Long Service advance of pay

Discussion in 'Army Pay, Claims & JPA' started by Crafty990, Aug 19, 2006.

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  1. This is the £8k (i think) you can apply for after 4 years service in order to buy a property to live in. What are the rules and restrictions governing this scheme.

    Basically I want to buy property using this but don't really want to live there just yet. How can I get round this?
     
  2. Yes, you are right but it is adviseable only to take 5 grand as....... over 5 you have to pay interest, 5 and below you don't!

    I'm not too sure how it works but I'm sure a pay wallah can tell you in more detail!
     
  3. i took the full whack & pay it back at one days pay per month & the remainder will come from my gratuity at 22 years.

    handy to have as i used it as my deposit & ended up not requiring a 100% mortgage which again is a bonus.

    see the pay clerks & fill in the paperwork then go back & fill it in again once they loose the first lot (sorry could not resist)
     
  4. cheers for that. I heard that I MUST then live in the property, is this the case?
     
  5. not sure but i believe if you said you were living in it then had to lease it out on posting there is not a lot they can do.

    i take it you know that buy to lease mortgages differ from thge normal type????
     
  6. Cheers for that. I did try a search but must typed the wrong thing.
     
  7. Wouldn't worry about only taking the £5K - if you need the £8.5K then take it the interest is almost negligable.

    There are a number of options for paying it back, depending upon how long you have left to serve. I have gone for the "pay nothing for 2 years plan" which happens to suit my circumstances.

    You will need to ensure that you inform your solicitor as the money will be paid directly to him. Your solicitor will also need to inform your mortgae company as the MOD will effectively have an 'interest' in your house until the loan is repaid.

    Sadly, these days £8.5K doesn't make a very big dent in a mortgate but I suppose it's better than nothing.

    Good luck!
     
  8. My hubby and I are both serving, does anyone know if we are both entitled to LSAP?
     
  9. I checked this week and have been told that it's pay nothing for 3 years...

    Does anyone know what's the ruling on have a lodger in your house that you've bought using LSAP that you live in at weekends/leave periods?
     
  10. Nope, only one of you is entitled to claim the £8.5K. Best bet is to take the full whack, and start paying back as soon as possible. The debt is recovered over 10 years. Lots of people fail to claim this because they think they are not entitled - don't forget it can be used for modifications to your current house, new build projects, etc.....
     
  11. You can have whoever you like living with you, as long as it is your house. The property must be for your immediate occupation though, unless you put a case up to the LSAP people at Gosport.
     
  12. Can anyone PM me with a civ phone number for the LSAP desk at Gosport. I need to contact them Urgently. Thanks
     
  13. I have PM'd you the number.

    However, further and contrary to my previous post, if you can afford it I would advise only taking out £4999. If you take the full amount then you will get hit by a hefty tax charge (not interest as somebody claimed earlier). This will be taken off at source by an adjustment to your PAYE Coding and depending on which tax band you are in could be a considerable amount (over £600 in my case) and costs more than adding the extra onto your mortgage.

    Good Luck.
     
  14. Be careful too as you wont be able to rent it out afterwards. I believe you must be in occupancy and if renting out end up immediatly paying back the loan at the current market value. It was that reason that i withdrew my application at the time.

    A good scheme though.