Long Service Advance of Pay (LSAP)

Trying to find the DIN on this, but cant get the full copy for some reason. Any pay guru out there give me any details on this please?
Changes to the scheme have been announced by DSP PoL the changes are effective as from the 1st December 2005 these are highlighted in red. Please check with you Pay office for the full details of the changes.

Within the following criteria this scheme can provide an interest free loan of up to £8,500 or 182 days pay (whichever is the smaller) towards the purchase of a domestic residential property. Payment will be made direct to the applicant’s solicitor.

The loan is then repaid over 10 years, normally at 10% per year.

(If 12 years left or more to serve, repayment may start up to 2 years after loan is made.

If 10-12 years left, repaid over last 10 years of Service.

If less than 10 years left - repayment starts immediately - balance from Terminal Benefits)

The applicant must then own or partially own the property and the applicant and/or his/her immediate family must then occupy the property

Families and singles must at least occupy during weekends and leave periods


Applicants must:

Be currently serving with 3 months or more left to discharge.
Eligibility 4 years Service (Army & RAF) or taken on trained strength of the (Royal Navy & Royal Marines).
Be on pensionable engagement (open or of 22 years or more [16 years or more for officers]).
Medically fit.
Not have given notice or applied for Premature Voluntary Release, unless the individual has qualified for a terminal grant which is greater than the LSAP and from which the loan can be repaid.
Not have drawn any terminal benefits
Not have been warned for discharge

The property to be purchased must:

Be a residential property in UK, Channel Islands, Isle of Man or Republic of Ireland (for those recruited in the Republic or of Southern Irish parentage)
Be mortgageable (even if no mortgage is needed)
Be the only property to be owned by the applicant
Not be a business property (even if it includes living accommodation)
Not be a mobile home, a houseboat or a caravan.

The applicant must also agree to the MOD placing a legal charge on the property (although this may affect the amount of mortgage which a lender is prepared to offer you). (Separate rules apply for Northern Ireland)

Occasionally the loan may be available for home extensions but it is not to be used for furniture or fittings. No part of the loan can be used to offset negative equity arising from the sale of property owned by the applicant.


An advance under the LSAP Scheme of more than £5,000 is regarded by the Inland Revenue as a beneficial loan and, as such, will attract a tax liability

Entitlement to Service Families Accommodation ceases once an advance is made unless your CO believes your property is beyond reasonable daily travelling distance to a new posting or you are required to occupy SFA as part of the posting

Applicants intending to apply for an LSAP should check their entitlement with the current regulations prior to committing themselves to any expenditure

This is a short guide only, for more details please contact JSHAO or your Pay Office
Able, many thanks for that. I have applied for the allowance to purchase a house in Colchester. I am currently in Germany and will be posted to Colchester early next year. Will I be entitled to claim removals and disturbance to move my family and effects to my house, given that I will no longer be entitled to SFA?

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