2nd Charge on property for LSAP (BINNED)

Discussion in 'Finance, Property, Law' started by hastings, Sep 24, 2008.

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  1. Just thought i'd pass this very useful bit of info onto our very appreciated audience. Recieved a return phone call from the gurus dealing with LSAP in response to a question i had with the change of my mortgage to another lender and the second charge placed upon my property. Apparently the gurus are in the midst of filtering through all personnel that have used LSAP to help purchase a proprty and removing the second charge be set upon us, which can be a wee bit of a nut ache when re mortgaging. I think a little pat on the back for that one.
    Would appreciate if anyone can shed more light on this info and where we can find any relevant further information.
  2. Typical, I just beggered myself to pay off the LSAP in order to prevent the second charge thing happening. By the way, to those who dont know, the LSAP counts as a second charge on your mortgage. This means when you come to re-mortgage you have to pay to get a certificate of consent from the secetery of defence. Oh and if you tokk over £5000 you get hit with an extra tax bill.

    just so you know.
  3. Any more news on this? DIN or somesuch anyone?
  4. Rang 'em meself so i did.

    They are currently working their way thru' the A's and B's they have to complete before the end of Nov. (Always hated being called Zyminsky thats why i changed my name to Sapper Aardvark!)

    Apparo everyone will get the letter by then but it would nice to see something before that esp for the people needing to Remortgage any time soon or poor old Manic_mechanic types with loadsa money!

    Good luck everyone.
  5. Sitrep:

    Further info can be found on JPA Bulletin Board No: 0811-005 Dated 11/11/08. Hope it's useful for anyone else concerned. Glad to oblige. :D
  6. Can anyone put the info on here please??
  7. 21 October 2008 : Second Charge is Removed from Long Service Advance of Pay
    In order to simplify administration of the LSAP a policy change has come into force and there is no longer a requirement for the MOD to retain a second charge on a property purchased with the aid of the LSAP.

    With effect from 1 Oct 08 the requirement to impose a legal charge in favour of the MOD was removed and therefore Service personnel applying for a LSAP after this date have not been required to accept a second charge on the property they wish to purchase.

    If you are already in receipt of LSAP
    Service personnel currently in receipt of an LSAP are advised that administration of the removal of the second charge will be undertaken by SPVA(LSAP) and individuals will not incur any costs in order for this change to be effected.

    An LSAP recipient will receive a letter from SPVA(LSAP) with a Promissory Note enclosed which the individual is to return to SPVA within 30 days of receipt. The letter will be forwarded to the address for which LSAP was paid.

    Once the process to remove the second charge is complete the Service person will receive notification from SPVA(LSAP). Those currently in receipt of LSAP are to note that the process to remove all LSAP second charges is likely to take some time and that they will receive their notification in due course; there is no requirement to contact Joint Personnel Administration Centre (LSAP)(Centurion) section to hasten the process.
    If you are selling
    Service personnel in receipt of LSAP who are in the process of selling a property for which LSAP was granted or changing mortgage provider are to notify the LSAP office by raising a Service Request at the earliest opportunity.

    If you have previously been in receipt of LSAP
    Service personnel who have previously been in receipt of the LSAP and whose advance of pay has been converted to a Crown Debt are advised that the second charge on their property will not be removed, but will be retained by the MOD.
    JSP 752
    This change has the agreement of the single Services. This amendment will be included in the next version of JSP 752. All other aspects of Long Service Advance of Pay regulations and process remain unchanged.

    Hope That Helps All :D