Using LSAP as a house deposit

kerry49

Brittania mortgages will not accept LSAP. We had to fund the £8000 LSAP we were planning on using for the deposit ourselves at the very last minute, stressful to say the least.

MegS

I work at a solicitors and the Service Veterans department gave us specific instructions that LSAP was not to be used as a deposit and can only be released for completions. Our clients were Navy/Marines. This meant we could only use it in a simultaneous exchange and completion situation or our clients had to have monies for a deposit for an earlier exchange. Not sure what difference it makes to them as surely in at least 95% of cases exchange leads to completion?

Greengage

LSAP used to be a secured loan with the MOD requiring first legal charge of the property concerned. I believe this is no longer the case which should allow lenders to be more lenient in their treatment of LSAP vis-a-vis deposit.

TomJ

A reasonably up-to-date (ie published this year) factsheet on LSAP can be found at http://www.mod.uk/NR/rdonlyres/36A418B4-C611-40AF-93FE-D3D8386ED829/0/20100204LSAP_V11_U.doc

motorbike2

BigLee_24 wrote: »

Im looking at using LSAP to buy a house and I was told by one of the UPO staff that it is designed for the deposit and legal fees etc etc to buy the house but you have to have a solicitor to get the money payed to who will then issue it out as needed and have a morgage agreed in principle in order for the money to be released..... He also told me that you pay the money back in the last 10 years of service or if you leave before then it comes out of your leaving payment..... Also not sure how true this is but heard a buzz that amount has gone up from £8'500 to £15'000 but dont quote me on that......

The JSP giving full information is available online. LSAP is still £8500. You have various choices when repaying, depending on your time left to serve. Most opt for only paying the interest for the first 2 years then automatically around £80 is taken directly out of your pay for the next ten. You can also opt to start repaying straight away. You can also opt to pay straight away but more than the baisc £80 to reduce the time of the Loan. Applications should be made on JPA then when approved by JPAC print it out and take it to your LSAP POC in the HR/UPO etc and they will log it and fax/hard copy it for action.

housebuyer1_3

Hi I wonder if anyone could help? We have applied for the LSAP to top up our savings as a deposit on a house (we have put an offer in and had it accepted). We have applied for the full £8,500 and are at the stage of waiting for our solicitors to send the MOD information about our house purchase, we will then find out how much we eligible for. Does anyone know what they base the amount you qualify for on? My partner is convinced we will be fine and will get the full amount but I'm panicking and any advice would be gratefully received. Thanks

JokerDurden

Housebuyer they calculate it by working out which is the lowest of the following, 182 days gross pay which includes any form of specialist pay, doesn't include allowances. Or £8500. This also changes if you have had a previous property, if you need more gen PM me and I'll send it to you.

housebuyer1_3

Hello JokerDurden! For some reason I cannot view the PM, the site keeps saying I'm losing my connection - ggggrrrrrrrrrrrr

Could you possibly post your reply on here? Much appreciated

housebuyer1_3

JokerDurden - got your PM but now can't reply as I'm limited to 1 message every 60 mins... The LSAP application is in my partner's name as we are not married. He has been in for 10 years so has 12 left. This is the first house purchase for both of us... HOPEFULLY we'll get the full amount... just feel like I need to know so that I can be prepared to find some more money if necessary. Thanks for your help

housebuyer1_3

My partner is in the Army, Royal Artillery. Thanks for your help, much appreciated it.