Lifetime ISA Use for First Property Purchase: Residence vs. Buy-to-Let Query

Hi, I need clarification regarding the use of Lifetime ISA funds. I plan to purchase my first property, but I intend to: Buy the property, renovate it, and rent it out. Refinance it with a buy-to-let mortgage. (I do not plan on living in this property.) My questions are: Can I still use my Lifetime ISA funds for this purchase, or would this disqualify me because it’s not immediately my residence? If I don’t use the funds now, will they remain eligible for a future personal home purchase without losing the 25% government bonus? Thank you for your help!

Hi,
As the lifetime ISA is to buy your first home, and you are renting it out, this is not considered your home so you would not qualify.
We cannot comment on future events as legislation may change.
Thank you.

Thanks for your reply. Under current legislation then, could I buy a property that I plan on renting out with a buy-to-let mortgage, and then purchase a personal home with the Lifetime ISA? Thanks in advance.

Hi,
The guidance below advises the funds can only be used to purchase your first home.  
Lifetime ISA
As the buy to let property is not your first home, but an investment, it does not affect your LISA.
Thank you.

Hi, I would like to use lifetime ISA to buy my first home. I'm planning to live in the home. My question is in case my circumstances or my family circumstances changed and we have to move to another city or even move out of UK for the sake of work or education, would it be possible at that time to rent the home or there will be a penalty or I will have to pay the money back ? Thanks, Amr

Hi Amrrashwan
The lifetime ISA exists to help you buy your first home. which will become your main residence.
If at some point in the future, your employer relocates you to work from another part of the UK or overseas, you would be able to rent out your home while working away.
Have a look here:
HS283 Private Residence Relief (2024).
Please also have a look at the guidance on periods of absence at CG650030 onewards:
CG65030 - Private residence relief: periods of absence: introduction
You would not be required to pay back the 25% support from your lifetime ISA.
Thank you.