Lsap

captaincollins

Hi,

We brought a house in November using LSAP, we still havent handed back our SFA and are moving back into it and selling the house.

Its been a nightmare, we should never of bothered looking for a house anyway its a long story BAD problems on Churchill estate (Helensburgh) and no matter how hard we pushed they wouldnt move us so we brought the house we could afford not relising how much work it needs. Things seemed to have improved on Churchill and we have a neighbour so atleast 6 houses have people in them on my side of the estate...shame about the remaining 200+ but perhaps we where hasty and the grass isnt always greener.

When we sell do we HAVE to pay back LSAP? and if we do can we get it again if we decide to buy in say 5 years time? If you dont tell them we sold the house how would they know about replaying the LSAP?

Thanks
Sharon

huskypup

Hi

They will know if you sell the house - as the MOD will have there names on your deeds, the LSAP is technically a secured loan upon your house, and they are paid second after your mortgage is paid off.

Trying_to_be_good

LSAP isn't secured anymore, I think (new policy), but may have been when you took it out. I think you're obliged, if not forced, to pay it back, but if you're in negative equity there may be a common sense approach to pay it back slowly (by being above board and telling them the situation, not trying to sneak any money away).

If it's one of those things that's treated as fraud and you could lose you job and career over it, there's only one way to go.

themaccas

I can confirm it is a second charge on your home which will immediately be flagged up by your mortgage company and solicitor when you come to sell. You will definately not be able to keep it. We went through this last year when we moved and in the end decided not to go for it in the end as we did not want the forces to own any part of our home. As it was we ended up with too much equity so didn't qualify anyhow!

EmmEve

I didn't think you were entitled to SFA if you had received LSAP to buy your own property. Not sure what happens if you then sell the property with LSAP still outstanding.

Not sure if this will be any help to you:
http://www.mod.uk/NR/rdonlyres/93FE5891-CD95-4612-ADE7-3FD53DC3A161/0/20090122lsap_v4_jshao.pdf

edwara

LSAP has changed recently. There is no longer a second charge on your property. This only happend in the last few months. Not sure if it is just for new LSAP's or exisiting as well.

We have got LSAP and it has been no problem at all.

ajmoney

It is for existing LSAP too, I took mine out in 2005 and got the letter a couple of months ago saying there was no longer a second charge. Not sure what happens when you come to sell but they naturally start taking money two years after you took it out anyway.

swood016

The regulations regarding paying the money back if you sell the house are in JSP 752. Look it up on the intranet, print it off and read.

In a nutshell, if you decide to buy in 5 years time, you will be eligable for it again. Unless you try to pull a fast one by not adhering to the regulations.

The service you are in will know that you are not living in the property when you occupy SPA. There is no getting away with it.

Please see paragraph below from JSP 752:-

A participant in the LSAP scheme may sell or otherwise dispose of a property purchased or extended with the aid of LSAP. If a LSAP remains outstanding at the date of sale or other disposal, the claimant must immediately inform the JPAC. The LSAP must be repaid immediately and in full unless the outstanding balance is to be used to offset a new LSAP or is to be transferred immediately to another qualifying property. Failure to report the sale or disposal of the property or, if appropriate, to repay the outstanding balance immediately, will be regarded as a breach of the regulations and will result in interest charges being levied against the outstanding balance from the date on which the sale took place.

dkwinstanley

Is it true that you can recieve 6 months pay instead of the £8500. If so what is the criteria for this??

swood016

No, thats not true. LSAP is still maximum £8,500.