Lifetime ISA for Buying a House

Quick answer

To use a Lifetime ISA for a first home without a charge, the home must cost £450,000 or less and the account must have been open at least 12 months.
The money goes from the ISA manager to your conveyancer, not to you, after a declaration is sent.
The purchase has to complete within 90 days of your conveyancer receiving the money. Your conveyancer can ask for a 60-day and then a 30-day extension.
If the purchase does not complete, the money goes back to the ISA. Any shortfall is charged 25%.

To use a Lifetime ISA to buy a home, your conveyancer sends your ISA manager a declaration and the manager pays the money to your conveyancer, not to you. The money has to be used within 90 days. The payment step can delay completion, so start it early.

Checked 20 October 2026, against HMRC's guidance for Lifetime ISA withdrawals for a first time residential purchase. This guide covers the legal process only. We do not give advice on which ISA to choose or whether to save into one.

The conditions for a charge-free withdrawal

For the withdrawal to be free of the Lifetime ISA withdrawal charge:

The price is £450,000 or less. The limit applies whether you buy alone or jointly.
The account has been open at least 12 months. That is counted from your first payment into it.
It is a first home that will be your main residence. HMRC calls this a first time residential purchase.
You use a mortgage or similar loan secured on the property. A buy-to-let mortgage does not qualify, and from 6 April 2024 a loan from a connected party does not either.
Completion is expected within 90 days of your conveyancer receiving the money.

If you do not meet the conditions, a withdrawal is charged at 25%, which can leave you with less than you paid in.

How the claim works, step by step

You tell us you have a Lifetime ISA when you instruct us. Our "Lifetime ISA" line is £150 + VAT per account.
You give us the account details and sign a declaration. It confirms the facts above are true and complete to the best of your knowledge.
We send the ISA manager our declaration with the purchase price and our client account details.
The manager pays the money to us. It should do so within 30 days of receiving the declaration.
Completion has to happen within 90 days of us receiving the money.
We tell the manager the completion date within 10 business days of completing.

Why a Lifetime ISA can delay completion

The usual cause is timing. The manager has up to 30 days to pay, so if the declaration is sent late the money may not arrive before the date everyone wants to exchange or complete.

To avoid that:

Tell us about the Lifetime ISA at the start, not when the mortgage offer arrives.
Send the account details and signed declaration promptly.
Do not withdraw the money yourself. It has to be paid to your conveyancer to count as the first-home route.

Our guide on how long conveyancing takes explains the other points that decide the timetable.

If it will take longer than 90 days

If completion is still expected but will not happen within 90 days, your conveyancer can ask the ISA manager for a 60-day extension, followed by a further 30 days if needed. Tell us early if the date looks like slipping.

If the purchase falls through

We must return the full amount to the ISA manager, which repays it into your account. If the amount returned is less than the amount withdrawn, the shortfall is treated as a withdrawal and charged at 25%. HMRC allows any interest earned while we held the money to be paid to you.

Separately, if your purchase falls through, you pay our File Opening Fee (Non-refundable), £100 + VAT, and any disbursements we have already paid out on your behalf. The rest of what you have paid us is refunded, or carried over to your next property when you find one.

Questions people ask

Can I use my Lifetime ISA to buy a house?

Yes, for a first home that costs £450,000 or less, if the account has been open for at least 12 months and you will live in the home. The money is paid to your conveyancer.

How long does a Lifetime ISA take to release?

The manager should pay your conveyancer within 30 days of getting the declaration. Some pay sooner, so ask us to send it as early as the timetable allows.

Does the Lifetime ISA bonus count towards the deposit?

Your ISA balance includes the government bonus, and a withdrawal for the purchase can take it. The amount withdrawn must be less than the purchase price. Ask your ISA manager what it will release.

Can I use a Lifetime ISA with a gifted deposit?

Yes. Both can go towards the same purchase. Our guide to gifted deposits explains the paperwork for a gift.

Can I use a Lifetime ISA on a buy-to-let?

No. The withdrawal is only free of charge for your own main residence.

Does a Lifetime ISA affect Stamp Duty?

Not directly. First-time buyer relief depends on the price and on you being a first-time buyer, not on how you fund the deposit. See our guide to first-time buyer stamp duty relief.

Buying your first home with us

Our first-time buyer conveyancing page explains how we handle a purchase, including a Lifetime ISA claim. Our first-time buyer checklist lists the documents to get ready. For an itemised figure, get a quote for your purchase.