EXPERTS
Lifetime ISA
Q Is a Lifetime ISA worth it? I’m renting so don’t have a lot of spare cash to save. Alfie Hill, Basingstoke A If you’re renting and don’t have much spare cash, a Lifetime ISA (LISA) can still be a useful way to save for your first home. Aimed at 18 to 39-year-olds, the LISA allows you to save up to £4,000 a year with a 25% Government bonus – giving you up to £1,000 extra annually. Even small, regular contributions, such as £50 a month, can build up over time, especially with the bonus added monthly. There are key conditions: • You must be a first time buyer who has never owned property anywhere in the world • The home must be in the UK and cost £450,000 or less • You must buy with a mortgage • The account must be open for at least 12 months before you buy • Withdraw money for anything other than your first home or retirement at age 60 or over and you’ll face a 25% penalty, which takes away more than just the bonus. For example, withdrawing £1,000 will only give you £750 back. If you’re buying with a partner, you can both open LISAs and use your bonuses, provided you each meet the criteria. If one of you has previously owned a home, that person can’t use a LISA for the purchase – but the other still can, so you won’t lose out entirely.
You can choose either a Cash LISA or a Stocks & Shares LISA. With a Cash LISA, your savings earn interest, making it a lower- risk option. But interest rates may be modest. A Stocks & Shares LISA invests your money in the stock market, with the potential for higher returns, but also the risk of losses. To get the most from your savings, it’s worth comparing products and providers.You can visit the HomeOwners Alliance website to find the best LISA rates currently available. In short, a LISA can be a valuable boost for renters saving for their first home, but it’s essential to understand the risks, penalties, and eligibility before getting started.
Paula Higgins
Should I staircase?
Q I moved into a Shared currently, but I’m wondering about what my next steps might be in the next 12 months. I have been considering selling my property and moving on, but should I staircase first? Lily Mason,Tooting A Great question – it’s always Ownership home 12 months ago. I am very happy here important to plan your next steps. Before you dive into staircasing or selling, take a moment to reflect on why you’re thinking about moving. Do you need more room? Want a new location that suits your lifestyle or job better? Or does it just feel like the right time? Some people choose to move to reduce their monthly outgoings – perhaps by relocating to a more affordable area. However, moving isn’t the only way to shift your finances.You could consider renting out your spare room to a lodger, which could help you save more toward your next purchase. If moving is your ultimate goal, this can be a great interim step to boost your finances. Most housing associations, including Southern Housing, have a supportive resales process in place.They’ll help market your home for a set period, usually around
significantly, staircasing now could be a financially savvy move.That’s because your new share purchase price is based on the current market.This could be a good time to explore increasing your ownership, and waiting a little longer to sell, allowing for more potential growth. Whether you’re planning to staircase, sell, or stay put and save, the key is to explore your personal circumstances and long-term goals.
eight weeks, giving priority to purchasers who are eligible for Shared Ownership and who are unable to buy on the open market. If no buyer is found, you’ll have the option to sell on the open market. Keep in mind that it is possible to simultaneously staircase to 100%, which could give you access to a wider pool of buyers. If you are thinking about staircasing, it’s worth considering timing. If your home’s value has increased, you’ll benefit from the increased equity in your current share. However, if the value hasn’t risen
Laura Rose
First Time Buyer August/September 2025 131
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