You need to hold a Lifetime ISA for at least 12 months before using it towards the purchase of a new home.
If you save into the Lifetime element for later on in life, instead of enrolling in, or contributing to a qualifying scheme, workplace pension or personal pension scheme you could lose the benefit of contributions by an employer to that scheme.
Unlike a qualifying pension scheme, workplace pension or personal pension scheme the value of a Lifetime ISA, including the Government bonus, could impact current and future entitlement to means tested benefits, which are affected if the value is over £6,000.
If you withdraw money from the Lifetime ISA element for any reason other than a deposit on your first home, or before age 60, then a Government charge of 25% will be applied to the amount of the withdrawal, and you may get back less than you have paid into the Lifetime ISA element.
The value of your investment can fall as well as rise, and as with all stock market investments you may get back less than paid in. Inflation could reduce what you can buy in the future. Tax treatment depends on individual circumstances and may be subject to change in the future.