£8,500 out of pension for a new house

nicolabrown81

Hi all,

My husbands in the army and we already own our own home. We are looking at moving as we need a bigger house as we have just had a little girl. We have been told by someone that we are entitled to £8,500 out of his pension to help towards our new home, we can either pay this back our of his pay or they take it off his pension. Has anyone heard of this? How does it work?

Nicola

Andy_L

There's the Long Service Advance of Pay (LSAP) of £8.5k.or 182 days pay (which ever is lowest) As the name implies its from his pay, not pension, and paid back over 10 years interest free

http://www.mod.uk/NR/rdonlyres/93FE5891-CD95-4612-ADE7-3FD53DC3A161/0/20090122lsap_v4_jshao.pdf

Lindy_Loo_3

Hi there

We're actually going through the same process. Your husband needs to speak to his clerk to get the paperwork when you've found the house you want, had your offer accepted and instructed a solicitor.

Basically though (as I understand), up to £5,000 is "tax free" so is effectively "gifted" and you only pay back £5,000. However if you take out the £8,500 you would pay some tax on it. Doesn't work out at a lot of money, about £70 a year more I think. The repayments are taken directly from your husband's wages.

Anyway, you can use the money for anything to do with the purchase so from solicitors fees to surveyors to using it for the deposit.

If you are using the money as a deposit, you'll have to explain it to the lender and it's preferable to get a solicitor who is used to dealing with the Forces.

Good luck

WhiteThierry

i heard it had gone up to £15000 allowance, is this true???

gt568

WhiteThierry wrote: »

i heard it had gone up to £15000 allowance, is this true???

No. At least not yet.

Lindy_Loo_3

Well we're in the process of applying at the moment and it's currently £8,500.

First time I've heard it's going up . . . . .

WhiteThierry

Lindy_Loo wrote: »

Well we're in the process of applying at the moment and it's currently £8,500.

First time I've heard it's going up . . . . .

i heard it from a RAF corporal adminner in the pub so i can only put it under "rumour control"

Trying_to_be_good

I heard they wanted to put it up but it's unaffordable. If it's subject to the Planning Round, I can't see it getting through.

Fingers crossed, though.

jenjen1

nicolabrown81 - I thought LSAP was for first time buyers only?

jenjen1

WhiteThierry wrote: »

i heard it had gone up to £15000 allowance, is this true???

The £15000 is the new rate for the committment bonus, no LSAP. That remains at £8,500

WhiteThierry

jenjen1 wrote: »

The £15000 is the new rate for the committment bonus, no LSAP. That remains at £8,500

ah yeah that one, i missed out on that by about 6 months, so now im completely and utterly ************************'ed off about it, i love how the armed forces try to increase morale and manage to !!!! off all the people who've been in the forces for more than a couple of years which equates to about 90% of the people currently serving, yeah nice one. Its great that people less experienced than me are getting more money than me!