Long Service Adcance Of Pay (LSAP)

Discussion in 'Finance, Property, Law' started by PoisonDwarf, Apr 1, 2005.

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  1. An ETS officer told me that they believed the scheme has recently changed so that all squaddies can apply from the age of 30 or summat.

    Anyone aware of this?

    Next question - I think that the amount is £8500 but I want to know how long it's been at that level. Basically then I want to work out how much it has gone down in real terms and then go one step further and compare it to average house price trends and show how we're being given far less financial assistance than we used to get.

    I'd be interested in any of your thoughts


    (the next campaign is to work out how long the IRTC (resettlement) grant has been at £534 and work out how much that has gone down as well)
  2. Hmmm... Don't listen to the schoolies. They know Sweet Fanny Adams. LSAP for the Army you have to be 35 to apply.Different for RN, they can apply from 25 but not us. Also be aware that if you take over £5000.00 it becomes taxable as it's a benefitial loan. Yes the max you can take is £8500.00. However, the chances are if you're still in
    at 35+ you'll earn enough to be taxed at 40% and you're taxed on the full amount of your LSAP. My recommendation is take an LSAP of £4999.99 at 35. You won't pay anything for 2 years and then you'll pay it back at 10% per year with an interest rate linked to inflation. On the subject of house buying you are entitled to a refund of legal
    fees up to a max of £5000.00 (this inclues surveyors reports etc). Do not miss out on this! You are entitled to it but it's not hugely publicised. Wonder why...
  3. cheers ferg

    just realised that I mis-spelt the thread name. doh!
  4. Slightly bum steer as was pissed when posted. You'll only get refund of Legal Fees on moving house for service reasons i.e. on posting. You'll get blown out on initial purchase. :oops:
  5. How about an initial purchase near where you're getting posted?
  6. Sadly no. You'd have to be selling a house as a direct consequence of a posting to a new duty station or have a "Re-entry Certificate" from when you left the property market when posted abroad. :(
  7. Rules are changing to bring LSAP for Army and RAF into line with the Navy. Changes are from 1 Dec 05. About time too.


    The current rules have been in for about 8 years. It's a pity that in those 8 years, property has risen by 97%, therefore the LSAP has depreciated by approx 50% in relative terms. It used to be a good 10% deposit, but it's now a 5% at best (unless you're buying a carboard box in Orkney). Far too little, far too late. The army has gone on for years about accompanied service being the bedrock of the army welfare system, but people who keep up with that ethos are now leaving already priced out of the market.

    To give your family any hope at all, you need to totally forget all the accompanied ethos and get used to seeing your family at weekends. Hmmm...I think the coming years are going to be a challenge. I've just bought a place near my wife's family and not relishing the years of commuting ahead. Telic stag on eh - at least you get LSSA.
  8. 10K???!!

    why bother with all the paperwork and hassle with the AGC nazi's. Just max out a 9 month credit card offering interest free for 9 months, then keep shifting the amount from card to card for a couple of years. Whilst doing this, pay into a savings account what you would be paying pack normally for a loan and eventually you pay back LESS than you borrowed!

    Done it loads of times over the years.
  9. Don't forget too that if you give up married accompanied status then you also give Continuity of Education Allowance (CEA), the new name for BSA. So make a value assessment of which is most valuable to you.