The UK government has set up a LISA scheme for first-time house buyers.
My understanding is I invest up to £4000 per year. The government adds 25% of my investment. This happens every year from when I'm 18 (2017) until I'm 50 (2049) (so the maximum investment is £128,000 and the bonus on that would be £32,000).
If I invest £4000 per year into a Stocks and Shares LISA, I would hopefully get an interest rate of ~6% and at the end of the 32 years (i.e. the year I turn 40) I would have £476,262.44.
This raises 2 linked questions.
I've got £476,000 but the maximum house price is £450,000. What happens to the £26,000. Does it stay there with ~6% interest (and no bonus of course), and would be available when I retire at around 75 (there would be about £106,000 by then)?
I would want to access this money, but when I'm 50 I would like to buy a house worth more than £450,000 (but I'm not planning on buying before then - I'd rather rent). Can I buy a house and "quickly" sell it again, to simply access the money, or would the government catch on and take away the bonus?