Lifetime ISA withdrawals are free if you are:
• Using the proceeds towards buying a first home
• Aged 60
• Terminally ill with less than 12 months to live
• Transferring a Lifetime ISA to another provider
If you want to withdraw your investment for any other reason then you will have to pay a penalty of 25% of the amount withdrawn and this is perhaps the major drawback of a Lifetime ISA. The penalty could mean that you get back less than you paid in.