To use a Lifetime ISA (LISA) for your first home, the account must have been open for at least 12 months since your first payment, the property must cost £450,000 or less, you must buy with a mortgage, and your conveyancer must request the money, which your provider pays straight to them. Get any of those wrong and you face a 25% withdrawal charge, which takes back the bonus and some of your own savings.
This guide walks through the process in order, from opening the account to completion day, and explains the government's plan to replace the LISA with a new First Time Buyer ISA. For how the bonus builds up and whether to choose cash or stocks, see our Lifetime ISA guide for first-time buyers.
The rules in one table
| Rule | Detail |
|---|---|
| Who can open one | Aged 18 to 39; you can pay in until 50 |
| Yearly limit | £4,000, part of your £20,000 ISA allowance |
| Government bonus | 25%, up to £1,000 a year |
| Waiting period | 12 months from your first payment |
| Property price cap | £450,000 |
| How you buy | With a mortgage, as your main home |
| Who gets the money | Your conveyancer or solicitor, not you |
| Completion window | 90 days, extendable to 180 |
You must be a first-time buyer, meaning you have never owned a home in the UK or abroad. Since 6 April 2024 the mortgage cannot come from a close relative or your partner.
Step 1: open the account early
The 12-month clock starts from your first payment, not from when you start house hunting. Even if you plan to buy in two years, opening the account now with a small amount starts the clock. Make your first payment before your 40th birthday, or you lose the chance to open one at all.
Use our ISA allowance tracker to keep LISA payments within your yearly limits.
Step 2: check the price cap and your budget
The £450,000 cap has not changed since the LISA launched in 2017 and applies to the full purchase price, wherever in the UK you buy. If you might go above it, a LISA is risky: buying a £460,000 home means you can only withdraw with the 25% charge. In England and Northern Ireland, first-time buyers pay no stamp duty on the first £300,000 and 5% up to £500,000, so the two limits do not line up. Check costs with our stamp duty calculator and mortgage calculator.
Step 3: tell your conveyancer at the start
Tell your solicitor or conveyancer you will use a LISA when you instruct them, as not all firms are familiar with the process. You cannot act as your own conveyancer.
- You complete a declaration with the amount, your LISA account number, confirmation you are a first-time buyer and the property details
- Your conveyancer adds their own confirmations, including the purchase price and a promise to return the money if the sale does not complete
- They send it to your LISA provider, who normally pays within 30 days of receiving a complete request
- Ask your conveyancer when to request the money, as it is usually aimed at completion rather than the deposit paid at exchange; you may need other savings for that
Step 4: time the withdrawal and the bonus
Once the money is paid out, the purchase should complete within 90 days. If it is progressing but delayed, your conveyancer can ask for a 60-day extension and then a further 30 days, up to 180 days in total. If it still does not complete, the money must go back into a LISA, and anything not returned is treated as an unauthorised withdrawal.
Bonuses are claimed by your provider monthly, so a payment made shortly before you withdraw may not have its bonus added yet. Ask your provider how they handle late bonuses before you request the funds.
Step 5: if the sale falls through
Your conveyancer returns the money to your LISA provider, and it goes straight back into your LISA without a charge. Any interest earned while the money was held can be paid to you. If you closed the account, the original provider must pay it into a new LISA in your name, which you can open for the purpose.
Buying with someone else
If you buy with a partner or friend, each of you can use your own LISA, as long as each of you who uses one is a first-time buyer and meets the rules. Each LISA holder gives their own declaration. You can also use your LISA when buying with someone who already owns or has owned a home; only the LISA holder needs to be a first-time buyer. If you also have a Help to Buy ISA, you can only use the bonus from one of the two for the same purchase.
The planned First Time Buyer ISA
HM Treasury consulted from June to August 2026 on replacing the LISA with a new First Time Buyer ISA. The proposals include opening it from 18 with no upper age limit, a bonus paid when you buy, and no withdrawal charge. The yearly limit, bonus rate and launch date have not been confirmed.
For now, you can still open a LISA and pay into it, and the current rules above apply. Avoid holding off on saving while you wait for details. Our ISA vs LISA comparison covers where else to keep a deposit, and SYM can help you build the monthly habit by suggesting a small daily amount towards your £4,000.
Frequently asked questions
How long do I need a Lifetime ISA before buying a house?
Can I use my Lifetime ISA for the deposit at exchange?
What happens if my house purchase takes longer than 90 days?
Can I use a Lifetime ISA on a house over £450,000?
Is the Lifetime ISA being scrapped?
Can my partner and I both use a Lifetime ISA on the same house?
- Lifetime ISA
- first-time buyer
- house deposit
- conveyancer
- First Time Buyer ISA