Martin Lewis - are Lifetime ISAs right for you?
Вставка
- Опубліковано 9 жов 2024
- Martin Lewis explains how the Lifetime ISA works, how it interacts with the Help to Buy ISA, whether it’s a better option than a pension and more. Watch the video, then read the full guide www.moneysaving... for the latest information.
Is there anything to stop you from buying a house for 450k then selling it to effectively release the tax free bonus then use that along with other savings to buy a more expensive home?
No
You’d lose the tax paid and fees so probably wipe out the bonuses anyway so may swell just do the larger house
Can you use it to buy a canal boat or stationary caravan?
No. You can't get a mortgage for a canal boat or caravan, only a normal loan
Love these videos - explains everything so well in an easy to understand format!
Thank you Martin - Your channel is really helpful.
Fawad Malik q
Can you use the Lifetime ISA in combination with the help to buy scheme?
Is it your first home that you have to live in or can you use it to buy a house that i can rent?
you can in some circumstances (worth looking it up) but the T&C's state that it “must not be rented out after you buy it”.
@@EuanCopeland Lisa sounds shit then
How is it shit the government are giving you £1000 per your £4000 savings for absolutely free
What if I take up a Lisa in February 2018 and stockpiling £4000 before the end of the tax year(April, so just 2 months)...Will I get the bonus by keeping that account open just for two months? In that case, say that I can consider that bonus as granted, can I start contributing in putting money for the consequent tax year bonus?
I have that very question in mind. 🤔
Thanks for the video. I have a question please: what if you're not going to buy a house any more? The details on the banks website specify that it is only for 1st time buyer. It does not mention to move this kind of ISA into a normal ISA. It is also written (Santander) that you can receive the 25% bonus only when you close the account to buy the house.
Maria Ferrara you can still open a lifetime ISA to save for retirement even if you have already bought or have no plans to buy a property
Hi, Nice video. I have a question. Can I invest in three ISA i.e my stocks and shares ISA and my lifetime ISA and Help to Buy ISA in the same tax year (as long as all the three investments don't exceed a total of 20k)? Thanks.
Hi my name is lida I'm 56 year old can you tell me what to do option is for me to save money for my retirement
Let me ask you question mr Martin i have help to buy ISA
Can i do what you say if you
Don't buy house.
Hi Cassandra - with the LISA if you decide not to buy a house, you can either:
1: Withdraw the money and you will be penalised 25% on the full amount leaving you with less than you originally put in.
2: Wait until you are 60 and withdraw it with no penalty.
So the cap is 450k so can you still buy a house at 450k or does it really have to be that number like up to 449999.
Can this be a house that I want to rent out? Or does it have to be a house that I want to live in?
Is the mortgage I will get tied up to Lisa provider or will there be the possibility to open a Lisa account with one provider and get the mortgage with another bank/building society?
you will not get tied into that bank/building society !
What if me and my partner realise in the future, we wanted to buy a first house worth over £450k? Would we be able to withdraw the money without the withdrawal charge and losing the bonus? Or would be have to wait until retirement to get the money without the bonus and with a withdrawal fee?
Does the LISA continue to receive interest after the 10 years.
Can i have a help to buy isa and lifetime isa and pay in them both in the same year?
I opened a help to buy for my daughter just before it closed. We don't have any plans for her to buy a house in the next couple of years.
Are there any benefits and is it possible to have a help to buy and LIsa open at the same time and pay into them both in the same year? e.g could she pay £4000 in the LISA and £2000 in to the Help to buy?
I know you can only get the bonus from 1 to use on the property so i'm thinking...... If she saved £4000 per year in the help to and then used that to buy her house eventually in say 5 years, the bonus would be higher than she could ever get in the help to buy. However, the interest rate on the help to buy is better than a current account or any saver at the moment. So, i'm thinking to continue to pay into the help to buy as well. BUT, would she loose all the interest that she has gained on the help to buy when she finally withdraws it after 5 years or in 2030 or is it just the gov bonus that she would loose? Thank you.
Do you have to add the 4k in one single payment to get the full 1k bonus? I'm thinking about opening one but I'm not sure if it's a good time as we are nearly at the end of the tax year date and I'm worried I wouldn't get the full benefit if I didn't put 4k in by the end the tax year so should I wait until after this date to open one?
You don't have to add 4k in one payment. You can do as many payments as you like. Start it as soon as possible and add to it as much as possible. You will get £2.5 for every £10 you add in it.
Im 40, So I can't apply for an Lisa?
What if inherit my parents house before I get to buy my first house? Will that money then be able to be used anymore?
Sounds cynical but my parents have said they’d leave their house to me if anything happens (hopefully this won’t happen for a very VERY long time).
Great advice 👍🏼
In what tax year is this starting ? 2016-2017 or 2017-18?
Is it treated like any other savings should you die before you get to draw it out? Or are there different rules?
Challenge Danika Yes - it will be passed on as part of your estate
Can you use a LISA combined with regular savings to pay for a house deposit and will the bonus only apply to the contribution towards it from the LISA?
That is correct - however you could deposit £4000 in March 2020 and £4000 in April 2020 and get £2000 bonus (£1000 each financial year). Could be worth it if you can wait that long :)
Euan Copeland fantastic. Thanks man - good luck Happy buying!
@@EuanCopeland Hey,could you elaborate on this please? Do you recommend opening a Lifetime ISA in March 2020 then an additional Lifetime ISA in April2020?
Miss Gina Williams Hi Gina, you cant open 2 LISA’s as an individual (But if you have a partner then they could open one also). If you opened a LISA now you could deposit up to £4000 and then get the full bonus for this financial year 19/20 and then deposit £4000 in April in the new tax year 20/21! Hope that makes sense!
@@EuanCopeland thanks for speedy reply. Makes perfect financial sense. Just need to find 4k somewhere before March🤣
Currently on your channel, watching your dream home video😊
Whats the best company to open up a L-isa with
I use the money box app because its simple and easy to download and open, but Newcastle Building Society is also good! hope this helps! I just did a video on this topic - so have been researching quite a bit!
Can you use it to buy a property abroad?
No you can only buy a property in the UK.
can I move my ISA to a lifetime isa
Can you use both for a deposit and get both bonus’
Hi K,
Unfortunately you can only get a bonus from either the LISA or Help-to-Buy (if I understood your question correctly).
Hope this helps :)
Euan
If I get a Lifetime ISA then withdraw for my first property by the age 35, Could I still to continue saving in that same ISA and recieve the 25% bonus up to age 50 to use for retirement?
Yes, unless you are withdrawing for purposes other than retirement or buying your first home then you will faced a penalty. But if you are using it to purchase your first home , you can continue to use that LISA and received the same bonus until you are 50 for retirement.
yea...but, what happens if government sees peoples Isa's and decide they can afford to look after themselves if they should need help because something has happened in the economy. and the money goes soon into retirement. sorry I don't trust that way of saving. government have been known to help banks but not people.
Can i only put 4000 in a lifetime isa?
You can put in more but you won’t get 25% bonus on anything above 4000 in 1 tax year.
Isa's are not worth doing unless they pay atleast 5%
Most do not theseday if you are lucky you may get1%
it's 2017 - 18 Ally
This government schema is absolute shite. You can't buy a decent home these days for 450k unless you are up north - and that isn't even taking into account the inevitable rise of house prices over the next 10 years which is how long you would need to save for a deposit. I don't get why they have that cap.
No . I'm 49! Ha!