IMPORTANT – the Long Service Advance of Pay scheme has now been frozen and is not open to new applications. It was replaced in April 2014 by the Forces Help To Buy Scheme [FHTB] – click here for information about how this new military home loans scheme can help you and how it affects those with an existing LSAP home loan.
Long Service Advance of Pay – what is it?
Long Service Advance of Pay (commonly known in the military as LSAP) is an interest free loan up to £8,500 which is available to all serving military personnel with four years service who wish to purchase a property in the UK. So if you are fed up with service accommodation and want to get onto the property ladder, LSAP could be the answer.
LSAP – who is eligible?
To qualify for long service advance of pay to help your armed forces house purchase, you will need to meet the following conditions;
• you need to have served in the RAF or Army for at least four years – or be on the trained strength of the Royal Marines or the Royal Navy
• you must be currently serving in the Armed Forces and have a minimum of 3 months or more before your discharge
• you cannot have received a discharge warning
• you must be medically fit
• you are not permitted to have drawn down any terminal benefits
• you cannot have given notice for or applied for Premature Voluntary Release – unless you qualify for a terminal grant which is larger than the LSAP loan (and out of which the LSAP can be repaid)
LSAP – loan amount
The amount of loan available is up to £8,500 or 182 days pay if that is less. To find out how much you may be eligible for you need to complete an application in JPA Form E024 at least six weeks before you are due to complete. You will; be advised as to how much LSAP you are eligible for.
LSAP – repayment
The loan is usually repayable interest free over a term of 10 years at a rate of 10% every year. The loan installments are deducted monthly from your pay or from your terminal bonus if necessary. .
Solicitors who understand about LSAP
Buying your own property [whether you want to live in it yourself or as a buy to let landlord] is complex and probably the biggest investment you will ever make. You need to make sure you get the right legal advice.
Many of our clients are service personnel and we understand how LSAP works.
So why not contact us today about your armed forces house purchase.
- For free initial phone advice call Sara Fewell on  422300
- or complete the contact form below