I'm 50. What about the decade till I'm 60 where I can only get low intrest rate and no growth

@BeCleverWithYourCash 3 жыл бұрын

Really good question. So in theory you'd be able to open a new Lifetime ISA after 40 for transfers but not put any money into it. But in practice I'm not sure how many offer this. Hopefully it'll change as more people go past 40 and then 50 years old. Also, it's probably best to use a Stocks and Shares LISA for retirement as it's long term - so the gains should be much better than cash LISA

@precociousdeathdealer202 3 жыл бұрын

@@BeCleverWithYourCash bro I watched another UK you tuber who discussed the same topic and concluded investment LISA Is better option for retirement but you're principle is at mercy of stock market

@lisagrundy2403 2 жыл бұрын

It's a shame we can't just keep investing our own money after 50, even without the government bonus. I'm 39 and the no contributions after 50 rule makes me feel like the LISA is a bit limited, even a stocks and shares one. I'm interested what others my age think about this?

2 жыл бұрын

Question: Let’s say my parents give me 20k and I saved some money in Life Isa, am I allowed to use it all together towards Deposit for my First Home ?

@almm2279 3 жыл бұрын

Thank you for your explanation, it is very informative. But I still have two questions: 1) Is the dividend payout from LISA perpetual? Or until 60? 2) Can I reinvest the interest in a LISA account? If yes, does it count for the 4,000 pounds annual allowance?

@HugglesVlogs 3 жыл бұрын

Hi! Thanks for this video. I'm thinking of opening a Lisa account. Any thoughts about doing it with unity mutual?

@seyhuh 7 ай бұрын

does the lifetime isa have to be used to purchase a property that you will live in or can it be used to purchase a home to rent?

@jasminefstr 3 жыл бұрын

Can you use a cash LISA with a help to buy, buying scheme such as part buy, part rent?

@bertbrett64 2 жыл бұрын

Hi Andy, if I make first payment of £4K into a lifetime ISA in March before end of tax year, can I put another £4K in April a month later after the new tax year has started? Then take 25% bonus on the £8K the following March a year later?

@zakbetterknow 2 жыл бұрын

Commented to see answer.

@abyjoseph1462 2 жыл бұрын

Good question... Following

@terricollier4297 Жыл бұрын

I did....

@RobdonInspires 6 ай бұрын

Yes you can

@UltraJamZHD 2 жыл бұрын

can you use LISA AS YOUR DEPOSIT for a home and a cash ISA at the same time ?

@seyhuh 7 ай бұрын

i am going to open a lifetime isa. however i may purchase a house in the next couple of months. does the lifetime isa have to be used as a house deposit or can it simply be used to pay off a large sum of a home after i have bought the house?

@finlay1702 Жыл бұрын

But how do I open one? Can I do it on my phone? Do I need to go to a bank?

@rebeccaenderio4998 4 ай бұрын

Hi! I just downloaded money box for ISA. Do I have to pay a deposit of 1000 pounds? Thank you

@vasealis 3 жыл бұрын

I will be 39 in few months. Now I have a Help to Buy ISA almost 10k in already. Can I open a Lifetime ISA too?

@BeCleverWithYourCash 3 жыл бұрын

You can’t use both the Help to Buy and Lisa for the home purchase. So you’d need to transfer the cash over, but that’s limited at £4K per year. So doing so would delay you buying until at least April 2023 if you wanted the bonus on all that money.

@MD-cm8cb 5 ай бұрын

Does the interest compound? For example, if you put £4000 in the first tax year and get the 25% interest, so £1000 to equal £5000. If you were to put in another £4000 the next tax year, equalling £9000, would you get +25% interest on the £4000 put in that year or the total of £9000?

@BeCleverWithYourCash 5 ай бұрын

The 25% bonus is just on new additions. But you’ll earn interest on all the cash in there at whatever rate the account offers

@Mrmallet777 5 ай бұрын

But the interest won't be as high as inflation so over the 20 years period the inflation will have eaten away at your 25 percent bonus

@TheWealthUniversityOfficial 4 ай бұрын

Can someone do a lifetime isa just before the 6th April and deposit £4k last min and get £1000 Gov bonus.

@davidohara1760 2 жыл бұрын

Can you the money and bonus from a Lifetime isa to buy a buy to let property (if it’s my first home) - I know there’s limitations with the help to buy

@BodybuildingSteve 3 жыл бұрын

So I have 12k in my help to buy, thinking of swapping to a lisa, so I should transfer help to buy account too a normal account, close the help to buy, then transfer 4k every year into the lisa? This is more for retirement and long term

@kylestrop5741 3 жыл бұрын

Greetings! In the scenario of buying a 1st home, is it limited to buying it in the UK? Or can I withdraw the money for a 1st home outside the UK? Thanks in advance!

@BeCleverWithYourCash 3 жыл бұрын

Hi Kyle, yes it's UK only for a first home with a Lifetime ISA.

@joshb7415 Жыл бұрын

the caveat no one has explained to me, why cant I just put 4k in the week before the payout? whats stopping me just doing that

@anna13469 Жыл бұрын

Hi, thank you so so much for this video, so helpful! I am a bit rubbish at understanding investments and was wondering if you could answer 2 questions: - can you confirm if the 25% penalty for not using the money to buy a home is on the cash you initially put in or is it the 25% bonus (i.e. do I still get the same money I put in back)? - is the 25% bonus calculated each year on the amount of money I have in the ISA account at that time (i.e. inclusive of previous year's bonuses)?

@the2introverts Жыл бұрын

Hello.!! 25% withdrawal charges on the amount you withdraw

@jackleary691 9 ай бұрын

You get less back as the 25 percent withdrawal charge is on what you put in plus the 25 percent they gave you on the amount you put in.

@jackleary691 9 ай бұрын

And for the second question no I don't think so

@lakakhahaha2423 3 жыл бұрын

If you use the LISA to invest in the stock market do you lose the 25% bonus

@IndieButterflyWarrior 3 жыл бұрын

That thought just crossed my mind. I would assume you'd have to wait until 60 to invest the money without losing the bonus.

@ericalke 2 жыл бұрын

Quick question Andy, every financial year starts in the 6th of April. Would I obtain the £2000 if I add £4000 into my ISA before the end of the financial year, add another £4000 after the start of the next financial year and then buy a house by the end of April? Thanks you for your time

@BeCleverWithYourCash 2 жыл бұрын

Yep you definitely could. You just need to make sure that the Lifetime ISA has been open for at least 12 months before using it. That can be with just a quid.

@bethanirose5542 2 жыл бұрын

Can me and Mt partner have separate accounts but use it for the same property

@Amit_l92 3 жыл бұрын

Hi Andy. Great video. I’ve opened a stocks & shares ISA this year. Can I also open & pay into a LISA too?

@BeCleverWithYourCash 3 жыл бұрын

Yes you can! As long as you meet that eligibility criteria explained in the video. The £4k limit for the LISA comes out of the total £20k ISA allowance

@Amit_l92 3 жыл бұрын

@@BeCleverWithYourCash Great thanks! 👍

@laurrenb6876 3 жыл бұрын

Can you open a lisa and a cash isa in the same year? Or a lisa and a stock and shares isa in the same year?

@BeCleverWithYourCash 3 жыл бұрын

Yep!

@douglasking2973 9 ай бұрын

Just a question. Could I invest 4k in lifetime isa and 20k in stock and share isa. Or is the 4k included in you're 20k allowance. Just watched . Got my answer now thanks

@pm5095 3 ай бұрын

The 4000k for Lisa is included in the 2000k allowance..so if you put 4k in Lisa you have only 16000 left allowance

@Magneticvortex-kk4gb Жыл бұрын

If you buy a business property through a limited company does that count as a first home?

@bikeman123 9 ай бұрын

Of course not

@akchayan7596 Жыл бұрын

If I want to buy house then rent it out can I use cash isa

@amaesin3374 2 жыл бұрын

Hi, Can you share on accounts 40+ can open and help towards buying their first home

@BeCleverWithYourCash 2 жыл бұрын

Sadly there are no specialist accounts, so you'll be looking at the best paying savings accounts. There are regular updates on my channel if you go to the main page

@joltix3494 3 жыл бұрын

Can you invest in a index fund into a lifetime isa

@mattward3280 Жыл бұрын

Do you have to put your in the max amount of 4k to get the 25% yearly bonus? Or can it be below 4k input and you still get the yearly 25% bonus?

@the2introverts Жыл бұрын

Can be any amount less that 4K too and they will add 25% of that amount

@bennybenny7382 3 жыл бұрын

What happens if you use LISA to help get more money towards a home, buy the home then sell the home? would you lose the cash or something?

@BeCleverWithYourCash 3 жыл бұрын

Hi Benny, so technically you can do that with no problem. People's circumstances change all the time which might require you to sell or rent it out. And there's no set policy that I can find which says you must be there for say 6 or 12 months before a change is allowed. However there is always a chance that if somehow they (and I'm not sure who "they" would be) found out you'd done this and decided it was always your intention to not live there yourself they could ask for the money back. I think it's an unlikely scenario though.

@bennybenny7382 3 жыл бұрын

@@BeCleverWithYourCash thanks

@mayathethy1565 Жыл бұрын

Can you use it to buy a flat?

@gachacaspa 3 жыл бұрын

Should I get a stock or cash isa? I'll be saving for probably 10 years when I start for a home.

@BeCleverWithYourCash 3 жыл бұрын

Generally it’s worth using stocks and shares for any savings that you won’t need for more than five years - BUT there’s always the risk that the initial deposit could fall in value, so you’ve got to be comfortable with that

@AhlulQuraan Жыл бұрын

If you invest in a stock isa, is the 25% charge applied on the total pot or just the initial investment? E.g. I put in £4k and then get £1k from goverment. The £5k grows and gains in value to £6k. If I then decide to withdraw, do I get charged 25% of £5k or £6k?

@the2introverts Жыл бұрын

25% withdrawal charges on the amount you withdraw

@JoSantino147 3 жыл бұрын

Something wasn't clear for me and haven't been able to find information on it. Say you have 8k in a help to buy and want to transfer it into a LISA. Will I be able to transfer all that in one tax year or will I have to wait another year, keep my monthly contributions in the Help to Buy and then transfer the rest?

@BeCleverWithYourCash 3 жыл бұрын

You can only transfer in £4K each financial year; so you’ll have to wait until next year to move the rest. So it depends when you want to buy and, if outside London, how much the house is

@m-p-s-80 3 жыл бұрын

Me and my wife have lifetime isa's for purchase of first home. If we have example 40k paid into the lifetime isa and want to put say 20k deposit what happens to the rest of the money in the isa?

@somedude4938 3 жыл бұрын

check your Ts&Cs, but you should be able to leave the rest in there and withdraw it tax-free when you get to 60. Otherwise you have to pay a 7%ish effective fee as Andy explained

@ryansmith1032 Жыл бұрын

With the lifetime Isa if I put 4K per year and keep it in cash (not invest it ) do I still revive 25% intreast from the government. If I buy a house can I continue to pay into the lifetime Isa or does it stop

@the2introverts Жыл бұрын

You can hold cash or stocks and shares in your Lifetime ISA, or have a combination of both. You will receive 25% bonus in either cases

@azazaelg5782 3 жыл бұрын

Can you use cash and your isa towards buying your house?

@BeCleverWithYourCash 3 жыл бұрын

Yes The Lifetime ISA is just part of the deposit you’ll need - unless you have one for a very long time!

@uni3259 3 жыл бұрын

Very helpful video!. Just as question regarding the property value, does the £450k cap apply to shared ownership properties as well? Would one be able to use this cash to buy 75% share of £600k property?

@BeCleverWithYourCash 3 жыл бұрын

HI Martynas, yes you can use a LISA for your part of the purchase, though the total property value is used to check eligibility (under £450,000)

@FXCartel 3 жыл бұрын

I've got a help to buy I'm tempted to switch to a life time isa but don't want to lose out. Will take me 4 years to get to 12k and the max 3k bonus where as can get that in 3 years or less with life time isa

@BeCleverWithYourCash 3 жыл бұрын

The big reasons to stick with a Help To Buy are that you’re not 100% sure you’ll buy or if you’ll buy in the next 12 months. Otherwise LiSAs tend to win. At the very least open a Lifetime ISA now and put £1 in to start that one year countdown

@FXCartel 3 жыл бұрын

@@BeCleverWithYourCash I worked out if I move my money into a Lisa I can get the full bonus now and save faster then a help to buy. Thank you for this video really cleared things up better late then never

@BeCleverWithYourCash 3 жыл бұрын

Great!