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Posted Mon, 07 Oct 2024 08:26:31 GMT by Achilleas Athanasiou Fragkoulis
Hello, I am trying to understand if a bridging loan would satisfy the criteria for utilizing money saved in a LISA account towards a first-time home purchase.
I am purchasing at auction and the property has a short lease and absent freeholder. No mainstream lender is going to lend against this. I have a significant amount saved up in my LISA that I would like to use towards the purchase of this property. As per the wording on the official guidance for LISA one of the eligibility criteria for the purchase states that "the property is purchased with a loan taken as a charge over the property (i.e. mortgage); ".
I have read through the conveyancer's guidance on LISAs and it is still unclear to me. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/691773/conveyancer__1___5_.pdf
Posted Wed, 16 Oct 2024 15:20:44 GMT by HMRC Admin 13 Response
Hi 
The guidance advises "Investors can make charge-free withdrawals from a Lifetime ISA if the funds are going towards the purchase price of their first residential property in the UK. This includes when the investor makes the purchase:
- on their own
- with another first time buyer
- with an individual who is not a first time buyer”
Please see guidance at: Lifetime ISA withdrawals for a first time residential purchase  
Thank you
Posted Wed, 16 Oct 2024 18:24:16 GMT by Achilleas Athanasiou Fragkoulis
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