Lifetime ISA (LISA) Explained - Complete Guide

The complete guide to Lifetime ISA accounts known as LISA.

LISA accounts are special types of ISA Accounts that have a number of unique features and some unique restrictions.

You can save up to £4,000 per year into a LISA account and use it either to purchase your first home or as part of retirement planning.

The UK Government then tops it up by 25% up to a £1,000 extra cash and you can use a LISA that works like a Cash ISA or one that works like a Stocks & Shares ISA to grow the value.

There are a few rules to be aware of when withdrawing the money - if you don't buy your first property or draw the money down after turning 60, you will have to pay a 25% penalty.

For buying your first home, the price of the property has to be £450,000 or less, you have to wait at least 12 months from making the first deposit before buying and you have to buy with a mortgage.

In the video I cover some other important considerations and useful things to know about Lifetime ISA accounts.

TIMESTAMPS
Introduction - 00:00
LISA Rules - 01:06
Buying Your First Home - 04:53
Retirement Planning - 06:54

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[maiamclaughlin]

Very straight forward and easy to understand. I’ve set up an LISA to buy my first house with my partner but didn’t understand how it worked. Thank you!!

[Bionictati]

Hi Sasha! I wanted to let you know that I like your videos because: 1). The structure of it is well organised 2). you go straight to the point, too many youtuber has too long intro and too much bla-bla-bla so annoying 3). the tone and pace of your voice is nice and clear. 5starts channels 👍🏽 continue doing what you are doing !

[childchernobyl]

Look at you go! You’re still the GOAT.

[lzlrjjw]

I use LISA to buy my house,
in March 2020 - I add 4000 + my wife add 4000
in April 2020 - I add 4000 + my wife add 4000 (after 6 April )

My deposit grow up from 16 to 20K

And this is working for any nationality since you have a live in UK, I am from Brazil

[tangomanO]

great job with these consistent uploads, would normally expect videos of this quality on a weekly schedule :)

[webbmoney]

Great video, you explain LISA's really well here!

[dinaajjo]

Informative video. Have a question, what is the difference in terms of money benefit after 12 months if i open ISA with 20000£ stat vs open LISA with 4000£ ??

[onscott]

wow you are very prolific right now, glad i found you recently :)

[Ronin-ckmh]

I’ve literally been going through your videos, you have made great simple to understand videos. Is Lisa better than nest as a retirement fund?

[TheStovo]

Great video. Just a small correction: I have a lifetime Isa with AJ Bell and I am able to invest in individual stocks and indexes such as the S&P500

[BRAIOfficial]

Very well informed video. I got one question. Are you restricted to only use the saved money in the LISA account for the deposit of your first home or can you use your LISA savings plus any other savings outside the LISA savings and add them together for a bigger deposit?

[mylifestyle]

what is the difference between a LISA and Help To Buy ISA? thank you for your educational videos

[adamdodge]

This was so helpful, thank you very much!!

[MrMaister]

I think is really important to mention also that the property MUST be in the UK

[AbdulAminGani]

If you're still unsure about opening a LISA, just open a Skipton LISA and deposit £1 -the 12 month clock will start ticking. When you need it after it's matured you can use it immediately for a £1k bonus (or as normal).

[ryminvesting]

Great video. Just subbed to your channel mate.

[FinalFan]

Has the LISA house price limit gone up over time? I’m just thinking for example if you want to buy a house in 15 years’ time and prices keep going up, 450, 000 is not a huge amount for London and the SE.

[DJPrmo]

You can buy individual stocks/ETF's with two of the Stocks & Shares LISA's providers, HL & AJ Bell. You just have to pay some ridiculous fees per trade...

[davidgriffiths]

Great video.. Just one question.. Can you take half of the Lifetime Isa out for your 1st home..?.. And leave the other half invested until 60?..And still add to the fund and get 25% bonus?

[Nikwadhwadxb]

Hi Sasha
Great video
I had a quick question since I couldn’t find it anywhere
What if you opened a LISA to buy your first ever property in 2-3 years
Next year a parent dies leaving you a small share(among siblings) in one property overseas.
Can you still use the bonus to buy the property?