A £475,000 home is £25,000 over the £450,000 Lifetime ISA cap. Using LISA money on it counts as an unauthorised withdrawal: 25% of whatever you take out, leaving you 6.25% down on your own money.
| Deposit | Amount | Years at the max | Two buyers |
|---|---|---|---|
| 5% | £23,750 | 5 | 3 |
| 10% | £47,500 | 10 | 5 |
| 15% | £71,250 | 15 | 8 |
| 20% | £95,000 | 19 | 10 |
"At the max" means £4,000 paid in plus the £1,000 bonus — £5,000 a year. Two buyers each holding a LISA halve the years. No investment growth is assumed; a stocks-and-shares LISA could get there faster or slower.
| LISA pot | Charge | You receive |
|---|---|---|
| £10,000 | £2,500 | £7,500 |
| £20,000 | £5,000 | £15,000 |
| £30,000 | £7,500 | £22,500 |
The cap is on the purchase price, not on what you borrow or what the house is worth later. There is no regional variation and no London uplift — £450,000 is the figure everywhere in the UK, and it has not moved since Lifetime ISAs launched in 2017.
No. £475,000 is £25,000 above the £450,000 cap, so the money would come out with a 25% charge.
Per property. Two first-time buyers can each hold a Lifetime ISA and use both on the same purchase — that is up to £10,000 a year going in between them — but the home itself still has to cost £450,000 or less.
Never having owned a home anywhere in the world, including inherited shares of one. If either buyer has owned before, only the other one's LISA can be used.
Your conveyancer requests it from your LISA provider and it goes into the purchase directly. It never passes through your bank account, which is what keeps it out of withdrawal-charge territory.
Rates and limits read 19 August 2026 from GOV.UK: Lifetime ISA, withdrawing money and ISA allowances. Figures are for the 2026/27 tax year.
Rates and limits for the 2026/27 tax year, read 19 August 2026 from GOV.UK. Nothing here is financial advice: it is arithmetic on published rules, and no investment return is assumed anywhere.